MUDRA or Micro Units
Development and Refinance Agency Ltd. is a financial institution set up by the
Indian government with the goal of fulfilling the corporate small businesses’
funding needs. MUDRA prepares and launches the policy guidelines and regulates
the Micro Finance Institutions. The MUDRA Loan will benefit the shopkeepers,
beauty parlour owners, fruit and vegetable sellers, hawkers, truck operators,
artisans, etc.
MUDRA Loan Schemes
MUDRA has created 3
categories of schemes to fund during the growth stage, the development stage
and the funding stage. The schemes are:
- Shishu category:
This
category is for the start-ups whose businesses have not yet started and are
looking for loan. Loan of up to Rs.50,000 will be given to the micro units that
fall under this category. Collateral is not required to avail this loan. There
is no processing fee being charged either. The rate of interest offered is 1%
per month. The repayment term extends to 5 years. Working capital loan will be
given via MUDRA Cards.
MUDRA
Cards are issued by the banks directly or in association with the Micro Finance
Institutions. It is issued as RuPay Debit Card and can be used to withdraw cash
from ATM or can make payment online or at POS machines.
- Kishor category:
The
business which are running but are yet to be established will fall under this
category and the loan offered ranges from Rs.50,000 to Rs.5 lakh.
- Tarun
category:
The
small businesses that have been set up and have established themselves fall
under this category. The loans are offered to either expand or to utilise the
money for the betterment of the business. Businesses falling under this
category will get loan up to Rs.10 lakh.
Eligibility criteria of Mudra Loan
The eligibility criteria
for participating banks are as follows:
- The
scheduled commercial banks in the public or the private sector who have had 3
years of continuous profit record and whose NPAs are not exceeding 3% and whose
minimum net worth is Rs.100 crore and CRAR not less than 9% are eligible to
lend loan.
- The
restructured regional rural banks whose net NPA is within 3% and have a
profitable operation and not carrying over any accumulated losses and whose
CRAR is more than 9% are eligible to lend MUDRA loans.
- Micro
Finance Institution and the small business companies can also lend MUDRA loans
if they fulfil the requirements.
Apply for MUDRA Loan
The following are the
steps you must follow to apply for the MUDRA loan:
- Prepare
a business idea and present the idea along with the application form.
- Visit
the nearest bank either the scheduled bank, regional rural bank, scheduled
urban co-operative bank of a Micro Finance Institution that offers MUDRA Loan.
- Present
the Idea along with the other required form to the bank.
- Provide
address and identity proof along with passport sized photographs.
- Borrower
must fulfil all the formalities that the bank requires.
Loan will be sanctioned and then it will be made
available at the earliest.
