The Mudra loan is a government scheme that aims to improve the prospects related to micro units. The government has identified the lack of substantial funds required for the growth of small and medium scale businesses in India. The scheme was introduced to support micro, small and medium business units. There are three categories of loans under this scheme that can be availed during fund shortage or for growth and funding requirements by the beneficiary micro units.
MUDRA Loan Interest Rates:
As per the scheme there are three products under the Mudra loan. These are categorized as per the stages of growth of the enterprise. As per the scheme the interest rate and the loan limit depends on the product. They are as follows:
SEE ALSO: MUDRA Loan
There are some eligibility criteria that the applicant must fulfill for Mudra loan. They are as follows:
These are some basic eligibility criteria prescribed by the government. The banks and other financial institutions have their own guidelines and parameters for checking Mudra loan eligibility.
Mudra loan is a government scheme that aims to provide funds to the non corporate small business sector. The category eligible to avail this loan must belong to the following professions:
Mudra loans aim to bring micro units and small enterprises under the formal financial system. The loans can be availed for various purposes like maintenance and upkeep of farms, for purchasing vehicles, to purchase equipment and machinery or for enhancing infrastructure as business loans. Banks facilitate loans under the Mudra scheme as per customer requirements and the loans are collateral free. The following eligibility criteria must be met by the applicant to avail Mudra loans:
These loans help businesses and enterprises prosper in the micro units sector and can be availed by the low income group to ease financial shortages in the business.
SEE ALSO: Mudra Loan Eligibility Criteria
The basic documents required are as follows:
Apart from the basic documents, the applicant must also submit some requisite documents for loans availed for specific purposes. The documents required are as follows:
If the borrower requires financial help for purchasing a vehicle under this scheme, he must submit the following documents:
If the borrower wishes to take loans for his business under this scheme, he must submit the following documents:
If the applicant applies for rural business credit under the Mudra Loan he must submit the following documents:
The Mudra card refers to a debit card issued against Mudra Loan account. The card can be operated throughout India for withdrawal of cash and also to make direct payments. The maximum limit that can be withdrawn from ATM using this card is Rs 25,000 in a day.
These are personalized cards that bear the name of the firm or individuals. The card will cover cash credit as well as current deposit accounts. Transaction charges are applied from the first transaction onwards. The RuPay card will have an additional benefit of insurance coverage up to Rs 1 Lakh.
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