Mudra loans
government mudra loans

Mudra Loan – All about Pradhan Mantri Mudra Yojana Loan

The Government of India launched loan scheme called Prime Minister Mudra Yojana (PMMY) on eighth April 2015 to stretch out unsecured loans to the non-corporate, small scale business   to fulfill their financing needs. One of the important points of MUDRA loans is to set platform for new entrepreneurs by financing them required amount

What is MUDRA?

Micro Units Development and Refinance Agency Limited is MUDRA full structure made as a organization giving loans up to Rs. 10 lakhs max to the qualified individual  through the Commercial Banks, RRBS, Cooperative Banks, NBFC and MFI and so on. The borrowers can go to nearby banks or apply for loans under the MUDRA scheme or apply online.

The beginning of MUDRA:

The biggest economic sector of the nation after farming includes non-corporate smaller scale business  producing the greater work openings (employment) to be roughly ten crores affecting the life of 50 crore Indians. They are basically occupied with assembling, manufacturing,services , preparing and benefits, and the ventures are generally proprietary or Own Account Enterprises (OAE).This segment plays vital role in economics development , yet there were no solutions for business funding . The MUDRA conspire under PMMY playing tremendous role for increase in business funding, changing them into a powerful instrument of business and GDP development.

Structure of MUDRA:

It was been first accessed by SIDBI as a refinance organization with an approved capital of Rs.1000 crores and a settled up capital of Rs.750 crores. The scope of extending MUDRA is wide with the prime obligation to create and small scale business occupied with approved activities/business. Right now, PM MUDRA Yojana is bringing different banks together to smaller scale level in the cities and state to encourage Micro Finance in the nation.The encouragement to push micro funding by means of MUDRA will not only generate new employment opportunities but also also help small business owner to grow there vertical, indirectly its will lead nations growth

MUDRA Mission:

The MUDRA mission is to encourage individual ideas of business to get into reality by financing them with adequate amount required to start there journey of success

The key advantages of MUDRA loan:

• Micro and small business involve in income generation activities are main focus  

•  The borrowers are not required to give any insurance or security to benefit of Mudra Loan.

• There are no processing charges for Mudra loan.

• The loans can be as term loans, overdraft office, letters of credit or bank ensures, hence fulfilling a wide area of requirements

• The Mudra loan rate of interest is much affordable then other unsecured loan scheme

MUDRA Loan Details:

 There are three Categories of the MUDRA loans dependent on the required amount for business. Apply today at

1. Sishu: This loan is intended for business who are hoping to begin a business or setting up for first time. The maximum loan given  under this class is Rs.50000.

• To give fund to machinery.

• Valid quotation and provider  informations are complusary.

2. Kishor: Under the MUDRA scheme, this classification of loan is focused towards individual hoping to grow their business through the collections of new fund. Along these lines, the loan given under this class will be in range of of Rs.50001 to Rs.5 lakhs. The key requirements for availing this loan are:

• The existing balance sheet report for the past two years.

•  Bank account statements.

•  Income through sales and returns.

•  Technical and financial suitability of the project.

3. Tarun: The third sort of loan under PMMY is for business who are all around settled in and have set up themselves in the business but then searching for additional development or diversification. The loan authorized under Pradhan Mantri Mudra Yojana loan given will be in a range of Rs.500001 to Rs.10 lakhs. This will be the max amount giving under MUDRA Scheme, the requirements are more difficult than the other two loans. Few requirements to avail this facilities are given below:

•               All requirement mentioned above for Kishor Mudra Loan.

•               Address and Identity proof.

•               Caste certificate, if qualified for reservation.

• Project report

Different highlights of MUDRA loan plan can be summarized as:

•               There are three kinds of MUDRA loans.

•               There is no minimum amt of loan.

•               The  max amt of loan is Rs.10 lakhs.

•               There is no security required for the loan.

•               There is no processing charge.

Qualification for MUDRA Loan Application:

Ventures and Business falling under below category are eligible MUDRA loan .

•               All non-corporate non-agri business.

•               Should be from manufacturing , trading and services industry

•               Where the requirement  of amounts will be maximum 10 lakhs or lower.

•               Engaged in allied farming activities since first April 2016.

MUDRA loan Interest Rate:

The financing cost applied on MUDRA loans depend on RBI characterized MCLR (Marginal Cost of Lending Rate)

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