Very often, it happens that you would have thought of taking a loan for business purpose but then rethought because of the minimum amount involved or the high collateral or security amount had to be deposited.
But the one solution to these hassles is the Mudra Loan Scheme. Without delay let’s get into the depth of it and know more about this amazing government loan scheme.
What is Mudra Loan?
On April 8, 2015, the Indian governmentannounced the Pradhan Mantri MUDRA Yojana (PMMY) to support numerous non-farm micro-businesses and non-corporate businesses with their financialrequirements.
The scheme was presented to broaden loans of up to Rs.10 lakhs to these enterprises. These loans are titled as MUDRA loan. The loans can be applied from any Non-Banking Financial Companies (NBFCs), Micro Financing Institutions (MFIs), Commercial Banks, Small Finance Banks, and Regional Rural Banks (RRBs)
Mudra Loan For Women
In accordance with the recent research, there are about 14% of women of total entrepreneurs in India. To stimulate and strengthenaspiring women to begin their own business, various initiatives are being announced by the Indian government and among many, one such initiative is the Mudra loan.
Mudra Loans comes along the sole motto of nurturing a culture of entrepreneurship across India which was published under Pradhan Mantri Mudra Yojana (PMMY).
Financial institutions such as banks and NBFCs can offer Mudra loans to women who are aspiring to start their own enterprises in India.
Anyone who is seeking to launch, broaden, help or modernize their own small and mid-size enterprise can avail the PMMY loans. Nonetheless, interestingly in the past 4 years since its launch in 2015, 70% of the loan accounts have been authorized to women entrepreneurs.
In accordance with the official government report for 2019-2020, the highest number of takers for PMMY loans are small and mid-size enterprisesat present which are at the start-up phase.
In other words, Shishu loans are the most demanding loan hogging 86% of the total number of loans released. Kishore loans stood at 11% whereas Tarun loans clocked 3%.
The official website of Mudra Yojana states that 62,237,981 PMMY loans which are a total of Rs. 3,37,465.13 crore have been sanctioned in 2019-20. More than 10.03 million new loan accounts were sanctioned in 2018-2019 and PMMY loans remain constant to develop in popularity.
The MahilaUdhyami Yojana is a loan scheme structured exclusively under Mudra Scheme for supporting women entrepreneurs, where women from all paths of life can take advantage of such loans. Although, they would be required to fulfil a definite set of eligibility criteria in order to get the loan.
Eligibility Criteria To Avail Mudra Loan
Women entrepreneurs leading the production and manufacturing enterprises are eligible to take the advantage of PMMY loan. For instance, artisans, weavers, craftsmen, and so on.
Women entrepreneurs who are aspiring to start, broaden or modernize businesses offering services like tailoring, auto-repairing,phone repairing, photocopying, beauty parlour services and more can take advantage of such loans.
Important Factors of Mudra Loan for Women
Alongside the eligibility criteria, there are various other significant factors that should be born in mind while applying for a Mudra Loan for Women.
- Loan Amount
Under Mudra loans for women, a woman can apply for a loan amount up to Rs. 10 lakhin order toinitiatea small or medium-sized enterprise. Besides, women entrepreneurs may also pick a loan to broaden their existing SME.
- Purposes
The loan amount can be taken in use for a number of purposes, like: –
- To fulfil working capital requirements
- To get fixed assets, like equipment, furniture, tools and machinery
- Collateral
Mudra loan scheme does not ask for any kind of collateral to be eligible.
- Repayment Tenure
The duration of these loans can standanywhere around 3 to 5 years and can be paid off by EMIs. However, for women, tenure can go up to 7 years.
How ToApply For A Loan Under MUDRA Scheme?
To get rid of hassles of visiting the bank and standing in queues for long durations, you can fill out an online loan application under Pradhan Mantri Mudra Yojana(PMMY) through the official website of any of the banks which are associated with the scheme.
Here are the steps you need to follow in order to avail of the loan amount into your bank account: –
- Download your loan application form.
- Fill out all the information.
- Opt for a commercial or public bank.
- Upload any appropriate documents and go throughfurther formalities as specified by your opted bank.
- The loan should now be approved and further disbursed in your account.
If you are a woman who is aspiring to power up the nation’s economy with your start-up and lacking in funds, undoubtedly, opt for a special entrepreneurial loanfor women under Mudra Loan Scheme. For more precise details and statistics, you can also visit the official website of MUDRA.
