Micro Unit Development & Refinance Agency Limited (MUDRA) is an NBFC that works to support the growth of micro-enterprises in India.
MUDRA grants refinance assistance of up to 10 lakhs to Banks, MFIs, and NBFCs for credit disbursement to micro units, under the Scheme of Pradhan Mantri MUDRA Yojana. In addition, development-oriented products are also provided. The varied range of services caters specifically to different types of benefactors.
In collaboration with Pradhan Mantri Mudra Yojana (PMMY), MUDRA has developed products/schemes. The interventions have been named 'Shishu', 'Kishore' and 'Tarun' to indicate the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation/growth to look forward to:
Shishu - covering loans upto 50,000/-
Kishor - covering loans above 50,000/- and upto 5 lakh
Tarun - covering loans above 5 lakhs and upto 10 lakh
To promote entrepreneurship among the new generation of aspiring youth by focusing primarily on Shishu Category Units, followed by Kishore and Tarun categories.
To meet the needs of different sectors/business activities and business/entrepreneur segments within the framework and overall objective of Shishu, Kishore, and Tarun's development and growth of the micro enterprises' sector.
MUDRA provides two types of funding support
Various micro enterprises / small businesses can access Micro Credit Schemes through Micro Finance Institutions (MFIs), which provide up to 1 lakh in credit. Even though the model of delivery may be through SHGs, JLGs, and individuals, the MFIs provide loans to individual entrepreneurs for specific income-generating micro-enterprises.
Banks, including Commercial Banks, Regional Rural Banks, Small Finance Banks, and NBFCs can enjoy refinancing support from MUDRA towards financing micro-enterprise activities up to a threshold of 10 lacs per unit. These eligible entities meeting the requirements specified by MUDRA as applicable can access refinance for loans given for Shishu, Kishore, and Tarun category-compliant activities. To further motivate women entrepreneurs, registered MFIs/NBFCs may offer additional facilities such as reduced interest rates on the loan. At present, MUDRA offers an incentive of 25bps less in its interest rates to MFIs and NBFCs advancing loans to female entrepreneurs.
There are many purposes for which Mudra loans are extended, resulting in income generation and employment creation.
Vendors, traders, shopkeepers, and other service sector businesses can apply for a business loan
MUDRA loans can be used for the following activities:
Vehicles for the transportation of passengers and goods, such as auto-rickshaws, small goods transport vehicles, three-wheelers, e-rickshaws, taxis, etc. In addition to tractor trolleys and power tillers, two-wheelers can also be covered by PMMY if they are used for commercial purposes.
Salons, beauty salons, gymnasiums, boutiques, tailoring shops, dry cleaners, bicycle, and motorcycle repair shops, DTP and photocopying facilities, medicine shops, courier services, etc.
Papads, achaar, jams, and jelly-making, preservation of agricultural produce at rural levels, sweet shops, small food stalls, catering/canteens, cold chain vehicles, cold storages, ice makers, ice cream makers, biscuit makers, bread makers, and bun makers are just a few examples.
Handlooms, power looms, khadi, chickens, zari and zardozi, traditional embroidery and handwork, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching, and other textile non-garments, such as bags, vehicle accessories, furnishings accessories, etc.
Providing loans to individuals for running their shops/trading activities/service enterprises and non-farm income-generating activities up to 10 lacs per enterprise/borrower.
Establishing micro enterprises through the purchase of necessary machinery and equipment with a loan size of up to 10 lac per beneficiary.
Pisciculture, beekeeping, poultry, livestock-rearing, grading, sorting, aggregation of agricultural industries, dairy, fishery, agribusiness centers, food, and agro-processing, etc. (excluding crop loans, land improvement projects such as canals, irrigation, and wells) and services supporting these shall be covered under PMMY in 2016-17 to enhance livelihoods or generate income.
MUDRA Card is a debit card linked to the MUDRA loan account, which can be employed for multiple withdrawals and credits to maintain a cost-effective working capital limit and reduce interest fees. It also facilitates the digitalization of MUDRA transactions as well as building up credit history for borrowers. Additionally, this card can be used at any ATM/micro ATM or Point of Sale machine nationwide.
Micro unit Equipment Finance
Loans for transport vehicles - only for commercial use
Agri-allied non-farm income-generating activities, such as pisciculture, beekeeping, poultry farming, etc.
Only commercially used tractors, tillers, and two-wheelers.
An e-Mudra loan is part of the Pradhan Mantri MUDRA Yojana (PMMY) and the Digital India initiative, launched by the Indian government in 2015 to help small business owners.
The E-Mudra loan scheme enables small-scale enterprises in India to apply online for loans ranging from Rs. 50,000 up to Rs. 10 lakhs. Introduced in 2015, the scheme is considered a vital component of the PMMY (Pradhan Mantri Mudra Yojana).
The E-Mudra loan is an effective government initiative to support Indian small and medium-sized businesses financially. Businesses can use the loan amount to cover their working capital needs, start a business venture, expand, etc.
In addition to applying for an e-Mudra loan through the official websites of registered banks/NBFCs, one may also apply through the Udyami Mitra Portal.
You can also apply for an e-Mudra loan online through the Udyami Mitra portal. However, before applying, make sure you have all the necessary documents with you.
A person between the ages of 18 and 65
Pradhan Mantri Mudra Yojana loans are available to both new and existing units.
This loan is available to businesses that produce goods.
This loan is available to individuals employed in the trading and services sectors.
Visit the PMMY official website to download the e-mudra loan application form. The application form will vary based on whether you need a loan under the Shishu, Tarun, or Kishore scheme.
1. ID Proof
2. Address proof
Between 6 months to 12 months for the loan amount upto 50,000/- under the product name Shishu (e-Mudra loan)
Between 12 months to 36 months for the loan amount upto Rs. 50,001 to Rs. 5,00,000 under the product name Kishor (e-Mudra loan)
Between 12 months to 60 months for the loan amount Between Rs. 5,00,00 to Rs. 10,00,000 under the product name Tarun (e-Mudra loan)
State Bank of India (SBI) offers e-Mudra loans under the product name SBI e-Mudra Loan.
Canara Bank offers e-Mudra loans under the product name Online MSME Loan
Punjab National Bank (PNB) offers e-Mudra loans under the product name PNB e-Mudra Scheme
Those individuals who need funds for business needs, expansion purposes, company setting up, or establishment modernization may take advantage of the Pradhan Mantri Mudra Yojana, which is a collateral-free loan. It can be used to start a new business unit or to expand an existing one.
SBI customers who maintain Savings Bank or Current Accounts (Individual) can apply for an e-MUDRA loan amount of up to Rs. 50,000 on their official website, or by clicking the link below: SBI e-Mudra Loan.
The scheme offers a sanction that ranges from Rs. 50,000 to Rs. 5 lahks at the Mudra interest rate decided by the lending institution. Based on the scheme's guidelines and your credit history, the interest rate may range from 8.60% to 11.15% or more.
The Bank of India Mudra Loan stands as a special financial aid for small and micro business units. This makes them accessible to the formal banking system, replacing the often unreliable informal channels they've had to lean on up until now. Affordable credit is made available via the Pradhan Mantri Mudra Yojana scheme, allowing business units with a credit requirement of less than Rs 10 lacs to develop their enterprises.
The SBIs 24x7 helpline number is 1800 1234 (toll-free), 1800 11 2211 (toll-free), 1800 425 3800 (toll-free), 1800 2100 (toll-free) or 080-26599990. Toll-free numbers are accessible from both landlines and mobile phones.
If the borrower takes out a Mudra loan, he or she does not have to pay any processing charges or provide collateral. Under the PMMY scheme, Mudra loans can be offered not only to companies in the non-farm sector but also to companies involved in allied agricultural activities, such as horticulture and fisheries.
Mudra loans are offered by Punjab National Bank to MSMEs engaged in manufacturing, trading, or service activities.
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