The new India is a beacon of shining hope and the youngsters today are better equipped with technology to take on any challenge and take their nation forward. PM Narendra Modi has urged the youth of the nation to be job creators rather than being job seekers and he believes that every man and woman has a right to become self-sufficient and independent. Hence, supporting startups and small entrepreneurs is the need of the hour and that will help the country to grow and prosper.
It is generally believed that only large scale industries create more jobs when in reality, the facts are quite different. It is estimated that only about 1 crore 25 lakhs people find employment in multinational corporations while small enterprises give employment to about 12 crore people each day. The majority of the Indian population is now engaged in small and medium enterprises and the Government of India has now launched the Pradhan Mantri Mudra Yojana under the Micro Units Development and Refinance Agency, (MUDRA) bank.
Pradhan Mantri’s Mudra Yojana and its importance
The Mudra loan has been established to facilitate the development of and enhance the economic support to the small and micro units. It is a mode of funding being made available to the non- corporate and non- farming sector, which can help generate income for activities and enterprises whose credit requirements are below Rs 10 lakhs. It is aimed to provide a common platform for financial institutions like banks, RBBs, MFIs and NBFCs. The applicants will get an opportunity to meet these potential financers and offer them financial support.
NBFCs like Bajaj Finserv also offer MSME and SME loans for business growth and expansion. With high loan value up to Rs.30 lakh and low business loan interest rate, this is a perfect finance solution for small and medium businesses. You can avail the loan in 24 hours by submitting only 2 documents.
It is also important to remember that all Non Corporate Small Business Segment or NCSBS which comprises of proprietorship or partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits and vegetables vendors, food service units, truck operators, machine operators and small industries that deal with small electronic equipment manufacturing in rural and urban sectors. All of them can check their eligibility criteria for Mudra loan.
There are quite a few segments to Mudra Loan Yojana, and there are three product heads that one can choose from. That will mostly depend on the stage of growth and funding needs of the beneficiary. They are:
How to apply for Mudra Loan?
To apply for the Mudra loan, one has to first check the eligibility. The Applicant must be an Indian citizen above the age of 18 years and must have a business plan in place. The plan must contain crucial information regarding the venture like its structure, investment plans, nature of product, client profile, marketing, future growth, demand for the product or service and the like. The nature of the industry should also be non- farming and the investment requirement must not exceed Rs 10 lakhs. All other regulations would be as per the RBI guidelines and the Mudra Yojana rules.
The benefit of the Yojana lies in the fact that small businessmen in the rural sectors mostly have to rely on unscrupulous money lenders in the interiors and the mode of transaction is often not transparent. The MUDRA scheme is sure to instill new confidence and give them a ray of hope and it shows that the government is ready to support the efforts of the small businessmen who are trying to achieve something on their own. It can help in brand building, good advertising and provide concrete financial support to budding entrepreneurs.
