Mudra Loans
MUDRA Loan is offered under the Pradhan Mantri Mudra Yojana (PMMY). MUDRA stands for Micro-Units Development and Refinance Agency. Under this scheme, borrowers can avail business loans ranging from Rs.50,000 to Rs.10 lakh on the basis of the Sishu, Kishor, and Tarun categories.
Micro Units Development and Refinance Agency Bank is a public sector financial institution in India. It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs. It was launched by Prime Minister Narendra Modi on 8 April 2015.
Mudra Loans Details
Benefits of Mudra Loan
- Loan amount up to Rs. 10 lakh
- Collateral-free loans
- Low interest rates with even lower processing fees
- Loan covered under Credit Guarantee Schemes from Govt. of India
- Can be used as term loans, working capital loans, and overdraft facilities
- All Non-farm enterprises, i.e. small or micro firms engaged in the income-generating activities can avail Mudra loans
- Mudra loans can also be availed by people belonging to SC/ST category at concessional interest rates
- Loans for Women Entrepreneurs at lower interest rates
List of Businesses covered under Mudra Scheme
- Commercial Vehicle - Mudra finance for machinery and equipment can be used to purchase commercial transport vehicles like tractors, auto-rickshaws, taxis, trollies, tillers, goods transports vehicles, 3-wheelers, e-rickshaws, etc.
- Service Sector Activities - Starting businesses of salons, gyms, tailoring shops, medical shops, repair shops, and dry cleaning and photocopying shops, etc.
- Food and Textile Product Sector Activities - Various activities involved in the respective sector, such as papad, achaar, ice cream, biscuits, jam, jelly, and sweets making, as well as for agriculture produce preservation at rural level
- Business activities for Traders and Shopkeepers - Setting up shops, service enterprises, trading and business activities, and non-farm income-generating activities
How Should I Apply For Mudra Loan?
Ensure that the necessary documents are kept ready. The main documents you will require are your ID proof, address proof, and business proof.
Approach a lender who is enrolled under the MUDRA scheme and fill up the application form.
Submit the necessary documents.