What is Mudra Loan?
Mudra Loan launched on 8th April 2015 by Indian Governments. According Mudra (Micro Units Development and Refinance Agency) Loan Yojana under Pradhan Mantri Mudra Yojana (PMMY) provides lending support to the MSME sector that includes micro and small manufacturing units, food service units and small industries. The basic motive of Mudra scheme is to extend the facility of institutional finance to individuals and MSMEs engaged in trading, manufacturing and service sectors.
PM Yojana is a scheme initiated by Government of India to provide funding support of maximum up to Rs. 10 lakh to individuals, MSMEs, and non-corporate and non-farm small/micro enterprises.
Mudra loans are offered under PMMY with the help of Public and Private Sector Banks, Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) and Regional Rural Banks (RRBs).
Why Started Pradhan Mantri Mudra Yojana Loan
The basically main motive of started Pradhan Mantri Mudra Yojana Loan, because Indian 50% GDP getting from the organization sector. That’s why Governments focus on the business organization sector, Like small businesses increasing, set up for new business, and employments.
Eligibility of Pradhan Mantri Mudra Yojana(PMMY)
- Loans offered under 3 categories: Shishu, Kishor and Tarun
- Maximum Loan Amount: Rs. 10 lakh
- Minimum Loan Amount: No criteria
- Collateral/Security: Not required
- Age Criteria: Minimum 18 years and Maximum 65 years
- Repayment Tenure: Up to 5 years
- Interest Rate: Varies from bank to bank
Types of under Pradhan Mantri Mudra Yojana
Loan amount offered- PM Mudra loan scheme has three categories under which loans are disbursed:
- Shishu – For loan amount up to Rs. 50,000
- Kishor – For loan amount from Rs. 50,001- Rs 5 lakh
- Tarun – For loan amount more than 5 lakhs and up to Rs 10 lakh
Who can borrow PM Mudra Loan?
Any businessperson or business who/which has not been a defaulter on any loan repayment previously is eligible to borrow under the PMMY (Pradhan Mantri MUDRA Yojana). Thus individual business owner, private limited companies, public sector companies, proprietary firms or any other legal business entity can apply for mudra loan.
What is the benefit of Mudra loan?
Loans offers to small businesses in the unorganized sector are now covered by a credit guarantee scheme. It also helps bridge the shortfall in loans for these businesses. This helps small entrepreneurs save on the interests that they need to pay.
Which bank is best for Mudra loan?
Bank Name Mudra loan interest rate P.A.
- Oriental Bank of Commerce 10.65% to 11.65%
- ICICI Bank 10.99% to 17.99%
- Kotak Mahindra Bank Starts from 16%
- UCO Bank 7.65% onwards
- HDFC Bank 10.99% to 20.70%
- Indusind Bank As per bank guidelines
- Dena Bank As per bank guidelines
- Canara Bank As per bank guidelines
- Bank of Baroda 9.65% onwards
- Union Bank of India 7.80% to 9.05%
Documents Required for Pradhan Mantri Mudra Yojana
- Mudra application form.
- Vehicle loan application form.
- 2 passport size colour photographs.
- Photo Identity proof.
- Address proof.
- Income proof.
- Bank statement (last 6 months)
PAN card is not mandatory to get Pradhan Mantri Mudra Yojana. However, the bank may ask for KYC documents to approve the loan.
How to apply?
- Step 1. Keep the necessary documents ready. Applicants need to have the necessary documents required.
- Step 2. Approach a financial institution.
- Step 3 .Fill in the loan application form.
How long does it take to get?
Lower amount Shishu loans are generally disbursed within 7-10 days while the other categories have processing times varying from lender to lender.
Mudra loan online apply
Mudra Loan Yojna Providing loans, Check Your Eligibility and apply now to get easy. Apply Online for Mudra loan Yojana Get Easy Approval. Education Loan. Car Loan. Home Loan. Personal Loan. Amenities: Instant Approval, Easy Process, Low Interest Rate.
Result of this Scheme
Many People wrong used this Scheme. They took a loan but didn’t get a return. That’s why bank NPA (Non Performing Assets) increased, and bank facing a problems. The fraud was continue increased, Then Govt. take a very strict action about this loan and make very high-level rules about these schemes.
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