International Journal of Creative Research Thoughts
ISSN (Online): 2320 – 2882
www.ijcrt.org || Volume 8 Issue 12 || December 2020 || PP—3022-3029
M
udra Yojana was one of the most ambitious program started by Modi Government in the year 2015. MUDRA or Micro Units Development and Refinance Agency was setup with an aim to provide easy credit to the start-ups and small, medium and micro enterprises. The loans disbursed under MUDRA scheme is categorised into three categories
- SHISHU (loans up-to 50000)
- TARUN (loans from 50001 to 5 lakh)
- KISHOR (loans from 5 lakh to 10 lakh)
The names Shishu, Tarun and Kishor signifies the funding needs of the entrepreneur or the start-up. The major objectives of the MUDRA scheme are to generate employment both direct and indirect, encourage start-ups, provide for the financial needs of small and medium enterprises which consists of almost 93% of India’s work force, to formalise the economy as major portion of these MSMEs work as informal business unit without any registration, till now most of the MSMEs and entrepreneur depended on informal money lenders, friends, relatives and access to formal banking was very limited so to streamline these underserved section of small businesses and entrepreneurs and give them access to formal banking system became important. MUDRA was established as wholly owned subsidiary company of SIDBI and NBFI registration from RBI on 8th April 2015. The present authorised capital of MUDRA is 5000 crore rupees with paid up capital of 1657.93 crore. SIDBI has allocated the whole capital of MUDRA. RBI from the shortfall of priority sector lending of commercial banks has allocated 20000 Crore to create Refinance Corpus Fund.
