Mudra Loan is the new scheme launched by the Govt of India which is beneficial for any Indian citizen who has a business of non-farming income-generating activities with a credit need up to Rs. 10 lakhs. These eligible enterprises can apply for a loan up to Rs. 10 lakh under the MUDRA Yojana. (Micro Units Development & Refinance Agency Ltd.)
Overall eligible enterprises are comprised of Non-corporate Small Business Segment (NCSB)
Millions of proprietorship/partnership firms operating as small manufacturing units, service sector units, shopkeepers, fruits/vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors, and others in rural and urban areas make up the Non–Corporate Small Business Segment (NCSB).
There are three broad categories under the Mudra Loan scheme for which there is different loan availability. The broad categories are as under:
1. Shishu Loan
2. Kishor Loan
3. Tarun Loan
For Shishu Loan, Businesses can avail loans up to Rs. 50,000
For Kishor Loan, Businesses can avail loan from Rs. 50,001 to Rs. 5,00,000.
For Tarun Loan, Businesses can get loan from Rs. 5,00,001 to Rs. 10,00,000.
There are no processing fees for Shishu Loan and Kishor Loan categories and Tarun Loan is charged with a 0.5% processing fee
Under Shishu Loan, new businesses in a very early stage or who are going to start their businesses are eligible for a loan are provided with financial assistance. Borrowers also need to provide details regarding machinery suppliers.
Under Kishor Loan, businesses are provided with financial assistance for business expansion. Borrowers need to report about the economic viability of business expansion
Under Tarun Loan, businesses can avail loans up to Rs. 10 lakhs for business expansion and growth.
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