Prime Minister Narendra Modi today launched the Mudra Yojana that will offer loans of up to Rs 10 lakh at low rate of interest
The government of India launched the Micro Units Develolpment and Refinance Agency that will offer loans of up to Rs 10 lakh at marginal rates, and will focus on the 5.75 crore self-employed who use these funds and provide jobs to 12 crore people.
"A look at the details reveals the reality that only 1.25 crore people find employment in large industries, whereas small enterprises employ 12 crore people... MUDRA scheme is aimed at funding the unfunded," Modi said.
The Pradhan Mantri MUDRA Yojana, which has a corpus of Rs 20,000 crore, can lend between Rs 50,000-Rs 10 lakh to small entrepreneurs. It has been set up for development and refinancing activities relating to micro units.
It will provide refinance to banks and other institutions at 7 per cent. MUDRA has been registered as an NBFC with the Reserve Bank, Adhia said, adding that within a year, the government intends to come out with a legislation to convert the NBFC into a bank.
He further said that MUDRA would act as a subsidiary of SIDBI and there would be no overlap with the functioning of the two. It will also help in developing MFI sector.
The roles envisaged for MUDRA include laying down policy guidelines for micro enterprise financing business and registration of MFI entities as well as their accreditation and rating.
The government has already appointed Jiji Memon as the CEO of MUDRA. Memon was a NABARD Chief General Manager. In his Budget 2015-16 speech, Finance Minister Arun Jaitley had proposed the settin