The MUDRA loan is provided under the Pradhan Mantri MUDRA Yojana (PMMY) to non-farming and non-corporate micro and small enterprises. These enterprises can avail loans up to Rs.10 lakh under the MUDRA (Micro Units Development & Refinance Agency Ltd.) scheme.
We have discontinued this product (MUDRA Loan) at this time. Please reach out to us on +91-8698010101 to know more about the current financial services provided by us.
|Loan amount under Shishu||Up to Rs.50,000|
|Loan amount under Tarun||Rs.50,001 to Rs.500,000|
|Loan amount under Kishore||Rs.500,001 to Rs.10,00,000|
|Processing fees||0.5% for Tarun Loan, nil for others|
|Eligibility criteria||New and Existing Units|
|Repayment period||3-5 Years|
Kishor, under the MUDRA loan scheme, offers up to Rs.10 lakh to businessmen who are looking for additional funds to expand their operations.
The PM MUDRA Yojana was launched with an aim to create an inclusive entrepreneurial culture to achieve economic and social success. Under this scheme, the government aims to provide financial assistance and other support to small businesses and micro enterprises to encourage best practices for economic growth.
Loans worth around Rs.2,79,481.48 crore have been sanctioned under the Pradhan Mantri Mudra Yojana since the scheme’s inception in 2015. Of this, a total of Rs.2,64,676.44 crore has been disbursed.
The Central Government of India established MUDRA (Micro Units Development and Refinance Agency Ltd) to support the development of micro-enterprise enterprises by providing financial assistance. The purpose of the PM MUDRA Loan is to provide financial facilities to the small business sector through various financial institutions, such as banks and NBFCs.
The interest rate on a Mudra loan is nominal. Under the Pradhan Mantri MUDRA Yojana, banks and NBFCs have been advised to follow RBI guidelines and charge a reasonable rate of interest.
Mudra finance comes with easy-to-meet eligibility criteria. If you are an Indian citizen between the ages of 18 and 65 years with a business plan for any non-farm activity that generates income, such as manufacturing, processing, or the service sector, you can apply for a MUDRA loan under PMMY through a bank or an NBFC. This facility is available to small business owners, such as shopkeepers, sole proprietorship or partnership firms, operating small manufacturing units, repair shops, and small industries in both rural and urban areas.
If you meet these simple MUDRA loan eligibility criteria, you can easily obtain a loan of up to Rs.10 lakh through PMMY at a low interest rate.
If you meet the simple eligibility criteria, all you need to do is submit a few documents to apply for a MUDRA loan. Below is a list of MUDRA loan documents.
Identity proof: Aadhar Card, PAN Card, Passport, Voter ID Card, Driving license, etc.
Address proof: Utility bills, Aadhar Card, Passport, etc.
Proof of business: License or registration document confirming business existence, partnership deed, etc.
Income proof: Balance sheet for the last 2 years, bank account statement, income tax returns, etc.
Established by the Government of India, the MUDRA scheme provides refinancing assistance of up to Rs.10 lakh for small businesses through leading financial institutions such as banks and NBFCs. Under MUDRA, there are three different loan schemes, namely:• Shishu: It covers loans up to Rs.50,000
Once you submit the required documents, you can get a maximum amount of Rs.10 lakh under the MUDRA loan scheme at a nominal rate of interest.
To support entrepreneurship among women, the Government of India extends MUDRA finance to women as well. Under the Mudra Yojana Scheme for Women, budding female entrepreneurs can avail of a MUDRA loan of up to Rs.10 lakh, provided they have a non-farm business, such as manufacturing and service sector.
MSME stands for Micro, Small and Medium Enterprise. It was introduced by the Government of India in agreement with the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. As per this act, MSMEs are the enterprises involved in the production, processing or preservation of goods and commodities. Vital for economic growth, this sector contributes around one-third of the country’s GDP and generates employment for around 110 million of the population.
It also plays an important role in the socio-economic development of the country as many of these enterprises operate in rural India. According to the Government's annual report of 2018-2019, more than 6 lakh MSMEs operate in the country.
Initially, MSMEs were classified based on two factors - investment in plant/machinery and an annual turnover of the enterprises. However, the Ministry of Micro, Small and Medium Enterprises has recently revised the classification by combining these two factors into a single criterion.
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