Introduction:
E-Mudra loan is a government initiative under the Pradhan Mantri Mudra Yojana (PMMY) to provide financial support to micro and small businesses in India. The loan scheme was launched in 2015 by the Government of India, and it aims to help small businesses and entrepreneurs with funding to grow their businesses. In this article, we will discuss in detail about E-Mudra loan, its features, eligibility criteria, types, interest rates, and application process.
Features of E-Mudra loan:
- Loan Amount: E-Mudra loan provides funding to small businesses and entrepreneurs. The loan amount ranges from Rs. 50,000 to Rs. 10 lakhs, depending on the business’s nature and requirements.
- Loan Tenure: The loan tenure ranges from 3 years to 5 years. The repayment of the loan is done in EMIs (Equated Monthly Installments).
- No collateral required: E-Mudra loan does not require any collateral or security to avail of the loan. This makes it easier for small businesses to access credit.
- Quick Disbursal: E-Mudra loan is a fast and hassle-free loan. The loan gets disbursed within 7 to 10 working days after the loan application is approved.
- Flexible repayment options: The borrower can choose the repayment option as per their convenience. They can repay the loan amount in EMIs, or they can make a lump sum payment at the end of the loan tenure.
Eligibility Criteria for E-Mudra loan:
- Age: The minimum age of the borrower should be 18 years, and the maximum age should not exceed 65 years.
- Business Category: The borrower should be involved in a micro or small business enterprise, such as manufacturing, trading, or service sector.
- Business Vintage: The borrower should have a business vintage of at least 6 months.
- Credit Score: The borrower should have a good credit score and should not have any default in loan repayment.
Types of E-Mudra Loan:
- Shishu: This loan scheme provides funding up to Rs. 50,000 to small businesses and entrepreneurs who are in the initial stage of their business.
- Kishor: This loan scheme provides funding from Rs. 50,000 to Rs. 5 lakhs to small businesses and entrepreneurs who have established their business and are looking for expansion.
- Tarun: This loan scheme provides funding from Rs. 5 lakhs to Rs. 10 lakhs to small businesses and entrepreneurs who have an established business and are looking for further growth.
Interest Rates:
The interest rates for E-Mudra loans vary depending on the loan amount and tenure. The interest rates are fixed, and the borrower needs to pay the interest along with the principal amount in EMIs.
Application Process:
The application process for E-Mudra loan is straightforward and can be done online through the official website of Mudra Bank. The borrower needs to fill in the loan application form with all the necessary details and submit it online. The bank verifies the details and checks the eligibility criteria. Once the loan application is approved, the loan amount gets disbursed to the borrower’s bank account within 7 to 10 working days.
Conclusion:
E-Mudra loan is a great initiative by the Government of India to provide financial support to small businesses and entrepreneurs. The loan scheme is designed to help micro and small businesses grow and expand. The loan is easy to avail and comes with flexible repayment options. Small businesses can take advantage of this loan scheme to fund their business operations and achieve growth. With its simple eligibility criteria, quick disbursal, and competitive interest rates, E-Mudra loan is