Mudra Loan

MUDRA (Micro Units Development and Refinance Agency) loan is a government initiative in India aimed at providing financial support to micro-enterprises and small businesses, particularly those operated by individuals from marginalized and low-income groups.

Here's a detailed overview :


1.      Eligibility Criteria  :


2      Impact and Achievements   :

Since its inception, the MUDRA Loan scheme has had a significant impact on the micro and small enterprise sector:

Features and Benefits of  Mudra Loans :

Purpose:

 The loans can be used for various business activities, including working capital requirements, purchase of equipment, machinery, vehicles, etc.


Interest Rates:

 The interest rates on MUDRA loans are usually competitive and vary depending on the lender and the specific terms of the loan.


Collateral: 

Generally, MUDRA loans are collateral-free for loans up to Rs. 10 lakhs, making them accessible to small business owners who may not have significant assets to pledge as security.


Repayment Tenure: 

The repayment tenure for MUDRA loans can vary from lender to lender but is typically structured to be affordable for micro-enterprises and small businesses.

Types of Mudra Loans: