11 Things You Must Know About Mudra Bank By Narendra Modi launched

PM of india narendra modi & Arun Jaitley launches the MUDRA bank on Wednesday for the small business man to get loans for their business from the bank.As the big bank have many term and conditions to pass the loan and sometimes the loan has disapprove by the bank due to voilation of some conditions so the business man have to bear it so thats why Prime minister has launced the the Mudra bank for them.

Terms and Conditions of The Mudra Bank Decided By The PM

What does it stand for?

Mudra Bank stands for Micro Units Development Refinance Agency (MUDRA). Also, Mudra, in Hindi, means currency.

Setting up

Mudra Bank is being set up through a statutory enactment and will be responsible for developing and refinancing through a Pradhan Mantri MUDRA Yojana.

Last mile financiers

Since small entreprenuers are businssess are often cut off from banking system because of limited branch presence, Mudra Bank will partner with local coordinators and provide finance to “Last Mile Financiers” of small/micro businesses.

Targets

The Finance Ministry said measures to be taken up by MUDRA are targeted towards mainstreaming young, educated or skilled workers and entrepreneurs including women entrepreneurs.

5.77 crore

The bank will cater to 5.77 crore small business units that are spread all across India who currently find it difficult to access credit from the regular banking system.

Recovery method

Mudra Bank will ensure clients are properly protected and will lay down principles and methods of loan recovery in case of a default. The Bank will also rigidly follow “responsible financing practices” so deter borrowers from indebtedness.

Corpus

The Bank will be set up with a corpus of Rs 20,000 crore and a credit guarantee fund of Rs 2,000 crore.

Source-dnaindia.com