Suresh C. Angadi, MP, has appealed to people to take advantage of the Micro Units Development & Refinance Agency Limited (MUDRA) under the Pradhan Mantri MUDRA Yojana of the Union government.
Speaking to presspersons on the sidelines of MUDRA Mela held here on Thursday, he said the scheme, which was activity and demand-based, was established to fund the non-corporate small business enterprises, and to strengthen the domestic small and petty retailers vis-à-vis entry of MNC controlled shopping stores.
Under the aegis of Pradhan Mantri MUDRA Yojana, MUDRA has created its initial products / schemes. The interventions have been named Shishu, Kishor and Tarun to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation / growth to look forward to. Shishu covers loans up to 50,000; Kishor- loans above 50,000 and up to 5 lakh; Tarun covers loans above 5 lakh and up to 10 lakh.
There were over 5.75 crore self-employed individuals but not many of them have easy access to bank loans to improve their business. Replying to questions, Mr. Angadi said the features in MUDRA and the Pradhan Mantri Rozgar Yojana and other self-employment schemes and the MSME scheme were different.
Kamala Devi, Regional Manager of SyndicateBank, the Lead Bank of Belagavi district, said the beneficiaries under MUDRA could avail themselves of loans up to Rs.10 lakh without any collateral security. MUDRA Ltd. would take care of the NPAs if generated.
She said the interest component on the loans under the scheme was 12 per cent per annum and there was no subsidy in any form.
The scheme provides funds to improve non-corporate business establishments
