Ola Rodinhooders !
Just before I begin on the core topic, this being my first post on Rodinhoods, I wish to convey thanks to Alok & Asha for setting up this nice & simple platform, which has been helping me since quite a while now, though I recently registered myself here. It’s been very fruitful to read several posts that have cleared several notions for me with respect to starting-up
Now, the question that I have – I came across this scheme (sources shared below) Pradhan Mantri Mudra Yojana, launched by the GoI in April, 2015 targeted towards SMEs. The funding is categorized as follows depending on your loan requirements –
a) Shishu: covering loans up to ₹50,000
b) Kishore: covering loans above ₹50,000 and up to ₹5,00,000
c) Tarun: covering loans above ₹5,00,000 and up to ₹10,00,000
Although it seems like a good move by the Government aiding thousands & lakhs of enterprising individuals, I just wanted to take a first hand advice of anyone who has opted for funds from them (be it for Capex, Working capital, Seed capital etc), the interest rates that prevail on for this & which Financial institution (in Mumbai preferably) would be the best (rather convenient) to deal with & not get duped much on any ad-hoc/hidden charges
Also, I’m not entirely sure how the collateral free mechanism would work in this scheme, so anyone who can share their 2 cents on this too, I would highly appreciate. In a nutshell, please share your experience regarding this scheme, if availed 😀 My intent of knowing this is to identify if this scheme could be a good source to generate funds for an idea I wish to give shape to, backed with some skin of my own in it 🙂 (Since it involves asset purchase)
Have discussed my idea with some VCs/Angel networks and have garnered their interest on investing in it, though some took a back step, claiming conflict of interest 🙂 while some showed interest in the concept & the numbers, have requested a PoC given that I highlighted some nice execution challenges which I’m all set to take on 🙂
[ Yes, I know I’m being too ‘secretive & stuff’ about this whole idea thing, currently is irrelevant to my posted question, but as things shape up, I would soon come back to the community for seeking valuable advice, having entered the ‘Doers’ stage after surpassing my ‘Thinkers’ stage 🙂 ]
Advance apologies if my responses are a tad late to this post, I’m juggling & sorting many things for now & being running much ( Yes, Half Marathons too, a Half-Marathoner in the house ! 😀 )
Thanks in advance !
Cheers,
DDB
Source:
asha chaudhry
hey devesh,
do you have a twitter handle that i could mention while tweeting this query?
Devesh Bhuwad
Hi Asha,
Thanks for responding. Here’s my twitter handle
https://twitter.com/deveshbhuwad
Best Regards,
Devesh Bhuwad
Abhinav Gupta
Hi Devesh –
Although this Pradhan Mantri Mudra Yojna was just announced – there is a similar scheme which has been around for years. The name is CGTMSE (https://www.cgtmse.in/)
It’s a wonderful scheme for manufacturing industries under which you get collateral free loans for your venture upto Rs. 1 crore. However, the assets generated out of the loan you take are to be hypotheticated with the bank for security purpose. Also the bank can ask you to put a margin money of at-least 15% of the value of the asset you want the loan for. Example – you want to buy a machine costing Rs. 10 lakh – the bank will finance it to the tune of 8.5 lakh under this scheme and the balance has to come from you.
You will have to pay a fees to avail this scheme (<1%) and it’s quite simple. However, the discretion to sanction your loan under this scheme is completely with the bank. They might ask for some documents which usually companies who are at-least in 2-3 years in business have. (Ex. CMA Data, EM-II, Risk rating report etc) but if you need a loan of less than 10 lakh – it’s simpler since the sanctioning power is with the branch manager of even a smaller branch. Also, please approach a Government bank – it will be easier 🙂
I hope I could help you find some answers – let me know if you need any more info.
Cheers,
Abhinav
Alok Rodinhood Kejriwal
Whoa….Another great example of govt communication and the mess it creates…
Bharat Agrawal
As inquired by me, the bank currently have notification and guidelines for the first level i.e Shishu….for upto 50000. The banks are charging near to their base rate for the first level. For example, you can receive loan for 10% for your business without any collateral. Mudra bank is setup to act as a fund for the banks to share the risk. The banks after giving loans to individuals (mind this it is not for companies), can pass this portfolio to Mudra bank to refunding themselves. Apart from PSU some microfinance companies have also been authorized to perform the task. Basically the purpose of Mudra loan to create repetitive cash centers so that entrepreneurs have access to money at a lower cost.