Mudra loan is a new kind of business loan. Our Honorable Prime Minister Narendra Modi started this scheme. Mudra loan is also known as Prime Minister Mudra Loan Scheme. Here we have listed all the details about Mudra loan and how to get a Mudra Loan to finance or refinance our business.
What is MUDRA Loan
Micro Units Development and refinance Agency (MUDRA) is a Non Banking Finance Company (NBFC) initiative of Micro Enterprise sector is our country. Pradhan Mantri Mudra Yojna (PMMY) has desiged three types of product or scheme under MUDRA. These three types of MUDRA is as below:
- Shishu: Covering Loan up to 50,000/-
- Kishore: Covering Loans from 50,000/- to 5,00,000/-
- Tarun: Covering Loans from 5,00,000/- to 10,00,000/-
Purpose of Mudra Loan
The main purpose of government to grant this loan is to insure sustained income and employment generation. You may approach any of your nearest bank asking these loans:
- Business loan for shopkeepers, traders, vendors and entrepreneurs- Like Saloon or Beauty Parlor, Tailoring Shop, Medicine Shop, Courier Agency, Restaurant, Gymnasium, Automobile repair shop etc
- Equipment finance for your micro units- Small or medium scale production, manufacturing or assembling equipment like Automation setup, Equipment required for Cotton Mill, Sugar Mill, Dairy, Food Processing units, cloth manufacturing etc.
- Transport vehicle loans- You may ask these loans to purchase a three wheeler, Auto Rickshaw, small goods transport vehicle, passenger cars, taxi, battery rickshaw etc.
- Working capital loans through Mudra Cards-Financial support like for Self Help Groups (SHGs) through Mudra cards credit limit of 1 Lakh is given.
Eligibility to get a Mudra Loan
Mudra loan is better then Personal Loan or Home loan or Car Loan . This is the reason most of the businessman and entrepreneurs and self employed person look for a Mudra Loan when then need the funds. Below is the eligibility criteria to get a Mudra Loan:
|Loan Category||Loan Amount||Eligible Business|
|Shishu||Upto 50,000/-||Only Startups|
|Kishore||50,000/- to 5,00,000/-||Financial assistance to a running business|
|Tarun||5,00,000/- to 10,00,000/-||Financial assistance for expansion of an established business|
Eligibility of application is defined as below:
- Applicant should be a shopkeeper
- He or she shall be an artisian
- A vendor of of fruit or vegitables
- Business person should be running a small business unit
Application Process to get Mudra Loan
Applicant of a this loan need a business plan to start with. You have to approach your nearest public sector bank or private sector bank or other lender who provide this loan. The lender will ask your KYC documents along with filled loan application form.
Upon submission of all the required documents, your lender will approve your loan request and disburse the loan amount.
As the repayment of loan is easier so you should pay the loan as per schedule of payment. Loan interest rate is also lower compared to other business loan. As this scheme is sponsored by government, so you may avail more facilities through the loan and maintain a sustainable growth of your business.
We shall discuss more about it in our next post. Keep visiting our blog for more details on this. Also do not forget to share this on Facebook and Twitter.