Mudra Bank Loan Scheme
Mudra stands for Micro-Units Development and Refinance Agency. Mudra bank is a public sector financial institution that provides a Mudra loan at a very cheap interest rate to micro-finance institutions and non-banking financial institutions.
These MFIs then provide loans to micro/small enterprises which are in the business of manufacturing, trading, and other related services.
Prime minister launched it on April 8, 2015, with a vision of lending a helping hand to the small business groups.
What is Mudra loan?
The loan provided by the Mudra bank under the Pradhan Mantri Mudra Yojana announced by the Finance Ministry during the Union budget of the financial year 2016.
The purpose of the Mudra loan is to refinance the micro units of India and the vision of our Prime Minister Narendra Modi is to turn Indian job seekers into job creators.
The loan amount starts from 50,000 to up to 10 lakhs.
Eligibility and categories of Mudra Loan:
Mudra loan can be taken in 3 segments. The eligible loan seekers are divided into three categories and you can take loan according to the size of your business.
Sishu: This category is suitable for those who are entrepreneurs, and starting their new business. It will help them in availing the primary needs for their business.
Here one can take a loan of an amount of maximum 50,000.
Kishore: This category is meant for those entrepreneurs who have started their business and now need a loan for the next step. One can take Rs. 50,000 to 5 lakhs as loans.
Businessmen who want to increase their business or entrepreneurs who are starting a big business and need lump-sum amount of loan may fall in this category.
Tarun: Through this category, one can avail loan from 5 lakhs to 10 lakhs. If an entrepreneur meets the norms, then he can easily get this amount as a loan.
How to apply for the Mudra loan?
There is no certain structure that should be followed. One has to approach the bank that is providing Mudra loan and provide them all the details regarding the business.
Then the bank will provide them a form. The person has to fill the form up. If that person has a savings account in that bank then the process will be quick. This is a complete collateral free loan, so a good credit history will do.
What is the interest rate?
There is no fixed interest rate. It will depend on upon the structure and type of your business. It will vary from bank to bank. The government may provide subsidy on the interest but no interest rate has been announced.
How is the Mudra loan proving beneficial?
Moneycontrol.com says nearly 1,65,000 people, under the scheme, have been served by the use of the over-drafting facility and the Indian government has mobilized near about an amount of 10 billion Indian rupees for Mudra scheme by September 2015.
Banks have already disbursed till 26th September 2015 an amount of 250 billion to 27 lakh MSMEs.
In the state of Gujarat this scheme has helped, till 7th April 2016
- 5 lakh beneficiaries under the Sishu loan category
- The total amount of loan was Rs. 2111 crore.
- 85,039 beneficiaries under the Kishore loan
- The total loan amount was Rs. 1, 843 crores.
- Under the Tarun loan 25, 852 beneficiaries
- The total amount of loan was 1, 875.
And all these happened within 12 months from the date of the launch of the scheme.
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