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 requirement 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.
Eligibility Criteria:
ELIGIBILITY CRITERIA FOR PARTNER INSTITUTIONS Micro Units Development and Refinance Agency (MUDRA) has adopted the eligibility norms in respect of the various category of Banks for the partner lending institutions for the purpose of availing refinance to micro units in manufacturing, trading and service sector in rural and urban areas.
I. SCHEDULED COMMERCIAL BANKS
A. Public Sector Banks
- Should have earned profit during the last 2 years failing which minimum external rating of long term instruments not below A-(minus) from accredited credit rating agencies.
- Level of Net NPAs not exceeding 15%.
- CRAR as stipulated by RBI from time to time.
- Net worth above Rs.250 crore.
B. Private Sector Banks
- Should have earned profit during the last 2 years failing which minimum external rating of long term instruments not below A-(minus) from accredited credit rating agencies.
- Level of Net NPAs not exceeding 10%.
- CRAR as stipulated by RBI from time to time.
- Net worth above Rs.250 crore.
C. Regional Rural Banks
- Should have earned a net profit for the preceding two years.
- Level of Net NPAs equal to or less than 6%.
- CRAR as stipulated by RBI from time to time.
- Net Owned Fund above Rs.50 crore.
D. Small Finance Banks
- Should have been granted a final license by Reserve Bank of India (RBI) for carrying on Small Finance Bank business and have commenced operations of the Small Finance Bank.
- SFB/previous entity prior to conversion into SFB (taken together) should have earned profits during the last 2 financial years.
- Should have a sizeable outstanding portfolio (> `500 crores) comprising advances to micro/small enterprises in respect of income generation in manufacturing, services, trading or activities allied to agriculture /other activities approved/to be approved unde
PMMY Kit:
Common Loan Application form for Kishor and Tarun DOWNLOAD
Application Form for Shishu DOWNLOAD
Check list for Shishu Application DOWNLOAD
Banker’s Kit :
Application form for Claiming Refinance DOWNLOAD
Data Submission for Claiming Refinance DOWNLOAD
PMMY loans from time to time
Should have strong fundamentals based on last audited balance sheet.
CRAR as stipulated by RBI from time to time.
Net worth greater than or equal to 100 crores.
Gross NPA less than or equal to 5%.
II. MICROFINANCE INSTITUTIONS
Should be a registered legal entity lending to micro units meeting the loan size criteria of MUDRA (which is presently loan size of Rs.1 lakh or as stipulated by RBI from time to time) for at least 3 years or the promoters /management should have an experience of at least 10 years.
Having a minimum outreach of 3000 existing borrowers.
Should have received minimum capacity assessment rating as indicated below:
Mfr-4 (equivalent to CRISIL) for TN, Kerala, Karnataka and Puducherry
Mfr-4 (equivalent to CRISIL) for Tier-I and Tier-II MFIs and Mfr-5 for the Tier-III MFIs in other remaining states.
Should have suitable systems, processes and procedures such as internal accounting, risk management, internal audit, MIS, cash management etc.
Should target own account enterprises within micro units category i.e. business run by the owner.
Meeting the minimum CRAR and other norms stipulated by RBI for MFIs registered as NBFC-MFIs and comply with all the prevailing RBI guidelines, including pricing etc.
Three years profitable track record, Recovery performance not less than 90%, Portfolio at Risk > 90 days below 5% (relaxable up to 7% on case to case basis) for MFIs.
Should be a member of credit bureaus as per RBI policy.
Has a minimum term loan/refinance requirement of Rs.0.50 crore.
Targets the poor, especially women and is secular.
Has audited financial statements (in case of NGO with microfinance as a programme, the NGO should have separate audited financial statements for the MFI programme) and
For NBFCs or any other MFI set up for/by taking over the existing MF operations of another entity, track record of the earlier entity can be considered for existence, past ratings etc., guidelines relating to value of FDRs to be placed as security etc. subject to continuity of promoters/senior management/transfer of major (> 60%) part of the MF operations of the earlier entity.
MUDRA’s loan to be on-lent by MFIs for use by borrowers in; setting up/running nonfarm income-generating activities and micro/small enterprises including trading activities/services.
III. NON BANKING FINANCE COMPANIES (NBFCs)
A. Larger NBFCs i.e. Assets size > Rs.500 crore
The NBFC should be registered with RBI as Asset Finance Company (AFC) or Loan Company. In respect of NBFC-Loan Company, a CA certificate that if the loan is given for income-generating activities, 60% of the income comes from productive assets should be furnished. Two Tier NBFCs extending loan/resource support to MFIs (both NBFC-MFIs and non-NBFC MFIs complying with RBI norms for NBFCMFIs or priority sector status) for on-lending to ultimate borrowers would also be considered.
NBFC should have been in business for 5 years and should have earned Net Profit for the last 3 years. In the case of the NBFCs financing second-hand vehicles, the NBFC needs to have experience of 3 years in the activity and also have recorded profit during the period.
Minimum Net Owned Fund of Rs.20 crore and Minimum Asset size of Rs.500 crore.
CRAR-Minimum 15%.
Minimum Gross NPA & Net NPA would be based on the rating of the agency.
External rating range of BBB+ and above.
B. SMALLER NBFCs i.e. Asset size less than Rs.500 crore
The NBFC should be registered with RBI as Asset Finance Company (AFC) or Loan Company. In respect of NBFC-Loan Company, a CA certificate that if the loan is given for income-generating activities, 60% of the income comes from productive assets should be furnished. Two Tier NBFCs extending loan/resource support to MFIs (both NBFC-MFIs and non-NBFC MFIs complying with RBI norms for NBFC-MFIs or priority sector status) for on-lending to ultimate borrowers would also be considered
Should have been in business for 5 years and earned a Net profit for the last 3 years. In the case of the NBFCs financing second-hand vehicles, the NBFC needs to have experience of 3 years in the activity and also have recorded profit during the period.
Preference may be given to NBFCs enjoying well-conducted credit facilities from Scheduled Commercial Banks.
Minimum Net Owned Fund of Rs.15 crore and Minimum Asset size of Rs.25 crore.
The NBFC normally has done the lending business of at least Rs.20 crore during the immediately preceding financial year.
CRAR-Minimum 15%.
Minimum Gross NPA & Net NPA would be based on the rating of the agency.
External rating range of BB- and above.
Fiscal Incentives:
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, MUDRA offers incentives through these interventions:
> Shishu: covering loans up to 50,000/-
> Kishor: covering loans above 50,000/- and up to 5 lakh
> Tarun: covering loans above 5 lakh and up to 10 lakh
Generally, loans up to 10 lakh issued by banks under Micro Small Enterprises is given without collaterals.
Objective Of The Scheme:
Mudra loan is extended for a variety of purposes which provide income generation and employment creation. The loans are extended mainly for a Business loan for Vendors, Traders, Shopkeepers and other Service Sector activities Working capital loan through MUDRA Cards Equipment Finance for Micro Units Transport Vehicle loans.
Category: Loan Scheme Pradhan Mantri Mudra Yoajan