Micro Units Development and Refinance Agency Ltd. Pr MUDRA loan is funding offered to people in the microenterprise sector in India. MUDRA loan helps the financial support of up to INR 10 lakh under the Pradhan Mantri MUDRA Yojana.
- Shishu Loan that offers a loan up to INR 50,000.
- Kishor loan provides cover from INR 50,000 to INR 5 lakh
- Tarun loan provides cover ranging from INR 5 lakh to INR 10 lakh
Who are eligible for Pradhan Mantri Mudra Yojana?
The eligibility for Mudra loans belongs to all the Non-corporate Small Business segments, such as:
- Service sector units
- Partnership/Proprietorship firms
- Foodservice/small manufacturing units
- Truck operators
- Shopkeepers/vegetable or fruit vendors
- Repair shops
- Small industries
- Machine operators
- Food processors
- Agricultural enterprises
- Companies engaged in income generating activities
- Other industries in urban and rural regions
MUDRA loan Features
- The applicant can get up to INR 10 lakh through MUDRA loan, whereas there is not a minimum loan amount limit.
- It is a collateral free loan that’s provided under Pradhan Mantri Mudra Yojana.
- Loans availed through Mudra yojana are not liable for any processing fee.
- The interest rate on MUDRA loans is as per the Marginal Cost-based Lending Rate that’s issued by RBI.
- The MUDRA loan can be used for any purpose, such as buying plant or equipment, commercial vehicles, renovating offices, fulfilling capital needs, etc.
- The credit facilities within the Mudra scheme can be utilised for term loans and overdraft facilities. You can even use MUDRA loan for applying for letters of credit or bank guarantees.
How to apply for MUDRA loan
You can apply for MUDRA loan either offline or online. The offline mode requires you to approach a bank or a financial institution, filling a loan application, and submitting the loan application with all necessary documents. Many leading financial companies offer Mudra loans to help borrowers fund their businesses. Additional Read: What Interest Rates are Good for Your Small Business Finance?