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 and the repayment period is of 5 years. The rate of interest offered depends on the applicant’s profile and vary from lender to lender.
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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
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.
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.
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.
Benefits of MUDRA Scheme
There are certain benefits of the MUDRA scheme and they are follows:
- The MUDRA scheme will help the small and micro enterprises (SMEs) to develop and grow their enterprises
- The MUDRA scheme will help all the small business owners to gain access to finance
- The MUDRA scheme will assist the lower income group and neglected section in our country to set up and develop their business
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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Documents required for Loan Application
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:
- ID proof such as: PAN card, Aadhaar card
- Address proof
- Photograph of applicant
- Business identity proof
- Business address proof
- Income tax statements of last 6 months
- KYC documents
- Supplier details of machineries
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FAQs on Allahabad bank Mudra Loan
Ques. What is the maximum amount in MUDRA loan given by Allahabad bank?
Ans. The Allahabad bank gives maximum loans up to Rs.10 lakh in MUDRA scheme.
Ques. What is the repayment procedure of MUDRA scheme is Allahabad bank?
Ans. The repayment will be within a period of 5 years in suitable monthly instalments with a maximum moratorium period of six months.
Ques. How can I approach for Allahabad bank for MUDRA loan?
Ans. To approach Allahabad bank for MUDRA loan you can visit the nearest branch of Allahabad bank to avail MUDRA loan or you can visit the website of Allahabad bank: https://www.allahabadbank.in/ or you can also call the bank on the toll free number which is: 1800 22 0363/ +91 22 2683 6061.