Pradhan Mantri Mudra Bank Scheme is one of the financial support schemes launched by Government of India. Mudra Bank Scheme is a scheme for Small and Medium business owners who want economical or financial support to grow their business. The scheme helps small business owners in getting easier business loan without any collateral or mortgage.
Mudra Bank Scheme has helped lakhs of Indian business owners in expanding their business. The Government of India has made it compulsory for banks to provide loans under the Mudra loan scheme.
The full form of Mudra is Micro Units Development Refinance Agency. Mudra in Hindi stands for money or currency.
According to the full form of Mudra, it supports Micro units of business only. If a micro or small business owner needs finance after starting his or her business, Mudra allows the Refinance for the development of that business as per scheme rules.
Interest Rate for Mudra loan varies from bank to bank. According to Bankbaazar.com, minimum interest rate for Mudra loan is 11.2% offered by Oriental Bank of Commerce while maximum interest rate for Mudra loan is 37% offered by Fullerton.
Most of the banks offer Mudra Loan at reasonable interest rates however. For example, Bank of India provides Mudra loan at interest rate of 12.7% to 14.7% for a tenure between 1 year to 3 years. Central Bank offers Mudra loan at interest rate of 13-14% for same tenure.
Check Mudra Loan Interest Rates for complete details.
For Mudra Loan, you need to provide documents for identity and address verification. Here is a list of basic documents that are required for Mudra Bank Loan.
There are three types of documents that are required for Mudra Bank loan basically –
Check Mudra Loan Documents for complete details.
Mudra Bank provides bank loan to those who need business loan for expanding their pre-established business. Mudra Loan does not ask for any guarantee but only present status of business and future expectations matter for the loan to be issued.
Mudra Bank helps mini or micro business by providing loan for infrastructure and service maintenance.
Mudra Loan can be applied both online and offline by filling Mudra Loan application form. Even though there are banks and financial institutions that provide loans under Mudra scheme, you can apply directly through the online portal of Stand-Up India Scheme called Stand Up Mitra.
Follow these steps to apply online for Mudra Loan –
Follow these steps to apply offline for Mudra Loan –