Since economic liberalisation was initiated in India, Micro, Small, and Medium enterprises have actively contributed to India’s growth. It has been creating innumerable employment opportunities at different levels. One challenge almost all MSMEs have and continue to face is financing. Entrepreneurs do several rounds of investor offices to get the necessary financing.

If you are a budding entrepreneur, you need not worry about financing. You can apply for a Business Loan under the Pradhan Mantri MUDRA Yojana. It is a flagship scheme by the Indian government providing financial support to small micro-entrepreneurs. MUDRA Loan was launched on April 8, 2015. Since then, it has been leading the wave of entrepreneurship in India. It has done so in the following ways:

Extending a reasonable line of credit

PM MUDRA Yojana extends a reasonable line of credit. You get three types of MUDRA Loans: Shishu, Kishore, and Tarun. Shishu offers a credit line of Rs. 50,000, while Kishore and Tarun offer a credit line of Rs. 50,000 to Rs. 5 lakh, Rs. 5 lakh to Rs. 10 lakh, respectively. This means you can get the necessary funds to set up and expand your business.

Eliminating collateral provision

MUDRA Loan is a collateral-free Loan facility. Hence, you need not risk your assets as collateral. You need to meet the basic eligibility criteria to apply for the Loan. You can apply for a Loan at a MUDRA partner bank, micro-financing institution, and non-banking financial companies.

Supportive towards all businesses

Mudra Loan is supportive of all businesses. So, whether you own a sweet shop, motorcycle repair garage, beauty parlour, or rickshaw, you can apply for a Mudra Loan. You can use the Loan amount to set up your business, expand an existing business, buy machinery, invest in capital assets, or finance other business-related activities.

Quick Loan disbursal

You need not wait several months to get the necessary financing for your business. Today, a Business Loan gets processed soon, given that you meet the eligibility criteria entirely. The Loan amount is credited to your account, or a cheque is issued. This means you get instant access to the funds and can utilise it.

Flexible repayment

You can apply for a Mudra Loan at an affordable interest rate. You can enquire about the rates by visiting the bank in person or checking their website. You can also apply for the Loan for a tenure of up to 36 months. Repay the Loan in affordable equated monthly instalments spread across the term. This means you can repay the Loan amount without feeling burdened and defaulting.