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Syndicate Bank is one of the leading commercial banks that offers banking products and also specialized in providing Mudra loan to its customers at an interest rate of 8.75% onwards. MUDRA (Micro Units Development and Refinance Agency) is the financial initiative by the Government of India, to help micro units by providing them sufficient funds in order to start, develop and grow their businesses. Usually, small businesses are unable to avail loans from banks due to lack of insufficient funds to pay interest and also due to lack of collateral. This MUDRA scheme helps in providing loans to MSMEs.
This MUDRA loan scheme is categorized into three categories names as
1. Shishu
Under Shishu loan; the MUDRA provides a loan up to Rs. 50,000 for smaller units. This loan is basically made for those who want to start their own business.
2. Kishor
Under Kishor loan; the MUDRA loan will be offered uptil the loan amount from Rs.50,000 to Rs. 5 lakh. This loan will provide the loan to the start-ups who want to open their business, as well as it will provide to those also who are into the business and want some extra funds or to expand their business.
3. Tarun
Under the Tarun stage, MUDRA provides loans of amount from Rs. 5 lakh to Rs. 10 lakh. This is the maximum loan amount provided under MUDRA loan. It is for those who already have a business and they have to set some benchmark in there business and after that only they can avail and apply for this loan. Also those who want to open their start-up this is the maximum limit.
Benefits of MUDRA Yojana
- To assist the Lower Income Groups (LIGs) and neglected section of country in setting up and developing their business
- To help the SMEs grow and develop their enterprises
- To help in creating easy access to finance for the unbanked and also help to lower the cost of finance
Thus, MUDRA loan will help all small business owners to gain easy access to finance and regulate the policy guidelines for this loan.
Eligibility Criteria
Under the PM MUDRA yojana, all small business and enterprises are eligible to avail the MUDRA Yojana Scheme. The business unit should be either one of the following:
- Small manufacturing unit
- Shopkeepers
- Fruit and vegetable vendors
- Artisans
Related Post: What is the criteria for a business loan?
Documents required for Loan Application
The following documents will be required for applying for MUDRA scheme; the list of documents is as follows:
- Identity proof of applicant such as Aadhar card, Voter ID card
- 2 passport size photograph of applicant
- Quotation of items and machinery to be purchased
- ID proof of SC/ST category if any applicant falls under this category.
- Business proof statements
- Business license
- Business certificate
- Details of suppliers and machineries
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FAQs
Ques. What is the target audience for MUDRA scheme?
Ans. Mudra Yojana scheme has targeted on non-corporate small business(NCSB) which includes business, such as small manufacturing plants , service sector installations, shopkeepers, food-service, food processors, machine operators, repair shops, vegetable/fruit vendors, small industries, etc.
Ques. Where can I found MUDRA Yojana scheme application forms?
Ans. You can find the application forms from the MUDRA loan website or also from the website of banks which are providing MUDRA loans.
Ques. Which banks in India fall under the PMMY scheme or MUDRA scheme
Ans. All Public sector banks, Scheduled commercial banks, Micro Finance Institutions (MFIs), NBFCs and Regional Rural Banks (RRBs) were sent advisories by Department of Financial Service (DFS) to bring loans up to Rs.10 lakh for Non-Corporate Small Business (NCSB). The DFS has also instructed all banks to provide loans under the scheme and put targets per branch.
Ques. What is the maximum amount of loan given in MUDRA scheme?
Ans. Rs. 10 lakh is the maximum amount of loan given in MUDRA scheme.
Ques. What is the repayment period of the Mudra loan?
Ans. The repayment period of the Syndicate Bank Mudra loan is 7 years.