Mudra Loan

Mudra Loans solely refer to loans offered by banks, Self-Groups and Joint Liability Groups under the Pradhan Mantri Mudra Yojana Scheme. Post the formation of Mudra (Micro Units Development and Refinance Agency Limited) by the Indian Government's Union Budget in April 2015, the PMMY (Pradhan Mantri Mudra Yojana) scheme came into being. The aim of the Micro Units Development and Refinance Agency Limited alongside the Pradhan Mantri Mudra Yojana Scheme is to offer financial support for micro-enterprises including but not limited to smaller manufacturing units, small industries, and small-scale food service units. Under the aegis of the PMMY scheme, all small industries and enterprises can avail of loans up to Rs. 10 Lakhs. However, these loans do not apply to the agricultural sector.

Three Primary Loan Products

In keeping with the PMMY scheme, small enterprises and industries can avail of development and refinance funds from banks, Self-Groups, and Joint Liability Groups in the form of three primary loan products or packages. These loan products and corresponding information are as listed below.

Tarun – encompasses loans ranging from Rs. 5 Lakhs to Rs. 50 Lakhs 

Kishore – encompasses loans ranging from Rs. 50,001 to Rs. 5 Lakhs

Shishu - encompasses loans of up to Rs. 50 Lakhs

Mudra Outreach

It is important to know that the Micro Units Development and Refinance Agency Limited has a specific goal that revolves around financial support to small-scale industries and enterprises. As such Mudra outreach is customized and tailored to provide funding for such enterprises and industries in the following ways...

• Micro Credit Schemes – offered by Micro Financial Institutions funded by the Union Budget to provide small enterprises loans of up to Rs. 1 Lakh.
• Women Enterprise Programs – offered by Joint Liability Groups and Self-Help Groups funded by the Union Budget to help women entrepreneurs with concessions on interest rates.
• Bank Refinance Schemes under PMMY – that allows co-operative, regional, rural and commercial banks to provide refinance on existing loans for small-scale enterprises and industries.
• Mudra Card – a variation of the standard credit card which allows small enterprises and industries the benefit of a cash-credit setup with overdraft (loan).
• Credit Guarantee Fund – A special fund managed by the National Credit Guarantee Trustee Company LTD that ensures the easy availability of micro loans for small enterprises and industries.
• Equipment Finance Scheme – for the purchase and upgradation of equipment needed by small-scale enterprises and industries.
• Credit to Micro Industries – to meet growth requirements of small enterprises and industries while maximizing benefits and the number of beneficiaries of the PMMY scheme.

Mudra Loan Interest Rates

As mentioned, prior, Mudra loans are dispersed by various co-operative, regional, rural and commercial banks. Listed below are the current interest rates applicable to Mudra loans offered by leading banks.

In conclusion, it must be noted that interest rates for PMMY products offered by leading banks are subject to change as per the guidelines of Micro Units Development and Refinance Agency Limited.

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