The Indian government aims at progressing and developing together. It launches several schemes targeting various sectors of society to provide them relief from economic and financial problems. Money is a necessity, especially during unexpected events and urgent fund requirements. Hence, the NDA government launched the Micro Units Development and Refinance Agency on 8th April 2015. Non-corporate small business sectors can apply for a MUDRA loan to grow and progress.
Lack of financial support is the biggest barrier to the
growth of small businesses in our country. The purpose of the loan is to
resolve the issue by extending financial support to them. The number of
small-scale enterprises in the country is higher than private organised ones.
Most of them include sole proprietorship firms undertaking manufacturing,
trading, retail, broking, and other activities.
There is immense potential to nurture small businesses to
contribute more towards the country’s GDP. The segment is mostly unregulated
without an organised financial system, especially in rural areas. Apply for
MUDRA loan online by visiting the Udyamimitra portal or the official bank
website. Loans under this scheme bring enterprises into the formal financial
system and aim to fund the unfunded.
The Pradhan Mantri MUDRA loan offers credit facilities to
micro and small businesses engaged in income generation. One of the benefits is
that you do not need to provide security or collateral. Additionally, you get
exempted from paying processing fees on loan. The Pradhan Mantri MUDRA Yojana
extends credit facilities for any fund or non-fund requirement. Use the MUDRA loan EMI
calculator to calculate the approximate EMI for various purposes, including
term loans, overdraft facilities, apply for letters of credit, and bank
guarantees.
There is no minimum loan amount when you apply for MUDRA
loan. There are three types of loans, depending on the loan amount. Under
Shishu, you can get a loan of up to Rs. 50,000. Under Kishore, you can borrow a
loan amount between Rs. 50,001 up to Rs. 5 lakh. You can also get loans of up
to Rs. 10 lakh sanctioned under Tarun.
The maximum loan amount you can borrow is Rs. 10 lakh. The MUDRA
loan scheme targets enterprises in the non-farm sector. It also includes those
involved in allied agricultural activities like horticulture and fisheries.
According to the Marginal Cost of Lending Rate or MCLR set by the Reserve Bank
of India, banks calculate the MUDRA loan interest rate.
