What is Pradhan Mantri MUDRA Yojana?
The Pradhan Mantri MUDRA Yojana was introduced by Indian government in 2015. This special scheme is coupled with ‘Make-In India’ campaign. By opting for this loan, micro and small level Indian enterprises can avail easy funding.
A major part of rural India does not have proper banking and finance facilities from where they can get easy finances. Even in urban sector, many lending agencies do not give business loan for small amounts to very small business enterprises. To progress India’s economic sector these micro and small business set ups helps equally like the medium and huge business segments. Thus providing them apt financial backing with nominal interest rate is seen as a necessity. Keeping this necessity in mind, the Indian government introduced the Pradhan Mantri MUDRA Yojana.
Advantages and Benefits of Pradhan Mantri MUDRA Yojana:
- The main objective of Pradhan Mantri MUDRA Yojana is to provide banking and finance services in rural as well as urban areas to the needy people.
- Pradhan Mantri MUDRA Yojana offers financial backing for the empowerment of micro-small businesses as well as to start ups.
- By opting Pradhan Mantri MUDRA Yojana, people can get business loan for small amounts from legitimate lenders on nominal interest rates.
- Under Pradhan Mantri MUDRA Yojana government is the credit guarantee for the borrower. That means if the loan borrower fails to pay off the loan, government bears the loan’s loss responsibility.
- The smallest business units like shop keepers and food vendors can also get benefits of Pradhan Mantri MUDRA Yojana.
- The parts of India where the basic banking facilities are not available, Pradhan Mantri MUDRA Yojana helps them by offering financial aid.
- The repayment tenure of Pradhan Mantri MUDRA Yojana loan is of 5 to 7 years*.
- To increase the ratio of women entrepreneurs and for their empowerment, government has special provisions under Pradhan Mantri MUDRA Yojana for women. Women are offered reduction in interest rate for this loan.
- Pradhan Mantri MUDRA Yojana also offers refinance schemes with designated banks.
- Micro Credit Scheme is offered to the individuals for specific income generating micro enterprise activity under Pradhan Mantri MUDRA Yojana.
- The Pradhan Mantri MUDRA Yojana is coupled with ‘Make-In India’ campaign initiated by Indian government to facilitate investment, foster innovation, enhance skill development, project intellectual property and build best in class manufacturing infrastructure in India.
- The Pradhan Mantri MUDRA Yojana loan is an unsecured type of business loan that means the loan borrower does not require keeping anything as mortgage or collateral to the money lender.
- The Pradhan Mantri MUDRA Yojana loan is a multipurpose loan.
- The funds given under the Pradhan Mantri MUDRA Yojana are to be used for business purposes only.
