Small scale enterprises operating in India employ around 40% of the total labour force of the country; it is a vital sector for the Indian economy. However, several hindrances are faced by companies functioning in this sector stopping them from achieving the optimal economic growth of India.
To remove this obstacle, the central government launched the Pradhan Mantri Mudra Yojana, intending to provide hassle-free unsecured credits to budding businesses present in the country.
Mudra Yojana interest rates are relatively lower than on other forms of credit and are customised to assist business which falls in this sector.
However, specific eligibility criterion has to be met to avail a loan under this policy successfully -
- Companies primarily engaged in the industrial sector.
- Start-up businesses with a solid development plan can avail a loan under Pradhan Mantri Mudra Yojana.
- Small scale vendors and shopkeepers who are looking for funds for expansion of a business.
After satisfying the eligibility criteria, choosing the right option to avail a loan is the next step.
Three kinds of business loans are primarily extended under the Mudra Yojana, such as -
- Shishu – Credits of up to Rs. 50,000 can be availed by individuals seeking advances to launch their start-up business.
- Kishor – Loan amount ranges from Rs. 50,000 to Rs. 5 Lakh, optimal for individuals looking to avail funds to meet working capital or other financial requirements at low Pradhan Mantri Mudra Yojana interest rates.
- Tarun – Credits available under this segment range from Rs. 5 Lakh till up to Rs. 10 Lakh.
Along with relatively low Mudra Yojana loan interest rates, several other benefits are offered to borrowers. For example, no collateral guarantee is required to obtain the funds. Check your eligibility to avail such a business loan to meet your organisational expenses and requirements.
