Micro Units Development and Refinance Agency Ltd. [MUDRA] is an NBFC supporting development of the micro-enterprise sector in the country. MUDRA provides refinance support to Banks / MFIs for lending to micro units having loan requirements up to 10 lakh. MUDRA provides refinance to micro-business under the Scheme of Pradhan Mantri MUDRA Yojana. The other products are for development support to the sector. The bouquet of offerings of MUDRA is depicted below. The offerings are being targeted across the spectrum of beneficiary segments.
Under the aegis of Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created 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:
It would be ensured that more focus is given to Shishu Category Units and then Kishor and Tarun Categories. Within the framework and overall objective of development and growth of the micro-enterprises sector under Shishu, Kishor, and Tarun, the products being offered by MUDRA are so designed, to meet the requirements of different sectors/business activities as well as business/entrepreneur segments. The funding support from MUDRA is of four types :
In order to encourage women entrepreneurs, the financing banks / MFIs may consider extending additional facilities, including interest reduction on their loans. At present, MUDRA extends a reduction of 25bps in its interest rates to MFIs / NBFCs, who are providing loans to women entrepreneurs.
MUDRA also supports Banks / NBFCs / MFIs for raising funds for financing micro-enterprises by participating in the securitization of their loan assets against micro-enterprise portfolio, by providing second loss default guarantee, for credit enhancement, and also participating in the investment of Pass-Through Certificate (PTCs) either as Senior or Junior investor.
Micro Credit Scheme is offered mainly through Micro Finance Institutions (MFIs), which deliver the credit up to Rs.1 lakh, for various micro-enterprise activities. Although the mode of delivery may be through groups like SHGs/JLGs, the loans are given to the individuals for specific income-generating micro-enterprise activities. The MFIs for availing financial support need to enroll with MUDRA by complying to some of the requirements as notified by MUDRA, from time to time.
Different banks like Commercial Banks, Regional Rural Banks, and Scheduled Cooperative Banks are eligible to avail of refinancing support from MUDRA for financing micro-enterprise activities. The refinance is available for term loans and working capital loans, up to an amount of 10 lakh per unit. The eligible banks, who have enrolled with MUDRA by complying with the requirements as notified, can avail of refinancing from MUDRA for the loan issued under Shishu, Kishor, and Tarun categories.
Mudra loan is extended for a variety of purposes which provide income generation and employment creation. The loans are extended mainly for: