Mudra loan for sc, st and obc
“If you give a fish to a man, he will eat it for a day, but, if you teach him to fish, he will never get hungry”. The Pradhan Mantri Mudra Yojana is also following the same process. It is not only giving upliftment to the poor sector but also providing expert suggestions so that they should come across minimum risk and loss. In the last budget list, Mr. Arun Jaitley, the Finance Minister of India announced to propose a Micro Units Development Agency, which is also known as the MUDRA Bank. In the month of April, Prime Minister Narendra Modi finally decided to launch the program and loans are being offered to those who are in great need who cannot avail the basic banking facilities.
There is a new scheme Stand Up India launched by PM Modi for providing Loan for SC ST and Women.
Since then, there are several banks who are offering loans under the PMMY schemes for setting up small and micro business. It is estimated that Rs. 1.22 lakh crore will be disbursed under the scheme at the end of the year.
How to avail loans under the Pradhan Mantri Mudra Yojana Scheme
The Mudra Bank Loan is a whole new concept as of now. So, it is not a banker as a whole. But, in the future, it will definitely be a good banking service providing loans to the backward and poor sectors of our nation. Currently, the main service that is being offered is the re-financial services.
Now, the question arises, how to avail the loan?
- The borrower will simply approach to his nearest lending institution in his region. It may be a scheduled commercial bank for both public and private, regional rural bank, scheduled urban co-operative bank or a micro financial institution.
- There he will find several schemes.
- In case if he finds difficulties in choosing those schemes, there are certain agents who will guide them in choosing what scheme will best fit for their business.
- Now he has to apply for the loan and soon he will get whatever he has applied.
It may be a general question that why these banks will lend loans to these small business institutions, where there are chances of getting no returns? Well, the government will take the responsibility along with the borrower. Both of them will share a 50-50 liability towards the loan that the borrower has taken. The government will provide a subsidy to the borrower so that he can get his interests cleared over a period of time.
17 private sector banks, 27 public sector banks, 25 micro financial institutions and 27 regional rural banks have approved the schemes under the PMMY. These banks will be channelizing loans and they will provide it to the end borrower.
Types of loan under the PMMY
As of now, there are three schemes namely
- The shishu scheme– Offering loan up to Rs. 50,000. In other words, it is also termed as a startup loan.
- The kishor scheme– Offering loan above Rs. 50,000 to Rs. 5 lakh. It is also stated as the mid- level business institution setup loan.
- The tarun scheme– Offering loan above Rs. 50,000 to Rs. 10 lakh. This is meant for those who wants to set up a business in a bigger and advanced level.
- Stand Up India Loan :- From Rs 10 Laks to Rs 100 Lakhs (only for SC St and Women)
Key features of the Stand Up India Loan Scheme.
The key features are much delighting and any small or micro-institution will definitely find these features much better than any other features offered by other schemes.
- No collateral is necessary.
- There are zero processing fees.
- The rate of interest is only 1% per month.
- The maximum period of repaying the loan has been extended up to 5 years.
- Mudra cards have been launched that will provide working capital loans.
Loan for sc, st and Women | Stand Up India Scheme
For those belonging to sc, st and obc, there are some special relaxations and benefits. Checklists for borrowing loan for sc, st and obc-
- Proof of identity with self-attested. It may be voter card, driving license, passport or aadhar card.
- Residential proof, which will include electricity bill, water bill, recent telephone bill, bank statement or passport.
- Passport size photographs (2 copies).
- Lump-sum quotations of machinery that the borrower will need in order to set up his business.
- Details of machinery, the name of the supplier, items in the list that are to be purchased, the cost of machinery, everything with every detail should be mentioned.
- Any ownership identity, which will include the certificate of license.
- Most important, a certificate of proof regarding sc/st or obc.
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