Do you have a dream of starting a restaurant or a small tea shop? Getting funds might be difficult. These dreams usually come to halt due to lack of money. Money is the lifeline of a business.
With the new MUDRA scheme, you can easily meet financial requirements for starting a business. You can avail funds for starting a venture as well as expanding your business.
MUDRA scheme is designed specifically to extend affordable credit to micro units and small enterprises engaged in income generation. The loan helps set up your business, purchase equipment, fund renovations and offers finances to grow the business.
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MUDRA is a scheme launched by the Government of India to improve the prospects of micro units. It offers funding to the non-corporate, non-farm sector whose credit needs are below Rs 10 lakhs.
As per the choices available under this scheme, there are 3 products under the Mudra loan that vary according to the stages of growth of the respective businesses. As per Mudra scheme the interest rate and the loan limits are as follows:
Shishu: The maximum loan amount that can be availed is Rs 50,000 with an interest rate of 12% a year. The repayment tenure of this loan is a maximum of 5 years.
Kishore: The loan limit under this category ranges from Rs 50,000 to Rs 5 Lakhs. The rate of interest depends on the bank from which the loan is availed and the credit score of the borrower. The bank decides the repayment tenure.
Tarun: The loan amount ranges from Rs 5 Lakh to a maximum of Rs 10 Lakh. The interest rate on the loan and repayment tenure is decided by the bank; after evaluating the credit score of the applicant.
MUDRA loans are generally extended to micro units and small enterprises belonging to the non-farm income-generating category. The enterprises must be in business of trading, manufacturing and services where credit needs are less than Rs 10 Lakh.
Banks sanction loans under the Pradhan Mantri MUDRA scheme as per the customer’s needs. The loans are collateral-free and aim to bring the micro units and small enterprises under the formal financial system.
See Also: Pradhan Mantri Mudra Yojana
MUDRA loan is a government-backed scheme that aims to provide easy access to funds for the non-corporate small business sector:
Get the Mudra Loan.
The MUDRA loans can be availed for various purposes like a commercial vehicle loan, loan to expand the business and rural business credit loans. Each of these distinct categories of loans requires separate paperwork. Listed below are some of the basic documents that must be submitted by the borrower to get loans under the MUDRA scheme.
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