Key Features Of Mudra Loans Include:
Three Categories: MUDRA loans are categorized into three segments based on the loan amount to meet the diverse financing needs of micro and small businesses:
Shishu: Loans up to Rs 50,000
Kishore: Loans between Rs 50,001 and Rs 5 lakh
Tarun: Loans between Rs 5,00,001 and Rs 10 lakh
Collateral-Free Loans: Most MUDRA loans are offered without the need for collateral or security, making them accessible to those who lack assets to pledge.
Flexible Repayment Terms: MUDRA loans typically come with flexible repayment schedules that suit the borrower's income-generating activities.
Support For Various Sectors: MUDRA loans are extended to a wide range of sectors, including manufacturing, trading, and services, enabling entrepreneurs to start or expand their businesses.
Interest Rates: The interest rates on MUDRA loans can vary depending on the lending institution and the borrower's creditworthiness. However, the government has encouraged banks to offer these loans at affordable rates to promote financial inclusion.
Refinancing: MUDRA provides refinancing support to financial institutions that lend to micro and small businesses. This helps banks and microfinance institutions manage their portfolios effectively.
Employment Generation: One of the primary objectives of MUDRA is to create employment opportunities by supporting small businesses and startups, particularly in rural and semi-urban areas.
Financial Inclusion: MUDRA aims to bring the unbanked and underbanked population into the formal financial system by providing them with access to credit facilities.
To avail of a MUDRA loan, individuals and businesses can approach various banks, non-banking financial companies (NBFCs), and microfinance institutions that participate in the MUDRA Scheme. The application process typically involves submitting business plans, financial statements, and other necessary documents to the lending institution.
It's important to note that the availability and terms of MUDRA loans may change over time, so it's advisable to check with the relevant financial institutions or government sources for the most up-to-date information and eligibility criteria.