Explain the following terms/concepts.
1) Udyami Mitra
1. This is the portal launched by SIDBI to improve the accessibility of credit and handholding services to MSME’s.
2. Under this portal, entrepreneurs can apply for a loan without physically visiting any bank branches.
3. The entrepreneurs can select and apply for preferred banks.
4. They can select a suitable branch, track their application status, and avail multiple loan benefits.
1. KVIC was established to take over the work from All India Khadi and Village Industries Board.
2. KVIC is working for planning, promotion, and production of Khadi and setting up of village and rural industries in India.
3. It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in rural areas.
3) World Bank
1. The World Bank is an international organization formed to provide finance, advice, and research to developing nations.
2. It was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF)
3. The headquarter of the World Bank is in Washington DC.
4. It provides financial as well as technical assistance to the member countries of the world.
5. It comprises two institutions namely the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
1. Self Help Group (SHG) is a voluntary association.
2. It is a small homogeneous group of people who come together with the objective of creating a common fund through small savings and meet members’ emergency needs by providing collateral-free loans at a reasonable rate.
3. Many SHG is linked to banking institutions for getting micro-credit.
4. All decisions are taken collectively by SHG members.
5) Collateral free loan
1. Collateral free loans are SHGs small loans provided to poor individuals for undertaking Self-employment projects.
2. Loans are given on the principle of mutual trust and either minimum or no documentation.
3. The rate of interest generally charged are higher than the interest charged by banks.
4. It saves the poor individuals from the clutches of local money lenders.