Mudra Loan is the scheme launched by honorable prime minister of India to provide collateral free loans upto Rs. 10.00 lacs to small business/individuals who wish to start their own business. Under this category loans are categorized as “Shishu” for loans upto Rs. 50000/-, “Kishore” for loans above Rs. 50000/- and upto Rs. 5.00 lacs and “Tarun” for loans above Rs. 5.00 lacs and upto Rs. 10.00 lacs.
- Eligible Customers: Small businessman including service sector, allied agricultural activity
- Type of Facility: Cash Credit and/or Term Loan
- Purpose: Business needs for small businessman, service sector, allied agricultural activity
- Quantum of Finance: Maximum Rs. 10.00 lacs
- Interest Rate: 10.50% pa
- Repayment: Term loan to be repaid between 3 to 5 years.