Prime Minister Narendra Modi has launched Micro Units Development and Refinance Agency Ltd. (MUDRA) bank at the Vigyan Bhavan in New Delhi. The bank will act as a regulator for ‘Micro-Finance Institutions‘ (MFIs) and provide credit of up to Rs 10 lakh to small entrepreneurs. The bank is launched with a corpus of Rs 20,000 crore and a credit guarantee corpus of Rs 3000 crore.
Finance Minister Arun Jaitley said MUDRA Bank is aimed at “funding the unfunded“. Prime Minister said MUDRA Bank will infuse a new confidence in the small entrepreneurs, who have been exploited by the money lenders. The Prime Minister asked the bankers to study the successful microfinance models being followed in other countries and try to adapt them according to the local requirements.
Financial services secretary Hasmukh Adhia said that the GOI has already appointed Jiji Memon as CEO of Mudra Bank. Mr Menon is the chief general manager with Nabard.
The initial products and schemes under this MUDRA have already been created and 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.
Loan Coverage Details
- Shishu – Up to Rs 50,000
- Kishor – Above Rs 50,000 and up to Rs 5 lakh.
- Tarun – Above Rs 5 lakh and upto Rs 10 lakh.
MUDRA would be responsible for developing and refinancing through a Pradhan Mantri MUDRA Yojana. MUDRA would also partner with state/regional level coordinators to provide finance to “Last Mile Financiers” of small/micro business enterprises.
