Bank of Maharashtra, Mudra Seal Pact to Finance Small Businesses

New Delhi: Bank of Maharashtra and Mudra Bank have signed an agreement to finance new entrepreneurs and small businesses.

To provide credit facilities to small business, the central government aims to facilitate credit up to Rs 1 lakh crore under the Mudra (Micro Units Development and Refinance Agency) scheme in the current year.

"Bank of Maharashtra and MUDRA Bank signed a general refinance agreement to finance new entrepreneurs and small business," Bank of Maharashtra said in a statement.

Under the new scheme, there are three categories of loans - 'Shishu' (loan of up to Rs 50,000), 'Kishor' (loan above Rs 50,000 up to Rs 5 lakh) and 'Tarun' (above Rs 5 lakh and up to Rs 10 lakh) - that will be sanctioned and disbursed by banks, it said.

The amount will be refinanced through Mudra Bank, it added.

Bank of Maharashtra chairman and managing director S Muhnot said the bank has already started financing new entrepreneurs/small business and sensitized its field functionaries on extending finance under the scheme.