Part of: Prelims and GS III – Economy
Context Recently, Khadi and Village Industries Commission (KVIC) launched a unique Scheme called SPIN (Strengthening the Potential of India).
About SPIN scheme
- The SPIN scheme aims at infusing self-sustainability in the Indian pottery sector.
- The Scheme enables the registered potters to get a direct loan from the banks under Pradhan Mantri Shishu Mudra Yojana.
- Under this Scheme, KVIC is acting as a facilitator for financial aid to potters through RBL bank and also providing training to the artisans, opting for this scheme.
- There will be no financial burden on the exchequer and the loan will be repaid by the potter in easy installments.
- It is a no-subsidy program.
- Under the scheme, 780 potters from Uttar Pradesh, Bihar, Rajasthan and Jharkhand have registered for financial assistance from the bank to begin their own business.
What is Pradhan Mantri Mudra Yojana?
- The scheme launched in April, 2015 to provide formal access of financial facilities to the Non Corporate Small Business Sector.
- Objective: To promote & ensure bank finance to unfunded segments of the Indian economy.
- These loans are classified as MUDRA loans under PMMY.
- These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
- Types of loans: Loans are given as per the stage of growth and funding needs of the beneficiary micro unit.
- Shishu: covering loans up to Rs. 50,000
- Kishore: covering loans above Rs. 50,000 and up to Rs.5 lakh.
- Tarun: covering loans above Rs. 5 lakh and up to Rs.10 lakh.