57 - Important Points to know about MUDRA Bank

GK BY - SANJAY UTTAM
Important Points to know about MUDRA Bank

1.) MUDRA bank is a public sector
financial institution that provides loans at low rates to microfinance institutions and non-banking financial institutions.

2.) This bank comes under the Pradhan Mantri MUDRA Yojana scheme to provide services to small entrepreneurs outside the service area of regular banks.

3.) Initial capital fund allotted for the bank is 20,000 crore.

4.) Credit guarantee fund is 3000 crore.

5.) Initially the bank functions as non-banking financial company and a subsidiary of the Small Industries Development Bank of India(SIDBI).

6.) Will act as a regulator for the micro finance institutions(MFI), providing refinancing services and guidelines to MFI.

7.) MUDRA bank classifies its customers in 3-categories.

--Shishu – can avail loans upto Rs.50,000

--Kishore – can avail loans upto Rs.5,00,000

---Tarun – can avail loans upto Rs.10,00,000

8.) Additional fund of Rs.1,00,000 crore was allotted to MUDRA increasing the percentage of loans provided to its customers as follows.
----40% to Shishu
----35% to Kishore
----25% to Tarun

9.) Customers who are eligible to avail loans from MUDRA bank are as follows.
----Small manufacturing units
----Shopkeepers
--- Fruits or vegetable vendors
----Artisans