Get Mudra loan at attractive interest rates

• Community, Personal Service and Social Activities

  The activities/businesses for which MUDRA loans can be availed under this head include medical shops, boutiques, saloons, gymnasiums, dry cleaning, beauty parlours, motorcycle repair shops, tailoring shops, courier services, photocopying and DTP facilities, etc.

• Transport Vehicle

  MUDRA offers financing for buying transport vehicles for goods as well as personal transport like auto rickshaws, three-wheelers, passenger cars, e-rickshaws, taxis, etc.

• Food Products Sector

  Under the Food Products Sector, MUDRA loans can be availed for activities like achaar making, papad making, jelly or jam making, day-to-day catering, small service food stalls, cold storages, ice cream making units, cold chain vehicles, bun and bread making, etc.

• Business Loans for Shopkeepers and Traders

  MUDRA loans under this head can be availed by individuals who require financing for running their shops, service enterprises, business and trading activities, and non-farm activities that generate income.

• Textile Products Sector

  MURDA loans under this head are available for activities such as powerloom, handloom, chikan/zardozi work, khadi activity, traditional printing and dyeing, knitting, computerised embroidery, apparel design, other textile activities for non-garment products, etc.

• Agriculture and Allied Activities

  MUDRA loans can also be availed for bee keeping, pisciculture, livestock, sorting, agriclinics, dishery, etc.

• Equipment Finance Scheme for Micro Units

  MUDRA loans are extended for the setting up of micro enterprises by buying the necessary equipment/machinery.

Funding Support under MUDRA Loan

MUDRA offers four types of funding support:

1. Micro Credit Scheme
   • Loans can be availed to the extent of Rs.1 lakh. The funds can be used for a variety of micro enterprise activities.
   • Targeted primarily at groups such as Joint Liability Groups (JLGs) and Self Help Groups (SHGs).
   • Any Micro Finance Institution (MFI) that wishes to avail a loan should enrol with MUDRA and comply with its requirements.
2. Women Enterprise Programme
   • Additional facilities are offered to women entrepreneurs to encourage them to follow their dreams.
   • Facilities include the reduction of interest on loans. Currently, MUDRA loans can be availed by Micro Finance Institutions (MFIs) or Non Banking Financial Companies (NBFCs) with a discount of 25 basis points or 0.25% on the interest rates, provided they offer loans to women.
3. Refinance Scheme for Regional Rural Banks/Commercial Banks/Scheduled Co-operative Banks
   • Various banks such as Scheduled Co-operative Banks, Regional Rural Banks, and Commercial Banks can avail refinance.
   • Refinance amount offered can go up to Rs.10 lakh per unit, and the funds can be availed as working capital loans or term loans. This is applicable to banks that have taken loans under the Tarun, Kishor, and Shishu categories.
4. Securitisation of loan portfolio
   • MUDRA extends support to NBFCs, MFIs, and banks to fund micro enterprises through participation in securitisation of their loan assets.

Benefits of Taking MUDRA Loan

Here are the key features and benefits of MUDRA loan:

• Banking and financial services can be availed in both rural and urban areas.
• Financial backing can be obtained by micro-small businesses and start-ups.
• Business loans can be taken for small amounts at affordable interest rates.
• The borrower’s credit guarantee is taken by the government, so if a borrower is unable to repay the amount borrowed, the responsibility for the loss will be borne by the government.
• Food vendors, shopkeepers and other small business owners can make the most of this scheme.
• Financial aid is available through this scheme in areas where people have no access to basic banking facilities.
• The repayment period of the scheme can extend up to seven years.
• Women borrowers can avail the loan at discounted interest rates.
• Refinance schemes can also be availed with designated lenders.
• Individuals who wish to generate income through micro enterprise activities can avail the Micro Credit Scheme.
• The MUDRA loan scheme is in collaboration with the “Make In India” campaign which the government has initiated to foster innovation, facilitate investment, improve skill development, and build the best manufacturing infrastructure in the country.
• There is no need for collateral or security to avail this scheme.
• The funds borrowed through this scheme can only be used for business purposes.
• Should be Indian Citizens.