Mudra Loan
MUDRA (Micro Units Development and Refinance Agency) loans are a part of the Pradhan Mantri MUDRA Yojana (PMMY) scheme, which was launched by the Indian government in 2015. MUDRA loans are designed to provide financial support and funding to non-corporate, non-farm micro and small enterprises in India. Here are the key details about MUDRA loans:
Purpose:
MUDRA loans are provided for the following purposes:
- Business purpose
- Capacity expansion
- Modernization
- Working capital requirements
Eligible Borrowers:
The target group for MUDRA loans includes:
- Micro and small enterprises in the manufacturing, trading, and services sectors
- Allied agricultural activities
Loan Categories:
MUDRA loans are classified into three categories based on the loan amount:
- Shishu: Loans up to Rs. 50,000
- Kishore: Loans from Rs. 50,001 to Rs. 5,00,000
- Tarun: Loans from Rs. 5,00,001 to Rs. 10,00,000
Margin:
The margin requirements for MUDRA loans are as follows:
- Up to Rs. 50,000: No margin requirement
- Rs. 50,001 to Rs. 10,00,000: 20% margin
Interest Rates:
The interest rates for MUDRA loans are determined by the lending institutions. The rates are usually competitive and linked to the External Benchmark Lending Rate (EBLR).
Repayment Period:
The repayment period for MUDRA loans depends on the nature of the loan and income generation. Generally, working capital and term loans have a repayment period of 3 to 5 years, including a moratorium period of up to 6 months.
Processing Fee:
The processing fee for MUDRA loans is as follows:
- Shishu and Kishore loans: Nil for MSE (Micro and Small Enterprises) units
- Tarun loans: 0.50% (plus applicable tax) of the loan amount