alexa

Search in Indianmoney's WealthPedia

Home Articles Mudra Loans For Small Borrowers

Mudra Loans For Small Borrowers

IndianMoney.com Research Team | Posted On Saturday, August 31,2019, 05:30 PM

5.0 / 5 based on 1 User Reviews

Mudra Loans For Small Borrowers

 

 

The Government wants to promote micro, small and medium industries or MSMEs in India. It achieves this through the Mudra Loan. MUDRA is nothing but the Micro-Units Development and Refinance Agency.

Mudra Loan is also called the Mudra Loan Yojana, Mudra Bank Scheme or the Pradhan Mantri Mudra Yojana or PMMY. Mudra Loan became famous after the ‘Make in India’ campaign.

The minimum size of Mudra Loan is Rs 50,000 and goes up to Rs 10 Lakhs offered to start-up firms and small business units. Mudra Loans help small businesses grow and expand and manage operations through easy finance schemes. The focus is on Fund the Unfunded. Through Mudra Loans, the neglected population is made self-reliant and self-dependent.

Want to know more on Business Loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

See Also: All You Need To Know About Pradhan Mantri Mudra Yojana

Mudra Loans For Small Borrowers

Pradhan Mantri Mudra Yojana or PMMY was launched by Prime Minister Narendra Modi on April 8th 2015. Loans of up to Rs 10 Lakhs are offered to small businesses which don’t have access to the formal financial system to grow and expand. Mudra also offers refinance support to a number of banks, MFIs and NBFCs.

Eligibility for Mudra Loan: If you run a small business, you can apply for a Mudra Loan. Loans are offered under 3 different categories:

Shishu: This is for extremely small businesses or business units. It covers loans up to Rs 50,000.

Kishor: This is for slightly bigger business units. This is for loans between Rs 50,000 to Rs 5 Lakhs.

Tarun: This is for much bigger business units. This covers loans more than Rs 5 Lakhs up to Rs 10 Lakhs. Mudra also offers a special refinance scheme for women entrepreneurs called the Mahila Uddyami Scheme.

See Also: How Pradhan Mantri Mudra Yojana Helps Women?

Special Types of Loans:

You have a micro-credit scheme for loans up to Rs 1 Lakh offered through micro finance institutions. You also have a refinance scheme offered for commercial banks and RRBs or Regional Rural Banks. There is also the women enterprise programme and the securitization of loan portfolio.

What is the Mudra Card?

This is a very innovative product which offers the working capital facility under cash credit management. Mudra Card is a debit card issued against the Mudra Loan Account for working capital portion of the loan. You can operate the Mudra Card across India and withdraw cash from any ATM or Micro ATM. You can make payment with Mudra Card at POS Machines. (Point of Sale Machines).   

RuPay Mudra Debit Card: RuPay Mudra Debit Card is a Government of India initiative for the beneficiaries of the Mudra Loan under Pradhan Mantri Mudra Yojana Scheme. You get RuPay Mudra Debit Card with Pradhan Mantri Mudra Yojana Account. It offers working capital facility as cash credit arrangement. RuPay Mudra Debit Card helps manage working capital efficiently and keep the interest burden low.

See Also: Mudra Loan Application Form

Mudra partners with e-Commerce Companies

The Finance Ministry has a tie up with many e-commerce firms. Some of the prominent names are Ola, Uber, Flipkart and Amazon which offer easy finance to entrepreneurs and small businesses under Pradhan Mantri Mudra Yojana.

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.