Pradhan Mantri Mudra Yojana 2020, PM Mudra Loan Yojana 2020

The opening of this scheme Pradhan Mantri Mudra Yojana is done by Prime Minister Mr. Narendra Modi in 2015. Under this scheme, the loan of Rs.10,00,000/- will be provided to the people of the country from which they are able to get start their new own small business. Everyone wants to start their own business but it can be happened because of the lack of money. For this, such scheme is established.

The full name of this scheme MUDRA is Micro Units Development and Refinance Agency Limited. The budget of Rs. 3,00,000/- Crore is prepared for this scheme and about Rs. 1.75 Lakh Crore were distributed as loan among the people of the country for starting up new own business. Those who wants to apply for the loan will not have to pay any of the Processing Charges according to this scheme.

The Government has raised up the time period to repay the loan about 5 Years under this scheme. The Government has given a MUDRA Card to the People for taking the benefit of the MUDRA loan. The Government aim at to provide loan to people for setting up their own business which is generally they can’t affored due to some financial problems of the people that’s why for these problems the Government has taken this effective step.

Under this scheme, many people of the country were able to fulfill their dreams of starting their own business.

The maximum amount that can be issued under this loan is Rs.10,00,000/-. The rate of interest on MUDRA loan is between 8.40% and 12.45%.

MUDRA Yojana Eligibility

Enterprises and entities falling under the following categories comprise MUDRA loan eligibility.

  • Public sector banks
  • Private sector banks
  • Regional rural banks
  • Small finance banks
  • Micro finance institutions
  • NBFCs
  • All non-corporate non-farm enterprises.
  • Primarily engaged in income generation through manufacturing, trading and services.
  • Where the requirement of credit is for maximum Rs.10 lakhs or lower.
  • Engaged in allied agriculture services since 1st April 2016.

MUDRA Yojna Purpose

MUDRA loans can be taken for a variety of reasons that help in creating employment and generating income. Here are the main purposes for which MUDRA loans are taken:

  • Business loan for shopkeepers, traders, vendors and other activities in the service sector
  • Equipment finance for small enterprise units
  • Working capital loan via MUDRA cards
  • Transport vehicle loans

MUDRA Yojna Benefit

  • Micro and small enterprises engaged in income generation are the prime target for extension of loan facilities.
  • To provide any collateral or security to avail of Mudra Loan the borrowers are not require
  • There are no processing charges for availing of the loan.
  • The loans are provided for the funded and non-funded category, inducing an element of flexibility in the usage of funds.
  • The loans can be in the form of term loans, overdraft facility, letters of credit or bank guarantees, thus catering to a wide array of requirements.
  • The Mudra loan scheme does not prescribe any minimum amount.

Required documents for MUDRA Yojna:-

Following are the required documents for MUDRA Yojna:-

  • Mudra application form.
  • Vehicle loan application form.
  • 2 passport size photographs.
  • Photo Identity proof.
  • Address proof.
  • Income proof.
  • Bank statement (last 6 months)