State Bank of India
18:35
Meeting With Finance Minister
Meeting With Finance Minister
31.07.2018
All India Bank Officers Confideration
Circular No:2018/50
Source:AIBOC
Showing posts with label mudra loan. Show all posts
Showing posts with label mudra loan. Show all posts
Wednesday, 1 August 2018
Thursday, 21 June 2018
Tuesday, 24 May 2016
Stand up India scheme
07:32
Stand-Up India - FAQs
Stand-Up India - FAQs
1] What is the genesis of "Stand-Up India" Scheme?
The "Start-up India Stand-Up India" initiative was announced by the Hon'ble Prime Minister in his address to the nation on August 15, 2015 to promote bank financing for green field enterprises promoted by SC/ST/ Women entrepreneur The scheme would be operated through 1.25 lakh bank branch network of scheduled commercial banks across the country.
2] What is the objective of "Stand-Up India" Scheme?
The objective of the Stand-Up India scheme is to facilitate bank loans between 10 lakh and 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.
3] What is the purpose of the loan under "Stand-Up India" Scheme?
The scheme is for setting up a new enterprise in manufacturing, trading or services sector by SC/ST/Women entrepreneur.
4] What are the schemes for loan requirement upto 10 lakh?
For loans below 10 lakh, banks are already lending under their existing schemes. Further, MUDRA Ltd. also operates 3 schemes namely Shishu/Kishore/Tarun through banks for loans upto 10 lakh. Please visit www.mudra.org.in for further details.
5] Who are the target clients under Stand-Up India Scheme / what kind of borrowers are eligible for loans?
SC/ST and/or Women entrepreneurs setting up new enterprises are eligible for availing loans under Stand-Up India Scheme. Typically projects in the manufacturing, trading and service sector would be eligible for coverage under the scheme.
6] What will be the nature of loan under the Stand-Up India Scheme?
Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh representing upto 75% of the project cost would be eligible
7] What is the size of the loan under the Stand-Up India Scheme?
Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 100 lakh would be eligible
8] What is the rate of interest charged under the Stand-Up India Scheme?
The rate of interest would be lowest applicable rate of the bank for that category (rating category) not to exceed (base rate (MCLR) + 3%+ tenor premium).
9] What will be the security requirement under the Stand-Up India Scheme?
In addition to mortgage/hypothecation of Primary Asset acquired out of loan, the loan may also be secured by collateral security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL) as decided by the banks.
10] Who are the eligible lending institutions for extending loans under the Scheme?
All branches of Scheduled Commercial Banks located across the country.
11] What is the repayment tenure under the Scheme?
The repayment period of the composite loan is to be fixed depending upon nature of activity and useful life of assets purchased with bank loan but not to exceed 7 years with a maximum moratorium period of 18 months.
12] What are the Salient Features of the Credit Guarantee Fund Scheme for Stand-Up India Loans (CGFSIL)?
Eligibility - Stand-Up India Loans of over 10 lakh and upto 100 lakh extended by eligible Lending Institution(s) to an eligible borrower on or after entering into an agreement with National Credit Guarantee Trustee Company (NCGTC). Guarantee Fee - Annual Guarantee Fee (AGF) of 0.85% p.a. on the credit facility sanctioned (comprising term loan and / or working capital facility).
Guarantee Fee shall be paid upfront to the Trust by the eligible institution availing of the guarantee and to be shared equally between bank and the borrower.
13] How is the Stand-Up India Scheme different from the SMILE Scheme?
SMILE Scheme is operated only through SIDBI for investment in projects coming up in 25 identified sectors under the Make in India programme for existing and new units. The support is in the nature of quasi equity and term loan on relatively soft terms, with the minimum term loan size for new units at 25 lakh. Stand-Up India scheme is proposed to be operated through 1.25 lakh bank branches in the country. The loans would be above 10 lakh and upto 100 lakh specifically for SC/ST/Women entrepreneurs setting up green field projects.
14] How is the Stand-Up India Scheme different from Start Up India Scheme?
Stand-Up India Scheme is intended to support SC/ST/Women entrepreneurs to set up a green field projects through bank branches in India while Start Up India Scheme aims to boost innovative and technology led enterprises for new/existing enterprises.
15] What will be the other benefits under the Scheme?
Apart from linking prospective borrowers to banks for loans , the web portal designed by SIDBI for Stand- Up India Scheme also provides handholding support through a network of agencies engaged in training, skill development, mentoring, project report preparation, application filling, work shed/utility support services, subsidy schemes etc.
16] What is the mechanism for identification of the beneficiary under the Scheme?
The beneficiaries could be walk-in customers for a bank, online applicants or trainees from various government and non-government agencies engaged in providing vocation training, Entrepreneurship Development Programs, Financial training etc.
17] I am house-wife and have undergone a beautician course. I want to open my own beauty parlour. Can I get loan under the Scheme?
Stand-Up India Scheme is a special scheme for women entrepreneur. Therefore, you can avail the facilities under the scheme as per your requirements provided the composite loan amount ranges between 10 lakh to 100 lakh. You may approach a bank branch nearest to you for more details or access the Stand-Up India portal for more details.
18] I belong to the SC/ST category and currently unemployed. I want to start my own business. Can I get loan under the Scheme?
Composite Loans between 10 lakh to 100 lakh for setting up a green field project is eligible for coverage under Stand-Up India Scheme subject to compliance with other requirements of the bank under the scheme. Kindly approach your nearest bank branch or access the Stand-Up India portal for more details. (Portal Address to be given)
19] What is Handholding Support?
Any new entrepreneur requires guidance in his endeavor to set up his or her business enterprise starting from training to filling up loan applications as per bank requirements. This portal facilitates by providing step by step guidance for connecting to various agencies with specific expertise viz. Skilling Centres, Mentorship support, Entrepreneurship Development Program Centres, District Industries Centre, together with addresses and contact number.
20] How do I get handholding support?
You may navigate through the portal or seek assistance from connect centre nearest to you to help you identify the nature of handholding support required. Broadly handholding support has been segregated in 7 areas of expertise viz. Skilling (Vocational), Financial Literacy training, Entrepreneurship Development Program, Mentoring, Project Report Preparation, Loan Application filling, Work sheds from DICs and Margin Money for Subsidy Support.
21] Do I have to pay for the training programs? If so, how much
. Yes. You have to pay for the training program to the agency directly as per their applicable fee structure.
22] Do I have to pay for registering on the Portal.
Registration on the portal is free of cost.
23] How does this portal help me?
This portal is a transparent step by step guide to setting up of your business enterprise.
24] In case my proposal is not approved what should I do?
Please get in touch with your preferred banker (chosen by you) to understand why the proposal was not approved and based on that take corrective action to make the proposal credit worthy.
25] In case I have collateral do I need to compulsorily opt for credit guarantee cover for the loan under Stand-Up India?
No. There is no compulsion for securing the loan only by way of Credit Guarantee Cover. You may opt for securing the loan by way of collateral security also. Please discuss this aspect with your banker.
Source:BankingNews
Sunday, 3 April 2016
What is MUDRA Bank?
What is MUDRA Bank?
Micro Units Development and Refinance Agency Bank (MUDRA Bank), is a new institution setup by the Government of India for development of micro units and refinance of MFIs to encourage entrepreneurship in India & provide the funding to the non corporate small business sector.
MUDRA Yojana had announced by the Finance Minister in Parliament during Union Budget for FY 2016.
MUDRA Bank will need two type of product like refinance for the micro units haveing loan requirement from Rs 50 thousands to 10 lakhs and support of Micro Finance Institutions (MFI) for on landing. MUDRA will refinance to micro business under the scheme of Pradhan Mantri MUDRA Yojana.
What is MUDRA Scheme/ Yojana?
Under the guideline of Pradhan Mantri MUDRA Scheme, MUDRA Bank has launched its three initiative product and its name is SHISHU, KISHOR & TARUN to signify the stage of growth and funding needs of the micro units or entrepreneur.
MUDRA Bank is refinancing through State level institutions, MUDRA will deliver the loan through NBFCs, MFIs, Rural Banks, District Banks, Nationalize Banks, Private Banks, Primary Lending Institutions and other intermediaries.
Source:http://mudrabank.com/
Wednesday, 2 March 2016
SIDBI Bank
21:41
Despite high target, Mudra refinance to remain low
Despite high target, Mudra refinance to remain low
Even as the government has set a lofty target of Rs 1,80,000 crore worth loan sanction under Mudra Yojna, the actual refinance by Mudra, the non-banking finance arm of Small Industries Development Bank of India (SIDBI), will be not more than Rs 4,000 crore this year.
In the 2015-16 budget, the government had allocated Rs 20,000 crore for Mudra refinance.
So far, Mudra has sanctioned about Rs 3,000 crore under refinance, while the total disbursement has been close to Rs 2200 crore, said Jiji Mammen, chief executive officer, Mudra.
"This year, we are expecting total refinancing to be close to Rs 4000 crore," according to Mammen.
Notably, the stringent conditions attached with Mudra refinance has hindered it popularity. While banks get loans from Mudra at 6.72%, they are required to lend it at base rate.
However, in general, loans to small and medium enterprises are given at 1-2% higher than base rate by banks. Secondly, MFIs cannot earn spreads over 10% respectively under Mudra refinance scheme, whereas RBI allows MFIs to have spread between 10-12%, depending on its size.
"Taking refinance from Mudra is totally under the discretion of banks, and it depends on their liquidity condition and cost of fund. Moreover, there are certain conditions attached with Mudra refinance, which banks find restrictive,' said Mammen. In order to make Mudra a viable business model, recently the Cabinet approved conversion of MUDRA into a bank.
Mudra loans encompass three categories -- 'Shishu', 'Kishor' and Tarun' to signify the stage of growth and development and funding needs of the beneficiary micro unit entrepreneur. Shishu covers loans upto Rs 50,000, Kishor covers loans above Rs 50,000 and up to Rs 5 lakh and Tarun covers loans above Rs 5 lakh and up to Rs 10 lakh.
Thus, almost all the loans by MFIs, which are of the value of up to Rs 50000, are re-categorized as Mudra loans, even though there has been no refinance from the NBFC arm of Mudra. The government has partnered with about 36 MFIs, 17 public sector banks and 25 NBFCs, among other entities who have reclassified their loans as Mudra loans.
Thursday, 8 October 2015
PMMY
06:33
State Bank Of India insists on Aadhaar for loan under Mudra
State Bank Of India insists on Aadhaar for loan under Mudra
Despite the Supreme Court reiterating that Aadhaar cannot be made mandatory, a nationalized bank is insisting that small entrepreneurs seeking assistance under the Pradhan Mantri Mudra Yojana produce Aadhaar card.
AM Muthillath, 36, a resident of Vidyaranyapura and owner of a garment unit, recently applied to the State Bank of India's Jalahalli %East branch for assistance under Mudra (Micro Units Development and Refinance Agency) scheme. However, his application was rejected as he did not have an Aadhaar card. This despite his having other recognized identity and address- proof documents.
He had applied for Rs 50,000 loan at 1% interest under the scheme.
Muthillath, who also runs an NGO, Sarvajana Bharat, said, "When the government and the judiciary clearly say procuring Aadhaar number is optional, why is the bank making it mandatory? Isn't it a violation of the SC ruling?" When contacted, Rajni Mishra, chief general manager of SBI-Bengaluru circle, said they are only following the rules set by the Union government. "Those seeking assistance under Mudra scheme need to have an Aadhaar number and that's mandatory," she said.
Somashekar VK, managing trustee of Grahak Shakti, a consumer's right forum, terms the SBI decision a blunder. "Linking Aadhaar to public services is not mandatory yet. The government continues to violate the Supreme Court ruling on the same. People who are told can get a written statement from the bank and seek relief in the court of law. We are willing take up the matter forward," he pointed out.
Source:BankingUpdates.
Friday, 2 October 2015
mudra loan
19:40
IMMENSE PRESSURE ON OFFICERS: MUDRA LOANS / JANDHAN LOANS / DE DUPLICATION
IMMENSE PRESSURE ON OFFICERS:
MUDRA LOANS / JANDHAN LOANS / DE DUPLICATION
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AISBOF have sent a detailed communication to the Management on the captioned subject (AISBOF circular no 111 dated 30.09.2015). A copy of the same is enclosed for information.
All our members are requested to await further developments in this regard and also brought the incidents of undue pressure/instructions to sanction loans without following the laid down instructions of Banks, abusing language and other incidents immediately in the notice of respective office bearers to resist such happenings at all levels. We must fight for work-life balance collectively and start "MISSION R & D (Respect & Dignity)".
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No.6531/57/15 DATE: 30.09.2015
To,
The Deputy Managing Director & CDO,
State Bank of India,
Corporate Centre,
Madame Cama Road,
MUMBAI - 400 021.
Dear Sir,
IMMENSE PRESSURE ON OFFICERS:
MUDRA LOANS / JANDHAN LOANS / DE DUPLICATION
The Government of India has been introducing various welfare schemes like the Jandhan, PM Suraksha Bima Yojana, PM Jeevan Bima Yojana, Sukanya Suraksha Yojana, Atal Pension Yojana, etc. Our Officers have exceeded all the given targets well within the time schedule, which fact has been acknowledged and appreciated by the Hon’ble Prime Minister himself.
2. Now, the Pradhan Mantri Mudra Yojana (PMMY) campaign has been introduced to ensure flow of credit to small and micro entrepreneurs. While we whole heartedly appreciate the intention behind the scheme, we do not agree with the manner and the haste with which the officers are forced and threatened into achieving the huge targets within an unimaginably short span of time, giving a go bye to all norms.
3. As you are aware, the process of Mudra loans, like any other loans involve identification of borrowers, KYC, due diligence, pre and post sanction inspection, documentation, sanction and disbursement. Even keeping aside one’s regular seat work, not more than three or four borrowers can be handled in a day. Any lapse in processing etc., will lead into disciplinary action against the officer, apart from the account turning into NPA, jeopardizing the interests and the image of the Bank.
4. In this connection, we have been receiving the following queries:
• There is no separate master circular in respect of Mudra loans.
• The instructions are silent on Inspection, CIBIL. Assets & Liability statements, opinion reports etc., under the documents to be obtained column.
• Frequency of stock statements, insurance coverage for the assets financed, need for a project report (Instruction says stamp duty can be treated as project cost itself) etc., are not clear.
• CGTMSE coverage not available for loans sanctioned to retail/whole sale trading.
• Loans above Rs.50,000/- to be sanctioned only in LOS. SME LOS takes almost one day for a loan and all FO’s are not familiar with SME LOS.
5. We are given to understand that immense pressure is exerted on officers to issue sanction letters straight away and complete all the formalities later. Oral instructions are being given to sanction the loans at the Branch level itself. We are afraid that loans may be given to all and sundry just to achieve the targets. The loans are sourced by the CSP’s where the accountability lies with the Field Officers. There is confusion whether such loans are not to be sent to SMECC for sanction?
6. Along with the ‘Mudra Loans’ there is tremendous pressure to sanction Rs. 5000/- overdraft under Jandhan. This is also in addition to the ‘De Duplication’ work which is monitored by another Department. Multiple departments are issuing multiple Instructions with their own priorities.
7. Under the circumstances officers are under extreme stress and pressure leading to frustration because of the following:
a) The instructions issued are under a threatening tone. We fail to understand that when officers are already doing their best, why such threatening tone is adopted as is done with slaves. I shall collect all the messages/instructions and forward the same, which will be a shocking revelation as to how such language can be used with officers who have stood with the Bank for all these years and that too uniformly in most of the circles, with scant regard to their age and experience?
b) Oral instructions are being given to somehow achieve the targets in the given span of seven days. It is common knowledge that the scheme was introduced long ago. But suddenly, targets are fixed and officers pressurized and threatened. Why were these loans not phased over a period of time?
c) What should the officers do about systems and procedures, if such unrealizable targets are to be achieved in such a short span? Why only oral instructions are being given and every controller/executive refuses to give written instructions. At a later date if loans go bad, the processing/sanctioning officers will face disciplinary action and not the executives giving oral instructions.
d) Strict instructions are being issued from all executives that all officers should work on all Sundays, holidays, Saturday off days, and festival days. In some circles attendance of those attending/not attending being taken. In some other circles, threat of explanation/disciplinary action being issued. We fail to understand as to why such sudden outburst of Inhuman behavior against officers. Forcing officers to work on all holiday’s non-stop will reduce the productivity and prove detrimental for the officers morale and lead to a breakdown of their family life and health.
e) Another important issue arising out of such a situation where the officers are required to attend to so many unscheduled work outside the basket of KRA’s selected by them under CDS for their performance appraisal, is that they will ultimately land up underperforming/under achieving their targets under CDS. This will have a detrimental effect on their career path vis-Ã -vis officers who do not have such targets. This can be a dangerous situation for such officers.
f) The BCG while conducting their “Manpower Planning” in our Branches have not factored or taken into account such high pressure unscheduled exigencies’ that occur round the clock and throughout the year. This has lead to projection of a unrealistic manpower positions by the BCG and does not reflect the true and extreme staff shortage situation in all the circles. The BCG may not agree but all the Branches are suffering in silence leading to depreciation in the quality of work and short cut methods being adopted to circumvent the problem and complete the targets under the fear of a water tight career development scheme (CDS).
8. We are not averse to implementing any schemes. We have been achieving all the targets from time to time. We request you to advise the concerned to adopt a more officer friendly human approach taking into account the constraints, social, personal and family obligations and the dignity, self respect and the sentiments of the officers and not doubt their sincerity towards the Bank. We also request that the implementation of performance evaluation through the basket of KRA’s under CDS be put on hold till all such targets are achieved, else may affect their career.
9. Sir, the above points raised are the reflection of the sentiments and hurt feeling of all officers across the country and hope that they would be conveyed to the concerned who would also take the same in the right spirit in the best interests of the Human resources of Bank and for a healthy Industrial Relations atmosphere.
Please do the needful.
Thanking you,
Yours faithfully,
Y.SUDARSHAN
GENERAL SECRETARY
Source :BankingUpdates
Monday, 28 September 2015
rural banking
07:56
Government's intent not to give baksheesh to people: FinMin
Government's intent not to give baksheesh to people: FinMin
Confident about MUDRA loan scheme benefitting the weakest section of society, Finance Minister Arun Jaitley on Sunday said the government’s intent is not to give any baksheesh (tip) but to make people economically self-sufficient.
In a Facebook post, Jaitley said, “The model of the present government is not to give baksheesh but to enable people to make them economically self-sufficient and live a life of dignity. MUDRA scheme will be a game changer over the next few years.”
Jaitley, last week, launched a mega credit drive under the MUDRA scheme, under which banks, NBFCs and MFIs will provide loans between Rs 50,000 to Rs 10 lakh to the unfunded sections of the society.
“India may not be able to provide employment to all but our economy will be strong enough to provide resources to the weakest to enable them to be self-employed and self-dependent,” Jaitley said in the post.
Already Rs 24,000 crore of loans have been distributed to 3.7 million beneficiaries under the scheme.
“I anticipate that this year the number of beneficiaries crossing 15 million. This number will increase year after year,” the finance minister said.
There are estimated 240 million families in India. Thus, at the bottom of the economic structure were these unfunded sections of the society, he said.
They were dependent upon money lenders for loan on an exploitative rate of interest (24-36 per cent). India’s industrial, service and agricultural sector are still not strong enough to absorb them in the employment, he said.
There are 5.7 crore entrepreneurs in the unorganised sector who are responsible for creating 11 crore jobs.
Jailtey said MUDRA Yojna will continue for the next few years.
"The targeted beneficiaries are six crore people who need to be developed into India's small entrepreneurs. They will all be issued Debit Cards, which will allow them withdrawal of money through ATMs. These people cannot afford securities and hence the requirement of furnishing securities will not applicable for loans to them," he said.
These loans, he added will "not be given on the strength of personal and political connections" but linked to the business proposals of these potential entrepreneurs.
In Mundra Yojna, there are 120 partners which include public sector banks, private sector commercial banks, regional rural banks, NBFCs and MFIs.
In the current financial year, a total amount of Rs 1.22 lakh crore will be given to these unfunded sections of the Indian society, Jaitley said.
The three categories of loans are: Shishu - upto Rs 50,000; Kishore - Rs 5 lakh and Tarun - Rs 10 lakh.
The Finance Minister said past experience has indicated that the recovery rate for such micro finance and similar loans is exceedingly high and the defaulter are few.
Source :Business Standard.
Source :Business Standard.
