Allahabad Bank MUDRA Loan

Note: Andhra Bank has been merged with Indian Bank , effective from April 1, 2020.

MUDRA (Micro Units Development and Refinance Agency) is a financial institution set up by Government of India for the development and refinancing of MSMEs. The purpose of Allahabad bank’s MUDRA scheme is to provide funds to the non-corporate small business sector through various financial institutions, including banks, MFIs and NBFCs.

All kinds of trading, manufacture and service sector activities can avail for MUDRA loan. The maximum loan amount offered under MUDRA scheme is Rs. 10 lakh whereas Indian Bank offered maximum loan amount of Rs. 5 lakh under Mudra scheme. The maximum repayment tenure offered is up to 5 years. The rate of interest offered depends on the applicant’s profile and vary from lender to lender.

The MUDRA scheme loans have been categorised according to the growth and development of the business into Shishu, Kishor and Tarun.

Loan Amount offered under each type of Mudra loan schemes.

SHISHU Loan: Loans up to Rs. 50,000
KISHOR Loan: Loans from Rs. 50,001 to Rs. 5,00,000
TARUN Loan: Loans from Rs. 500,001 to Rs. 10,00,000 (Not offered by Indian Bank)

Shishu

Under this Shishu stage of MUDRA scheme, the loan will be given up to Rs. 50,000. It is provided for those who want to start their own business or want to open up small units and institutions.

Kishor

Under this Kishor stage of MUDRA scheme, the loan will be given in amount range from Rs.50, 000 to Rs 5 lakh. It is provided to those who are already into business and wants to expand their business or wants some extra funds. It is also to provide those who want to start to their own business.

Tarun

Under this Tarun stage of MUDRA scheme, the loan will be given in amount range from Rs. 5 lakh to Rs. 10 lakh. This is the maximum amount of the loan provided in the MUDRA scheme. It is provided to those who already have a business and now they want to set up a benchmark in their business and only after that they can avail for this MUDRA loan. It is also for those who want to open their start up but this is the maximum limit of the scheme.

There are certain benefits of the MUDRA scheme and they are follows:

The banks have certain criteria for eligibility for giving out loans. For that, the person must have to be eligible for taking MUDRA loan provided by banks.  The eligibility for Allahabad bank is for all weavers and ancillary workers involved in weaving activities.

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While applying for any loan the person have to submit the documents which are required so that they can verify and the person can take the loan. The documents required for MUDRA loan scheme are as follows:

Also Read: How to apply for Pradhan Mantri Mudra Yojana Loan?