1. Mudra Bank invests Rs.50 crore in Janalakshmi Financial Services

Mudra Bank, a refinance bank for microfinance and non-banking financial companies, has invested Rs.50 crore in Janalakshmi Financial Services Pvt. Ltd through a securitization deal facilitated by IFMR Capital. This is Mudra Bank’s first capital market transaction.

IFMR Capital has facilitated the first ever capital market transaction for MUDRA (Micro Units Development & Refinance Agency), which focuses on providing low cost loans to microfinance and non-banking financial institutions. This will be a short term transaction with tenure of 1.5 years.

Note: Mudra, or the Micro Units Development & Refinance Agency, is a government initiative to provide cheap loans to companies that finance micro and small companies.

About IFMR Capital

(i) IFMR Capital works at creating a stable and inclusive financial system in India by providing efficient and reliable access to finance for high quality Originators. These Originators in turn reach out to millions of under-served households and businesses across the length and breadth of India.

(ii) IFMR Capital works in five sectors today – micro finance, affordable housing finance, small business finance, vehicle finance and agricultural finance.

(iii) Kshama Fernandes is a CEO of IFMR Capital.

2. Chhattisgarh disburses over Rs 1,800 crore under MUDRA Yojana

Mudra + Chattisgarh

The Chhattisgarh government has disbursed Rs 1, 821-crore loans to several beneficiaries under the Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana (PMMY).

 “In Chhattisgarh, 4,83,792 applications were received for seeking loans under the scheme since its inception,” a senior official in the state’s industry and commerce department said.

 The banks disbursed Rs 1821.50 crore to the beneficaries, the official said, adding that the state government had been encouraging the young entrepreneurs to avail the benefits of the ambitious programme.

3. Government approves conversion of MUDRA into bank 

Mudra

Government of India recently converted MUDRA Ltd into MUDRA Bank. MUDRA Bank thus created is a wholly-owned subsidiary of SIDBI, which will be known as MUDRA (SIDBI) Bank.

Along with this, a Credit Guarantee Fund for MUDRA Units (CGFMU) will also be set up. In the Budget of 2015-16, Credit Guarantee Fund has been allocated with funds worth Rs. 3000 Crore. As per budget 2015-16, MUDRA Bank is to be set up with refinance corpus of Rs 20,000 Crore.

Functions / Roles of Mudra Ltd –

  • The major role of MUDRA Ltd would be in refinancing and developing Micro Enterprises.
  • It will provide funds to Non-corporate small business sector.
  • It will also partner with State/Regional level financial intermediaries to provide finance to small/micro business enterprises.
  • MUDRA Bank will not be the regulator of the micro finance institutions. (As RBI as a regulator for the MFIs registered as the non banking finance companies)

MUDRA loans are available in three categories – For small business

  • Loans up to Rs. 50000/– is available under the ‘Shishu’ category
  • Loans beyond Rs. 50,000 and up to 5 lakh under the ‘Kishor’ category
  • Loans beyond Rs. 5 lakh and up to Rs. 10 lakh under the ‘Tarun’ category
  • Note: Maximum Loan Mudra Bank can grant is Rs. 10 lakh.

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