Mudra scheme: a light of hope for small scale businesses
MUDRA is a scheme launched by the central government of India to help the small businessmen to develop their business and help the Indian economy to grow. This scheme was launched in April of this year to provide financial help to the small sector businesses.
Under the Micro Units Development and Refinement Agency Ltd or MUDRA scheme there has been allotted a total corpus of 20,000 crore and credit guarantee corpus of 3,000 crore. Generally the small sector businesses and poor people cannot avail the benefits of loan from the banks because of the high interest rates and inability to provide an asset of equal amount.
Therefore MUDRA bank has been set up by the central government. This is a pool of money that will be granted to the poor people who are mostly in small businesses and need assistance to develop their already set up business or start a new small business all together.
The main targets of this scheme are the young and educated people of the country who if encouraged in a proper manner can really make a big difference to the economy of the country. This platform is not only to provide financial help to the poor but also give the women who control the small business financial help as well as advices regarding the further upliftment of the business.
This will help the business reduce the stress period to the minimum and start gaining profits early as a panel of experts are going to advice on the matter. A total of 5.77 crore small business units will be looked after by the bank financially.
There have also been devised proper recovery methods which will ensure that the money that has been granted is used in the way it should be. Any defaulters will be rightfully prosecuted.
There are in all three schemes that have been launched under MUDRA scheme and they are Shishu, Kishore and Tarun. These schemes are based on the types of businesses and their needs.
Shishu stage will be the initial stage where in the small businesses will start with a loan amount of Rs. 50,000.
Kishore stage will entitle a client to avail a loan amount from Rs. 50,000 to Rs. 5 lakh. This stage is for the businesses that have picked well in the initial stages.
Tarun stage is for the businesses that want to expand further and a loan amount of 5 lakh to 10 lakh can be availed at this stage.