Introduction:
Launched by Prime Minister of India in April’15, Pradhan Mantri Mudra Yojana was initiated to provide loans up to Rs.10 lakhs to the non-corporate, micro/small enterprises. Their loans are classified as MUDRA loans under the scheme.
Micro Units Development & Refinance Agency Ltd. (MUDRA) is an institution set up by the Government of India to provide funding to micro enterprises which help achieve economic success and financial stability. Mudra loans are given by commercial banks, small finance banks, cooperative banks, and NBFCs. The borrower may approach any of the lending institutions or can apply through online portals.
Under MUDRA scheme, they offer three products, i.e. 'Shishu', 'Kishore' and ‘Tarun’ as per the stage of growth and funding requirements of the beneficiary micro unit. These schemes cover loan amounts as below:
• Shishu scheme covers loans up to Rs 50,000
• Kishor scheme comprises loans above Rs 50,000 and up to Rs 5 lakh
• Tarun scheme comprises loans above Rs 5 lakh and up to Rs 10 lakh
Mudra loan eligibility:
Loans are given to all non-farm income generating enterprises in manufacturing, trading and services whose credit needs are below Rs 10 lakh.
Documents required for the Mudra loan:
• Valid photo identity proof
• Current address proof
• Proof of income - Latest ITR Financial Docs of Income
• Last six months Bank statement
• Loan application form
• Ownership proof of residence/office
• Evidence of continuity of business
• Trade references
An application form is available at the lending institutions for the scheme. It needs to be submitted along with the documents for the approval of the loan. Banks cannot ask for collateral but the repayment period for the loan is of 5 years.
Mudra Card:
Mudra loans provide working capital facility as a cash credit agreement. MUDRA card is a debit card issued against the loan account. The account holder can make use of MUDRA card in many withdrawal and credit facilities, to manage the working capital limit effectively and keep the mudra loan interest rates burden a minimum. MUDRA card will also help in digitalisation of MUDRA transactions and will create a credit history for the borrower. MUDRA card is like a RuPay card that can be functioned across the country for withdrawal of cash from any ATM/micro-ATM.
Conclusion:
MUDRA .is a government financing scheme to provide a business loan to new small businesses in India. To get a business Mudra loan under PPMY, the candidate has to contact the nearest public/ private sector bank. The interest rate will be fixed by the institutions time to time-based on guidelines from the RBI.
Launched by Prime Minister of India in April’15, Pradhan Mantri Mudra Yojana was initiated to provide loans up to Rs.10 lakhs to the non-corporate, micro/small enterprises. Their loans are classified as MUDRA loans under the scheme.
Micro Units Development & Refinance Agency Ltd. (MUDRA) is an institution set up by the Government of India to provide funding to micro enterprises which help achieve economic success and financial stability. Mudra loans are given by commercial banks, small finance banks, cooperative banks, and NBFCs. The borrower may approach any of the lending institutions or can apply through online portals.
Under MUDRA scheme, they offer three products, i.e. 'Shishu', 'Kishore' and ‘Tarun’ as per the stage of growth and funding requirements of the beneficiary micro unit. These schemes cover loan amounts as below:
• Shishu scheme covers loans up to Rs 50,000
• Kishor scheme comprises loans above Rs 50,000 and up to Rs 5 lakh
• Tarun scheme comprises loans above Rs 5 lakh and up to Rs 10 lakh
Mudra loan eligibility:
Loans are given to all non-farm income generating enterprises in manufacturing, trading and services whose credit needs are below Rs 10 lakh.
Documents required for the Mudra loan:
• Valid photo identity proof
• Current address proof
• Proof of income - Latest ITR Financial Docs of Income
• Last six months Bank statement
• Loan application form
• Ownership proof of residence/office
• Evidence of continuity of business
• Trade references
An application form is available at the lending institutions for the scheme. It needs to be submitted along with the documents for the approval of the loan. Banks cannot ask for collateral but the repayment period for the loan is of 5 years.
Mudra Card:
Mudra loans provide working capital facility as a cash credit agreement. MUDRA card is a debit card issued against the loan account. The account holder can make use of MUDRA card in many withdrawal and credit facilities, to manage the working capital limit effectively and keep the mudra loan interest rates burden a minimum. MUDRA card will also help in digitalisation of MUDRA transactions and will create a credit history for the borrower. MUDRA card is like a RuPay card that can be functioned across the country for withdrawal of cash from any ATM/micro-ATM.
Conclusion:
MUDRA .is a government financing scheme to provide a business loan to new small businesses in India. To get a business Mudra loan under PPMY, the candidate has to contact the nearest public/ private sector bank. The interest rate will be fixed by the institutions time to time-based on guidelines from the RBI.
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