October 21, 2021

Dallas Mavericksjerseys

The Business Ordered

Benefits And Advantages Of Mudra Yojana Loan

2 min read
The Benefit of a Loan with a Long-Term vs. Short-Term Maturity

India has ample small and medium-sized businesses which need funding to expand or grow significantly. Given the increasing exposure and knowledge available to us, more and more of these businesses are coming up in recent years too. To fund micro and small enterprises, the government launched Pradhan Mantri Mudra Yojana (PMMY) in 2015 to allow the MSME to borrow funds up to Rs. 10 lakhs. There are three types of products that are a part of this scheme:

  • Shishu loan: Aspiring entrepreneurs can borrow up to Rs. 50,000/- under this category, and no processing fee is applicable to this loan type.
  • Kishore loan: Loan amount between Rs. 50,001/- to Rs. 5,00,000/- can be availed under this category, and no processing fee is applicable to this loan type.
  • Tarun loan: Business owners can avail of loan amount between Rs. 5,00,001/- to Rs. 10,00,000/- can be availed under this category, and a processing fee of 0.50% (plus tax) is applicable to this loan type.

Check out some of the top advantages of the Pradhan Mantri Mudra Yojana:

  1. Government aid- One of the most significant benefits of this loan scheme is that the government assumes the responsibility for your loan if you default. 
  2. No collateral loan- You do not need to place your personal or business property as a collateral to avail of Mudra loan under the Pradhan Mantri Mudra Yojana.
  3. Accessibility- The Mudra Yojana scheme is available for MSME businesses in rural and urban areas.
  4. Extended tenure- The tenure of this loan can be extended up to 7 years if needed by the business. Alternatively, it can be paid in a lesser time frame as well if the business owner wishes.
  5. Interest rates- This scheme offers a competitive rate of interest that is somewhere between 8.40 to 12.45% with little or no processing fee for the loan, i.e., smaller loan amounts have no processing fee.
  6. Debit card- You can apply for a Mudra debit card once the loan is sanctioned, as it offers instant access to funds and assures hassle-free use.
  7. Overdraft facility- Additionally, if you can avail of a PMMY loan, then the very same Mudra loan eligibility criteria allows you to take advantage of the overdraft facility balance that is up to Rs. 5,000/-.

These types of loans have been initiated by the government to not only lend to non-agriculture and non-corporate businesses that fall under MSME but also refinance support to banks and NBFCs by facilitating higher funds for lending.

In conclusion:

It has been a challenging task for MSMEs in India to acquire funding, and the Pradhan Mantri Mudra Yojana by the government has been an aid to these enterprises since its inception. It has helped thousands of small, micro and non-farming non-corporate sector businesses to grow exponentially to date.

To understand more about the PMMY scheme and know the Mudra loan eligibility criteria, visit Finserv MARKETS. You can find all the details about this loan scheme and even get help for additional funds with quick disbursal and minimal documentation. 

dallasmavericksjerseys.com Copyright © All rights reserved. | Newsphere by AF themes.