The current Prime Minister, Narendra Modi has always stressed on the fact that the youth of the country should be job creators as opposed to job seekers. By supporting small scale industries, it ensures their survival as well as paves the way to success and prosperity of the country. This also allows a certain majority of the population to become self-sufficient and independent and set up their own businesses.
As opposed to large scale industries which employ a little more than a crore people, small scale industries employ almost twelve crore people in the country. Keeping these small scale industries in mind, the Government has come up with the Pradhan Mantri Mudra Yojana under the Micro Units Development and Refinance Agency (MUDRA) bank.
About the Pradhan Mantri Mudra Yojana:
The yojana looks to facilitate development and economic help to the non-corporate and non-agro sectors whose credit requisites are below 10 lakhs. All Non-Corporate Small Business Segment (NCSBS) such as food service units, food processors, machine operators, small shopkeepers etc will be eligible for economic support under MUDRA bank.
There are a few eligibility criteria that a person needs to meet before availing these loans:
• Applicant must be an Indian citizen and should be above 18 years of age.
• The type of industry should be non-agricultural.
• Other guidelines are same as the ones of RBI and MUDRA bank.
The three types of schemes that have been devised to provide the small scale industries with loans are:
• Shishu scheme: Loans up to INR 50,000
• Kishore scheme: loans between INR 51,000 to INR 5,00,000
• Tarun: Loans between INR 5,00,000 to 10,00,000