Mudra Loan for SC ST and OBC
Credit facility had not reached small businesses in India ever due to unorganised management of such facility. Mudra Loan under PMMY has really helped in fulfilment of small businesses' needs at right time and in right manner. Mudra bank loan for SC/ST and Mudra loan for OBC can also be offered. People belonging to Scheduled Caste (SC), Scheduled Tribe (ST) or Other Backward Classes (OBC) have been given special attention while providing credit facility under Mudra Loan Scheme.
As per NSSO survey (2013), there are around 5.77 crore small and micro units in India, engaging around 12 crore people, mostly individual proprietorship/Own Account Enterprises. Over 60% of units are owned by persons belonging to Scheduled Caste (SC), Scheduled Tribe (ST) or Other Backward Classes (OBC). Most of these units are not availing finance from formal banking system, resulting to borrow from informal sources or use their limited owned funds. There are state wise schemes are running for example: SC ST loan scheme in Karnataka, SC ST loan scheme in Telangana, SC ST loan scheme in UP, SC ST loan scheme in Maharashtra, etc. to benefit all the people belonging to these categories.
Mudra Loans are also given to SC, ST and OBC so that they can also do what they want to do in their businesses with the funds granted to them under Mudra Loan Scheme. This scheme is very transparent in terms of rate of interest and repayment of loan related matters. Further, the government has clarified that women, SC, ST and OBC Category would be preferred while giving loans under this scheme or providing Mudra loan for small business run by these categories.
As per government's estimates, there are total of 5.77 crore small business units in India. Out of which, 3.57 crore small units are run by people belonging to the socially disadvantaged classes (including other backward class).
3-Tier Loan Structure of Mudra Loan for SC, ST and OBC
3-Tier Loan Structure of Mudra Loan for SC, ST and OBC is as follows:
- Shishu: Loans up to Rs.50,000 provided to only startup businesses
- Kishore: Loans above Rs.50,000 and up to Rs.5 lakh provided to only those businesses that have already started up but need financial aid for establishing
- Tarun: Loans above 5 lakh and up to Rs.10 lakh provided to only those business that are already established but require funds for expansion
Eligibility for Mudra Loan for SC, ST and OBC
- The applicant should be Indian Citizen
- The applicant should be above 18 years of age
- There should be a concrete micro or medium business plan
- The applicant should have identity and address proof
- Copy of the ST/SC/OBC certificate
In 2016-17, Pradhan Mantri Mudra Yojna (PMMY) has extended loan amount worth Rs 1.8 crore, out which 35% has been given to people under OBC category, 20% to people under SC category and 5% in the category of ST.
