MUDRA Loan Subsidy

Mudra Loan under Pradhan Mantri Mudra Yojana (PMMY), business loans, working capital loans, or Overdraft are offered to individuals, self-employed professionals, business owners, entrepreneurs, and MSMEs to meet their day-to-day business requirements and for business expansion purposes. However, there is NO subsidy offered under Mudra Loan by any financial institution in India.

MUDRA (Micro Unit’s Developments and Refinances Agency) loan scheme was launched under  Pradhan Mantri MUDRA Yojana (PMMY) with an aim to offer financial support in form of credit facilities to non-corporate, non-farm small, and micro-enterprises. To avail the MUDRA loan, the applicants can approach the nearest Bank branch of selected and eligible Private and Public Sector Banks, NBFCs, Cooperative Banks, Regional Rural Banks, etc.

Also Read: How to Apply for SBI e–Mudra Loan

Types of 3 Mudra loan schemes along with offered loan amount:

MUDRA loan is offered under three loan scheme categories as below mentioned with additional information:

Must Read: How to apply for Mudra loan online

The rate of interest offered by financial institutions under Mudra Yojana for its loan schemes named as Shishu, Kishor, and Tarun shall vary from lender to lender and shall depend upon the applicant’s profile and business requirements. The maximum repayment tenure offered by Banks is up to 5 years and may exceed as per business requirements and special cases.

This loan is available to applicants who comply with the specific guidelines under this loan:

Also Read: Documents required to avail the Pradhan Mantri Mudra Loan

The primary objective of a MUDRA loan is to extend credit to Small and Medium Enterprises (SMEs) at all stages of growth. To ensure this, the products offered under the MUDRA Yojana are designed in a way to suit and meets the requirements of various businesses. MUDRA loans are extended to cover the following activities:

Check – Mudra Loan Interest Rates of Top Banks

The Pradhan Mantri MUDRA Yojana offers assistance to Small Scale Industries (SSIs) and entrepreneurs by offering loans at the low rate of interest and also offering MUDRA cards with a pre-decided credit limit. Until now, there is no statement made by the Prime Minister or the Ministry State of Finance on a subsidy being provided on MUDRA loans.

There has been an immense growth in the demand for small business loans in the market and to cater to the diverse financial requirements of these businesses various new business loan schemes have been introduced. Despite all this, a major section of micro-enterprises is still unable to find funding for their businesses. To provide financial support to such businesses MUDRA loans were introduced. These loans, through money, assist the micro-enterprises in entering the mainstream market.