What is Mudra Loan Scheme & How To Apply? | Letmethink.in

mudra loan

Mudra Loan– Options and repayment options are designed around the alignment of your intentions, wishes, and the actions you take to manifest your inner vision. Yes, it’s an elegant word for an elegant concept. There’s a small, but growing group of individuals that are looking for a completely new way of doing business.

I’m talking about the so-called “New Business Owners” – individuals that are starting up a small business in a relatively short period of time, often in the aftermath of their own unexpected entrepreneurial ventures.

I think of them as the new type of entrepreneurs – the “unknown” entrepreneurs. These unknown entrepreneurs are essentially carving out their own success stories, in an unprecedentedly short period of time. 

How Much Amount To Pay?

An individual borrower has to pay 10% of his income as a loan fee every month. The amount varies from Rs. 10,000 to 20,000. If the monthly income is lower than Rs. 5,00,000, then the Mudra loan is a scheme by the Indian government. You can get an interest-free loan and get a small amount of money every month.

If your loan amount is less than 10 lakh rupees, you will have to pay a loan fee. As per this loan scheme, loan providers are mostly banks. The loan amount varies from 10,000 rupees to 20 lakh rupees. The loan amount varies depending on your credit score.

Mudra Loan Finance

The company is the first and only SME NBFC in India that provides term loans for solar products. “We have built a strong team who have been able to design and develop a product that matches the needs of our customers,” says Nilesh Singh, MD, swenergy.com.

Benefits of Mudra Loan Finance

Mudra loan has been made as a people’s bank and giving loans up to Rs10 lakh to non-corporate, non-farm small, and micro-enterprise. Mudra loan is a little bit short term, which means the loan needs to be paid in six months and full interest is payable for the loan amount, this is the main disadvantage and most important factor that need to be considered before taking the loan.

The loan given by Mudra bank is given up to Rs50,000 at a low-interest rate and you can get a loan of up to Rs10 lakh for six months. You should check all your budget before taking the loan and you should take out enough money for your goal. It’s also very important to understand about Mudra loan before taking the loan because if you miss any detail it can be very difficult to recover. Know about the Mudra loans requirements and also Mudra benefits in India that are listed in the following section

Types of Mudra Loan Finance

The Mudra loans are available only for unorganized sector entrepreneurs. It is a zero percent interest loan where the borrower does not have to pay any collateral. The interest is waived off for three years. The Mudra loan is also available for women. Two percent is charged as a processing fee on account of PoS machines and the rates vary from state to state.

The Mudra loan can be availed under three categories – self-employment, small enterprises, and retail. It is important that you take a look at all the Mudra loans because there are different kinds and there are guidelines for availing Mudra loans under different categories. There are loans available for self-employment where only 0.01 percent is deducted as processing fees.

Mudra loans are available for women entrepreneurs where only 0.01 percent is deducted as processing fees. There are special Mudra loans that are for those entrepreneurs who have a business/ occupation. For example, one who sells non-perishable food items is an entrepreneur and is eligible for the Mudra loan. The Mudra loan is also available under MUDRA Yojana. Here, in order to avail of the loan, the applicant is supposed to have a valid PAN card.

Also, one can avail of Mudra loans through Direct Benefit Transfer. In this way, the loan amount reaches the beneficiary’s bank account after the processing of his or her application and has been directly transferred to his/her account.

How Mudra Loans Are Disbursed?

The Mudra loans are distributed to the beneficiaries by the Bank-led developmental projects or by various government schemes. Since 2008, the target has been 100 percent financial inclusion. The loans are directly credited to the bank accounts of the beneficiaries. You need not come to a Mudra center. The loan amount is directly credited to the bank account of the beneficiary.

There are two types of loans that you can get through Mudra loan – short-term loan and long-term loan. For long-term loans, a minimum loan amount is required for availing of long-term loans. The minimum loan amount varies from state to state. You have to apply for this Mudra loan through one of the bank’s branches and then only it will confirm your registration for the Mudra loan.

How to apply for a Mudra loan

You will be selected for an interview if you have applied for the loan. Apart from the amount provided to you, after you successfully complete the loan, you will also receive an additional incentive of Rs 25,000.

The loan application process starts only after you have sent in all your required documents and information. If you are unable to complete the loan application process, then your loan request will be rejected and you will not be eligible for the Mudra loan.

Here is the step-by-step guide to applying for the Mudra loan online.

Step 1: Log on to the Mudra app from your smartphone.

Step 2: Enter your personal details, bank details, and IFSC code.

Step 3: Fill the application form, pay your registration fee and proceed to the payment page. Step 4: Make the payment using the VISA/EPS/AADHAAR and set a target to complete the loan within 28 days.

Step 5: Wait for the loan to be approved. Click here to know the full procedure of applying for the loan.

Disclaimer– This article is just for informational purposes, before applying the loan please do contact official website or branch of the Mudra Loan.

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