What are the Industries covered under Mudra Yojana
MUDRA Bank or Micro Units Development and Refinance Agency Bank, is a new initiative by the Government of India set up for the development of micro units and refinance of MFIs. This bank has been conceptualized in order to encourage entrepreneurship, by offering funds to the non-corporate small business sector. The MUDRA Yojana was announced by the Finance Minister during FY2016’s Union Budget. According to this scheme, the loan under Pradhan Mantri Mudra Yojana (PMMY) can be availed by any Indian citizen, with a credit requirement of Rs 10 lakh and has a business plan for a non-farm sector income generating activity such as trading, manufacturing, service sector, or processing. A Bank, MFI (Micro Finance Institution), or NBFC (Non-Banking Finance Company) can be approached for availing of MUDRA loans.
List of Industries avail Mudra Bank Loan
The MUDRA Bank covers industries and other service sectors that are operating in rural areas of the country. The schemes are specifically designed for the weaker section of people with good entrepreneur skills who require working capital to start their business. The Yojna also operates a special scheme for women entrepreneurs called Mahila Uddyami Scheme. In order to avail the Mudra loans under PMMY, the usual terms and conditions of the lending agency are applicable. Rates are determined as per the guidelines of the RBI. Here is a list of industries that can avail the MUDRA Bank loan.
- Fruits and vegetable vendors
- Non-Corporate Small Business Segment (NCSBS) running as small manufacturing units that comprise millions of proprietorship or partnership firms
- Service sector units such as beauty parlours, boutiques, courier agents, cycle and motorcycle repair shop, dry cleaning shops, DTP and Photocopying Facilities, gymnasiums, pharmacies, saloons, tailoring units, etc.
- Truck operators.
- Loans can be availed for purchase of transport vehicles for goods and personal transport such as passenger cars, auto rickshaw, e-rickshaws, taxis, small goods transport vehicle, 3 wheelers, etc.
- Food-service units
- Food processing units such as agricultural produce preservation at rural level, small service food stalls, biscuit, bread and bun making, canteen services, day-to-day catering, cold storages and cold chain vehicles, jams/jellies making, papad and pickle making, sweet shops, ice and ice cream making units.
- Repair shops or mechanic sheds
- Small industries such as chicken work, cotton ginning, traditional embroidery and hand work, handloom, knitting, apparel design, computerized embroidery, traditional dyeing and printing, powerloom, textile non garment products such as bags, vehicle accessories, furnishing accessories, zari and zardozi work, stitching and others.
- Machine operators
Interest Rates for MUDRA Bank Loans
The bank offers nominal rates of interest based on the requirement. Here are the interest rates for loans of different schemes provided by the MUDRA Bank:
MUDRA SHISHU Yojana
Banks offer loans up to Rs 50,000 under the Mudra Shishu Yojana. Being a basic scheme, a nominal interest rate of around 10% to 12% is charged for the loan.
MUDRA KISHOR Yojana
A loan amount of Rs 5,00,000 is offered under Mudra Kishor Yojana. Categorized as unsecured loan and being a middle scheme the rate of interest ranges from 14% to 17% depending on the bank, where loan is availed.
MUDRA TARUN Yojana
The last scheme offered is the Mudra Tarun Yojana, where a loan amount of Rs 5,00,001 to Rs 10,00,000 can be availed. An unsecured loan, this comes with an interest rate of 16% and may vary according to the bank approached.
This was all about the industries covered by the MUDRA Bank and interest rates offered on the loan scheme. In order to avail a loan, all essential details should be furnished to the bank for a seamless procedure.
Banks offering Business Loans under PMMY
The banks that are officially approved to offer Business Loans should meet the following criteria according to their category. The following criteria also applies to microfinance and small business companies.
Scheduled Commercial Banks –
- Should be either public sector or private sector
- Should have been operational for at least for 3 years
- A profit track record 3 continuous years is a must
- Non-performing assets should not be more than 3%
- A minimum net worth of INR 100 crores is mandatory
- Must have a Credit to Risk Assets Ratio of not less than 9%
Regional Rural Banks –
- Non-performing assets should not exceed 3%
- Credit to Risk Assets Ratio should be more than 9%
The banks that are currently offering business loans under the Pradhan Mantri MUDRA Yojana have interest rates ranging from 11% to 37%. Some of the more popular banks that are offering MUDRA loans are as follows –
What are the Public Sector Banks offering Mudra Loans?
- Oriental Bank of Commerce
- Kotak Mahindra Bank
- Standard Chartered Bank
- Indian Bank
- State Bank of Patiala
- Bank of India
- Central Bank of India
- IDBI Bank
- Dena Bank
- State Bank of Bikaner and Jaipur
- State Bank of Travancore
- Canara Bank
- Allahabad Bank
- Vijaya Bank
- Karur Vysya Bank
- UCO Bank
- Bank of Baroda
- Union Bank of India
- Indian Overseas Bank
- South Indian Bank
- Bank of Maharashtra
- State Bank of Hyderabad
- State Bank of India
- Syndicate Bank
- Punjab & Sind Bank
- United Bank of India
- Andhra Bank
- State Bank of Mysore
- Corporation Bank
- Bharatiya Mahila Bank
- Central Bank of India
- Punjab National Bank
What are the Private Sector Banks offering Mudra Loans?
- ICICI Bank
- HDFC Bank
- Indusind Bank
- Axis Bank Ltd
- Jammu & Kashmir Bank
- Karnataka Bank
- City Union Bank
- Yes Bank
- South Indian Bank
- Kotak Mahindra Bank
- Federal Bank
- Tamilnad Mercantile Bank
- Karur Vysya Bank
- DCB Bank
- Catholic Syrian Bank
- Nainital Bank
- Ratnakar Bank
What are the Co-operative Banks offering Mudra Loans under PMMY?
- Kalupur Commercial Co-operative Bank
- Gujarat State Co-operative Bank
- Mehsana Urban Co-operative Bank
- Rajkot Nagarik Sahakari Bank
What are the Other Institutions offering Mudra Loans?
Apart from banks, certain micro finance institutions (MFIs) and non-banking financial companies (NBFCs) also offer MUDRA loans. Here is a list of the organizations:
- Mahindra & Mahindra Financial Services Ltd
- Shriram City Union Finance Ltd.
- Reliance Capital Ltd.
- Religare Finvest Ltd.
- Fullerton India Credit Co. Ltd.
- Shriram Finance Corporation Pvt Ltd. (SRFCL)
- Indiabulls Financial Services Ltd.
- Shriram Transport Finance Co. Ltd.
- India Infoline Finance Ltd (IIFL)
- MAS Financial Services Ltd.
- Bansal Credits Ltd.
- SREI Equipment Finance Ltd.
- AU Financiers India Ltd.
- Vistaar Financial Services P. Ltd.
- Magma Fincorp Ltd.
- India Infoline Ltd.
- Five Star Business Credits Ltd.
- Intec Capital Ltd.
- IKF Finance Ltd.
- Esskay Auto Finance Ltd.
- Equitas Finance Pvt. Ltd.
- Electronica Finance Ltd.
- Sakthi Finance Ltd.
- SE Investments Ltd.
- ECL Finance Ltd.
What are the Microfinance Institutions (MFIs): MFI – NBFC offering Mudra Bank Loans?
- Arohan Financial Services Pvt. Ltd.
- Arth Micro Finance Pvt. Ltd.
- Belstar Investment & Finance Pvt. Ltd.
- Bhartiya Micro Credit
- Cashpor Micro Credit
- Digamber Capfin Ltd.
- ESAF Micro Finance & Investments Pvt. Ltd.
- Equitas Micro Finance Pvt. Ltd.
- Fusion Microfinance Pvt. Ltd.
- Future Financial Services Ltd.
- Grameen Development & Finance Pvt. Ltd.
- Hindustan Microfinance Private Limited
- IDF Financial Services Pvt. Ltd.
- Jagaran Microfin Pvt. Ltd.
- Madura Micro Finance Ltd.
- Mahashakti Foundation
- Margdarshak Financial Services Ltd.
- Midland Microfin Ltd.
- Muthoot Fincorp Limited
- Namra Finance Ltd.
- Navachetana Microfin Services Pvt. Ltd.
- RGVN (North East) Microfinance Ltd.
- SKS Microfinance Ltd.
- S V Creditline Pvt. Ltd.
- Sahyog Microfinance Ltd.
- Saija Finance Private Ltd.
- Sakhi Samudaya Kosh
- Samasta Microfinance Ltd.
- Sambandh Finserve Pvt Ltd
- Satin Credit Care Network Ltd.
- Shikhar Microfinance Pvt. Ltd.
- Sonata Finance Pvt. Ltd.
- Suryodaya Microfinance Ltd.
- Ujjivan Financial Services Pvt. Ltd.
- Utkarsh Micro Finance Pvt. Ltd.
These were some of the institutions that offer PMMY loans to small businesses across the countries. The list of organizations, however, are subject to change as per the Government’s directive. Hence, it is always essential to check if the bank or micro-finance institution is offering MUDRA loan, before approaching it.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.