MUDRA LOAN
Eligibility:
Mudra loan eligibility of the year 2020 is:
- Indian Citizenship
- Non-farm income generating activities
- Applicant’s age should be 18 years minimum.
- It must be start-up or business running in small basis.
- Small manufacturers
- Artisans
- Fruit and vegetable dealers
- Shopkeepers
- Individuals engaged with agriculture (livestock, poultry, pisci culture, etc.)
- You need to give a business reason not a personal reason to get a loan.
Activities Covered:
| Agriculture | Start, establish or expand an agriculture-allied business such as an apiary, a poultry farm, a pisci culture business, a dairy farm, a livestock farm, etc. |
| Food | Purchase of machinery or set up of business in making papad, jam and jellies, biscuit and bread, or selling of fruits and vegetables, etc. |
| Service | Set up a salon, boutique, chemist shop, dry cleaning, photocopying facility, etc. |
| Textile | Artisans who want to start, establish or expand a business in chikan work, zari work, embroidery, stitching, knitting, etc. |
| Transport | Purchase of vehicles for carriage of passengers or goods such as e-rickshaw, small goods transport vehicle, taxi, auto-rickshaw, etc. |
Rate of Interest:
It is still not clear about the interest rates which are being provided. Only one such information has been gathered, that all the banks, who are participating under the Mudra Bank Loan Yojana, will have the freedom of choosing their own interest rates, provided that it truly justifies the main scheme and concept of the Mudra Loan scheme for small business start-Up.
Tenure of Assistance:
MUDRA’s refinance assistance will be for a maximum tenor of 36 months which will also be aligned to terms of allotment of MUDRA funds by RBI from time to time.