Connect with us

Govt Loan

Mudra Loan: Get Upto 10 Lakh Business Loan Apply Now

Published

on

Mudra Loan: The MUDRA (Micro Units Development and Refinance Agency) loan scheme is an initiative launched by the Government of India to provide financial assistance to micro and small enterprises (MSEs) across the country.

The primary objective of the MUDRA scheme is to promote entrepreneurship, self-employment, and inclusive growth by facilitating access to credit for small businesses, particularly those operating in the informal sector.

PM Mudra Loan Yojana

The MUDRA (Micro Units Development and Refinance Agency) loan is a government initiative in India aimed at providing financial support to micro and small enterprises (MSEs).

Launched under the Pradhan Mantri Mudra Yojana (PMMY), the scheme offers collateral-free loans to individuals, businesses, and enterprises involved in activities such as manufacturing, trading, and services.

MUDRA loans are categorized into three segments based on the stage of business growth and funding requirements: Shishu (up to Rs. 50,000), Kishor (Rs. 50,001 to Rs. 5 lakh), and Tarun (Rs. 5 lakh to Rs. 10 lakh). These loans are provided through various financial institutions such as banks, NBFCs, and microfinance institutions, with the aim of promoting entrepreneurship, self-employment, and inclusive growth.

Free Recharge

Mudra Loan Categories

MUDRA loans are categorized into three segments based on the stage of business development and funding requirements:

  • Shishu: Loans up to Rs. 50,000, targeting micro-enterprises at the initial stage of business.
  • Kishor: Loans ranging from Rs. 50,001 to Rs. 5 lakh, catering to businesses that have expanded beyond the initial stage and require higher funding.
  • Tarun: Loans ranging from Rs. 5 lakh to Rs. 10 lakh, intended for established enterprises seeking further expansion or diversification.

Mudra Laon Specification

  1. Collatoral Free: MUDRA loans are typically collateral-free, meaning borrowers do not need to provide any security or collateral to avail themselves of the loan. This makes the scheme accessible to a wide range of entrepreneurs, including those who may not have valuable assets to pledge as security.
  2. Eligibility: The MUDRA loan scheme is available to various types of businesses, including small manufacturing units, service sector enterprises, and trading businesses. Eligible borrowers may include individuals, proprietorships, partnerships, and entities registered as micro or small enterprises.
  3. Interest Rates: Interest rates for MUDRA loans are determined by the lending institutions participating in the scheme, which include commercial banks, regional rural banks (RRBs), small finance banks (SFBs), cooperative banks, and microfinance institutions. The interest rates charged may vary based on factors such as the borrower's creditworthiness, loan amount, and repayment tenure.
  4. Repayment Tenure: MUDRA loans typically come with flexible repayment options, allowing borrowers to repay the loan amount over a period of time that suits their cash flow and business cycle. The repayment tenure may vary depending on the loan amount and the terms offered by the lending institution.
  5. Application Process: Interested borrowers can apply for MUDRA loans through participating banks and financial institutions. The application process typically involves submitting necessary documents, such as identity proof, address proof, business plan, and financial statements, as required by the lending institution.

The MUDRA loan scheme has played a significant role in promoting entrepreneurship, supporting small businesses, and fostering economic development across India. By providing access to affordable credit and financial assistance, the scheme empowers individuals to start and grow their businesses, create employment opportunities, and contribute to the country's socio-economic progress.

Free Recharge

Mudra Loan Apply Process

  • Visit the selected lending institution's branch office or access their online portal to initiate the loan application process.
  • Fill out the MUDRA loan application form with accurate and complete information. Provide details such as your personal information, business details, loan amount required, purpose of the loan, repayment tenure preference, etc.
  • Attach the necessary documents along with the application form as per the requirements specified by the lending institution.