What is Mudra Bank?

Mudra Bank

What is the role of MUDRA Bank in India?

Micro Units Development and Refinance Agency Bank (MUDRA Bank) is a new institution set up by the Government of India for the development of micro-units and refinance of MFIs to encourage entrepreneurship and startups.

Mudra Bank had announced by the Honorable Finance Minister during Union Budget to uplift support unorganized sector.

It has two types of products like refinance for the micro-units having loan requirements from Rs 50 thousand to 10 lakhs and support of Micro Finance Institutions (MFI) for on landing.

MUDRA will refinance to micro-business under the scheme of Pradhan Mantri MUDRA Loan Yojana. Mudra Scheme is open for all and it is collateral-free.

Govt of India has released the instructions to the bank to provide Mudra loans to applicants. Now several banks have reduced the mudra loan interest rate up to 2%. It is a golden opportunity to get a mudra loan for business at the lowest rate.

Latest Update:-

Now mudra schemes have doubled the online e-mudra loan amount from 50,000 to 1,00,000 from Nov. 2020 and apart from that lots of banks are providing mudra loans at very fewer interest rates. 

Govt. of India & Financial Inclusion team is monitoring all the processes of banks and penalizing on negative approach so that people will get mudra loan from the Bank. 

What is MUDRA Scheme?

Under the guideline of the Pradhan Mantri MUDRA Scheme (PMMY), MUDRA Bank has launched three initiative products the name of SHISHU, KISHOR & TARUN to signify the stage of growth and funding needs of the micro-units, startups, or entrepreneurs.

MUDRA is refinancing through State level institutions, like NBFCs, MFIs, Regional Rural Banks, District Banks, Cooperative Banks, Nationalize Banks, Private Banks, Primary Lending Institutions, and other intermediaries. Apart from the bank, govt has set up another bank to the name of Vikas Vitt Sansthan ie Vikas Vitt Bank

Click here for more details….

What is the Rate of interest of the Mudra Loan?

There is no fixed Interest rate for the MUDRA loan. According to sources banks are charging around Base Rate + 1% to 7% minimum.

The interest rate can be higher according to risk and customer’s profile and it can be different in all banks. So please check your nearest bank branches once before applying for the MUDRA Loan. There is no subsidy under the PMMY Mudra loan.

The terms and conditions of the lending agency may have to be followed for availing of a loan. The Interest rates of Mudra loans may vary from bank to bank. Please visit the branch to get the current interest rate.

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Who is eligible for MUDRA Loan?

Any Indian who is involved in income-generating activities like manufacturing, processing, trading, service sector and whose requirement is under 10 lakh, can approach Banks, MFIs, Financial Institutions, or NBFC for availing of MUDRA loans under Pradhan Mantri Mudra Yojana (PMMY).

MUDRA is refinancing the agriculture sector under PMMY with traders of vegetables & fruits covered under PMMY Loan Schemes.

Modi’s government had decided to provide an additional fund of ₹ 1 Lakh crore to the market to generate jobs.

40,000 Crore Rupee for Mudra Shishu Loan Scheme.
35, 000 Crore Rupee for Mudra Kishor Loan Scheme.
25, 000 Crore Rupee for Mudra Tarun Loan Scheme.

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Share your experience with us at mudrakibaat (at) gmail.com

We are getting lots of complaints from users that banks are not showing interest to disburse loans under the MUDRA scheme. We are working on that issue and found that Banks are not showing interest because it is unsecured & can be NPA on a large scale.   

Author:- Jeevan Pant

Mudra loan is the favorite scheme of the Modi government. It is feeding the poor and weaker to start a business.

mudrabank.com does not belong to govt. of India or any other MUDRA or any other Govt. agency. We made that website to share experiences & exchange information only. MUDRA is not a bank.

It has been constituted to make policy for MUDRA Loan & provide the collateral loan to unorganized sectors & individuals.

We will give you all updates regarding the Mudra policy and updated schemes. You can download all bank’s mudra loan application forms along with e-mudra web links.

Now millions of people get benefits to mudra & running their business successfully. Mudra has changed the entire banking scenario & the banking system. No collateral is necessary for a mudra loan.

Govt of India released around 9 lakh crore rupees to disburse MSME, a Small sector to boost India’s economy via bank. Now the valuation of MSME companies has increased and now 200 crore companies will consider MSME firms and get all the benefits of MSME. 

Mudra scheme is providing 2x mudra loan online, click here now

The finance minister has also decided on several benefits for the MSME sector like collateral-free loans under the PMMY Mudra scheme. Source confirms that Govt is also planning to increase the sizing of loans from 10 Lakh to 50 lakh.

Get a Start-usp loan from Mudra-bank online. For more details click here. 

Need MUDRA Loan, Click here to apply SBI emudra Online.

 

Frequently Asked Questions

What is Mudra Bank?

Micro Units Development and Refinance Agency Bank (MUDRA Bank) or Mudra Loan, is a new institution set up by the Government of India for the development of micro-units and refinance of MFIs to encourage entrepreneurship, start-ups.

Who can apply for a Mudra loan?

Any India can apply for a Mudra loan at any bank branch that is authorized to disburse a mudra loan.

What is Mudra Loan eligibility?

Individuals, Small manufacturers, Farmers, small entrepreneurs, start-ups, shopkeepers, fruit and Vegetable dealers, vendors, restaurants, Dentists, chemists, bakeries, juice, hotels, etc are eligible for mudra loans.

What is the Age Limit for Mudra Loan?

There is no maximum age limit for a mudra loan application, but the minimum age is 18 years. Rest every bank has its own policy and they will approve loans accordingly.

What are mandatory documents for a mudra loan?

All below documents are mandatory for the mudra loan application
Identity proof like Pan Card, Aadhaar Card, Voter I Card, Manrega Card.
Residence proof-like Aadhaar Card, Voter I Card
Application form of concern bank.
Passport size photos and
The project report will increase your chances to get a loan.

What is the mudra loan interest rate?

MUDRA loans interest rates are not fixed and it is based on RBI’s policy which decides every quarter. But it is between 8.40% and 12.45% for 1 to 5 years accordingly.

Which bank is providing mudra loans at the lowest interest rate?

Every bank has its own policy on mudra loans but SBI is providing Shishu loans without interest. SBI, BOB u0026amp; PNB is providing mudra loan on low interest. Please check the bank policy before applying, it may change quarterly.

What is the procedure for mudra loan registration?

You can download the mudra loan application form from the bank website and apply online/ offline at the bank branch with mandatory documents.

Is Mudra Loan available for education?

No, right now mudra loan is not available for education purposes. Pls, visit the bank website for more details because the bank has the right to change its policy.

Is subsidy available under the Mudra loan scheme?

There is no subsidy under the Mudra Loan scheme but if you are applying for a mudra loan under state, central govt.  or any other scheme than you can avail the subsidy from the concerned authority.

What is mudra loan approval time/duration?

There is no time frame and SLA to approve the mudra loan. But few banks are providing Instant mudra loans online. SBI is the leading bank that is providing the fastest e-mudra loan online.

What is the mudra loan repayment schedule?

There is two standard procedure to repay a mudra loan
Term Loan:- To be repaid in suitable installments with a suitable moratorium period as per cash flow of the business.
CC Limit:– Repayable on demand. Renewal and Annual Review as per internal guidelines of the Bank

How can we open an account in Mudra Bank?

Mudra bank is a virtual bank or agency. Which is constituted by govt. of India u0026amp; monitor by SIDBI. There is no option to open an account in Mudra-Bank. It is a business loan scheme. Your bank will complete the entire process of the PMMY Mudra loan.

Who is MSME/ SME in India?

Recently govt has changed the MSME policy, now 250 crore companies will be called MSME. Earlier it was 100 crore before lockdown.