There would be a loan mela under Mudra scheme on Friday in the district headquarters town here. Mudra Bank concept although has been launched by the Prime Minister on April 4, yet it has not tangibly taken off in Odisha.
Under the initiative of Baleswar MP RK Jena, the Mudra Bank scheme would be launched through a mega event, said bank manager Harekrushna Behera .
The objective of launching the scheme is to extend loan facilities to the unemployed persons looking for self- employment and encourage SME jobs. The scheme is in three categories, suh as Sishu, Kishor and Tarun.
Under the Sishu scheme while one can avail `50,000, under Kishor and Tarun, hassle free loan up to `1 lakh and 5 lakh respectively can be availed. The most attractive and important points are that the bank won’t ask for any collateral securities and no processing charge.
The loan repayment period is 5 years and maximum interest per annum is 12 per cent. Under the scheme, one can avail loan for purchasing auto rickshaw, car, open saloon, beauty parolur, gymnasium, boutique , tailoring , cycle and motor cycle repairing shop and DTP centre .
In the manufacturing sector, like producing incense sticks, pickle, ice cream, bread, handloom, power loom and computerised embroidery, one can avail the loan under the scheme.
The scheme was so far resting idle in the district, while MP Jena has taken initiative to make it functional. He met the Jiji Mammen, CEO – MD of the Mudra (Micro units development and refinance agency) Bank in Mumbai on August 22 last. After discussion about the concept, the MP had a meeting with the lead bank manager here.
“A meeting was convened recently here where 18 banks participated. The banks have agreed to extend loans under the scheme. In the first ever such credit camp, we expect more than 200 persons would be disbursed with the loan amount,” said manager Behera, adding a few banks are dragging their feet apprehending loan recovery.
MP Jena said, “The whole idea is that the poor and unemployed shouldn’t suffer on account of collateral security. It is to empower the unemployed with financial boost and strengthen the MSE sector that the scheme will be launched. This would click both in the urban as well as rural sector. The banks are bound to give loan as per the Mudra guidelines and there is a stringent provision for action against those who refuse to follow the guidelines.”