In the current year, the Central Government aims to facilitate credit up to Rs. 1 lakh crore under MUDRA (Micro Units Development and Refinance Agency) scheme offering credit facilities to small businesses.
In one of its statements, the Bank of Maharashtra said that it has signed a general refinance agreement to finance new entrepreneurs and small business with MUDRA Bank.
Under the new scheme, there are three categories of loans — ‘Shishu’, in which a loan of up to Rs. 50,000 is offered; ‘Kishor’ offering loan above Rs. 50,000 up to Rs. 5 lakh and ‘Tarun’ offers loan above Rs. 5 lakh and up to Rs. 10 lakh — that will be sanctioned and disbursed by banks.
It further added that the amount will be refinanced through MUDRA Bank.
S Muhnot, Chairman and Managing Director of Bank of Maharashtra said that the bank has already started financing new entrepreneurs/small business and sensitised its field functionaries on extending finance under the scheme.