In today’s post, we are going to talk about mudra loan interest rates and how you can apply for a mudra loan.
You’ll also learn about the types of mudra loan that you can apply.
Pradhan Mantri Mudra( (Micro Units Development and Refinance Agency) Yojana started by the NDA government in the year 2015. The Programme focuses on extending financial help to the small business sector that is non-corporate and non-farm. These micro-units struggle hard for the financial support required to start and grow the business and are primarily not entertained by the bank for the institutional funds. Though these small businesses have immense potential towards contributing to the nation’s GDP, however, these micro-units are unorganised and unregulated in a significant part of semi-urban and rural areas.
What are the different stages of Mudra Yojana Loan?
There are three stages of business loan where an entrepreneur can apply is Shishu, Kishor and Tarun
|Covering loans up to 50 thousand||Covering loans up to 5 lacs||Covering loans up to 10 lacs|
What is Mudra loan interest rate?
Mudra loan interest rate is ensconced on the guidelines of the scheme and RBI. The Central bank has fixed the interest rate to the base rate or MCLR (Marginal Cost of funds based lending rate) for the Commercial Banks to take a loan for the disbursal of Mudra loan to the Micro units. The lending rate prescribed to Regional Rural Banks and Scheduled Cooperative Banks up to 3.5% and not above Mudra refinance rate.
The interest rate for Mudra loan depends upon a few factors
- The credit history of the individual
- Profile of the customer
- The business requirement of the customer
- Guidelines laid down by the Scheme and RBI
The interest rates as per the segments are :
|The interest rates range from 1% to 12%||The interest rates range from 8% to 12%||The interest rates range from 11% to 20%|
What is the Mudra loan interest of Top Banks?
|Bank||Interest charged||Processing fee charged||Repayment period||The maximum loan amount sanctioned|
|State Bank of India||10.15% onwards||Up to 5 yrs||Up to 10 lacs|
|Bank of Baroda||9.65% onwards + (Strategic Premium)||Up to 5 yrs||Up to 10 lacs|
|Punjab National Bank||8.65% onwards||Up to 5 yrs||Up to 10 lacs|
|Canara Bank||9.85% onwards||Up to 7 yrs||Up to 10 lacs|
|UCO Bank||8.85% onwards||Up to 5 yrs||Up to 10 lacs|
|Union Bank||9% – 10.25% onwards||Up to 5 yrs||Up to 10 lacs|
|Bank of Maharashtra||9.40% onwards||As per customer profile||Up to 5 yrs||Up to 10 lacs|
Note: The interest rate, the processing fee is subject change depending upon the mandate by RBI. This list excludes the GST and service charge that will be charged additionally
Who can apply for Mudra Loan?
The people or the type of business eligible for the Mudra loan is:
- Non – farm small enterprise
- Non – corporate small business
- Shopkeeper, Foodservice unit, small manufacturing unit, Fruit and vegetable vendor and more such type of business
How to apply for Mudra Loan?
- Contact nearest public or private sector bank to present the business plan for Mudra Yojana
- Need to present the detailed description of the plan
- Bank will ask to fill up the application form
- The application will be quickly processed in case of the existing current account or the first time entrepreneur has to open a current account with the bank for getting a loan soon.
What are the documents needed to apply for Mudra loan?
Note: The above list of necessary documents is only indicative. As per necessity on the merit of each case, additional records are obtained depending upon the local requirements.
What is Mudra credit card?
Mudra credit card is a type of credit card, which is issued to the borrower of Mudra loan during loan disbursal. The card can be used to purchase raw materials, machines, and other equipment from the registered vendor, used for working capital where the cash and credit are arranged to the borrowers.
The credit limit of the Mudra card is fixed at 20% of the loan amount, subject to a maximum of Rs 10,000. The first Mudra credit card was issued by Corporation bank on the RuPay platform.
As there are substantial crores of small business units in the country, generating employment opportunities for crores of people. Hence there is a clear indication that nurturing these small businesses will have a positive impact on the GDP of the country, so Mudra Yojana is a constructive step towards making India self-reliant.
I hope by now you doubt about mudra loan interest have been cleared. Let me know if you have questions regarding pradhan mantri loan yojana.