When it comes to policies for farming and agriculture or awarding funds and loans for any startup in the nation, our Indian government of Indian is seen to be one of the best as they are very advanced and developed in this field. Entrepreneurs who are beginners usually need financial help or funding and loans for their plans and strategies to increase their enterprise and to boost their business. To aid these new entrepreneurs to begin their work effectively, the Indian Government came up with their Pradhan Mantri Mudra Yojana in the 2015 month of April.
This Pradhan Mantri Mudra Yojana helps in fundraising and supporting small businesses. This PM e mudra loan helps first-timers through Micro unit developments and Refinance Agency or Mudra which is an NBFC (non-banking financial company). To get a pm e loan of up to 10 lakh you have to reach certain eligibility criteria. They work through refinancing NBCFs or MFI to furnish the loan to the needy. If you are a new entrepreneur with an out of the box but lacking funds, then all you have to do is apply for the pm e mudra loan, choose the one most appropriate for you, explore the terms and conditions attached and get your loan from the bank.
Types Of Mudra Loan For Startups
There are three types of Mudra loans available for startups namely, Shishu, Kishore, Tarun. The following are the description of the three categories:
- Shishu: The Shishu loan is furnished to you in the initial years. You can get up to Rs 50000 as a Shishu loan. This Shishu loan is usually given for the money required for the entire set-up, infrastructure, raw materials and every other basic amenities required at the beginning of a startup
- Kishore: You can get a loan of Rs 50000 to Rs 5,00,000 through a Kishore loan. This loan type aims in enhancing the business in the growing years
- Tarun: Tarun loan furnishes with a loan amount of more than Rs 5,00,000 but less than Rs 10,00,000
The government ponders over the Shishu loan more than the other two to stimulate the startup idea and entrepreneurship among the blooming generation. This also helps in facilitating the startup system in the country.
Mudra loans are provided only if your application meets the eligibility criteria and the rules and regulations specified.
On the other hand, MFIs or micro finance institutions furnish up to Rs 1,00,000 to help the industries. Women entrepreneurs can avail of more benefits and unique interest rates for their startup plans.
How Startups Can Avail The Loan?
The first thing you must do as an entrepreneur to get a pm mudra loan is to check in which classification your startup enterprise lies in. The categories are framed based on fund requirements and scales. To choose among the server avail schemes Mudra loans, you must explore and know your own requirements and position in the startup sector. Then you can choose one after fitting with the mentioned criteria.
After choosing your category it’s time to decide where to take the Mudra loan from. As the interest rate varies so you must also calculate mudra loan interest rate. After you calculate mudra loan interest rate and the other fields are also clear to you, you can now safely apply for Mudra Loan online or offline from any bank.