Mudra Loan Yojana
The Mudra Loan Bank, also known as Micro Units Development and Refinance Agency Bank is one of the most popular and latest schemes launched by the Prime Minister Narendra Modi government. Its aim is to provide a free hand loan facility to the budding entrepreneurs who have the ability of becoming a profitable business center but need support from the government.
The Mudra Bank is not really a bank but a scheme that would regulate bank on micro finance to the enterprises. Under the scheme, any applicant can apply for a business loan ranging from Rs 50,000 to 10 lakhs and get instant approval, subject to satisfaction of documentation part. The scheme would also ensure to reach where normal banking products are not able to cater to till date, thereby creating an environment of sustainable business growth across the country.
Benefits of Mudra Bank Loan Yojana
The advantages of Mudra Loan are many; some of which are:
- The Mudra Loan would provide empowerment and timely finance to business working at small scale and micro level.
- When it comes to doing business in India, capital investment is one of the roadblocks for many. During such situations, Mudra loan would come handy for the entrepreneurs and thus their dreams of owning a profitable business would be realized through this little help.
- If there are such business promotion schemes in the country, it would only add to the overall revenue for the nation and would be an inside-out growth for the economy.
- It is a win-win situation for entrepreneurs, banks and the economy. The growth of the former would lead to a direct or indirect benefit to the latter.
- One of the core reasons for Mudra Bank Financing is that those entrepreneurs who want to start in remote areas do not get access to micro finance. With this scheme, they would now have access to the capital support and thus become a profit center.
- Earlier, if someone in remote areas had to start a business and get some money from anywhere, they would have to depend on local money lenders who would charge hefty interest rates thereby creating an unbearable debt web. In those conditions, the borrower was always at the receiving end. With Mudra bank scheme in place, this system of financial exploitation by the money lenders would be stopped to a significant level.
- There is something for each kind of borrower entrepreneur. The range of loan is from Rs 50,000 to Rs 10 lakh and thus if someone requires low money, they can get that instantly even.
- Mudra bank is a standard scheme to be followed by all banks. This way, banks would have to follow a uniform credit financing to the borrowers.
- Mudra Bank scheme loan comes with a Mudra Card that would be like a credit card. Borrowers can make optimum use of this card at times of urgent necessities.
Overall, the scheme is great. It’s up to the general masses how they can reap the benefits out of the scheme. Unfortunately, in our country, those who are informed and educated about their rights live in urban establishments. Whereas, those who are weaker and needy, living in rural areas, do not know about these schemes and their rights. The best approach would be in proper education of the scheme.
Interest Rates in Mudra Bank Loan
It depends of the type of business you have and the bank you choose to get it. There are no such clear parameters defined as of now.
Documents Required in Mudra Bank Loan
You would be asked for all the documents related to your business, your credit history, your identity proof and address proof, as this is a collateral free loan no guarantor would be asked.
How to Apply for Mudra Bank Loan and official website
Walk to your nearest bank and ask for the Mudra Loan form. Please fill it and then bank will take your form with the required documents. You would be called if you are selected. Women SC, ST and OBC would be given preference. For more details please visit the official site http://www.mudra.org.in/