Key Features of Mudra Loan
- Loan Amount – Up to ₹10 Lakhs, categorized into three schemes:
- Shishu – Loans up to ₹50,000
- Kishor – Loans from ₹50,001 to ₹5 Lakhs
- Tarun – Loans from ₹5 Lakhs to ₹10 Lakhs
- No Collateral Required – Mudra Loans are collateral-free, making them ideal for small and micro businesses.
- Low Interest Rates – Affordable rates compared to conventional loans, depending on the lender.
- Flexible Repayment Tenure – Loan repayment period ranging from up to 5 years.
- For All Sectors – Available for small manufacturers, traders, artisans, service providers, and entrepreneurs.
- Government-Backed Security – Loans are covered under the Credit Guarantee Fund for Micro Units (CGFMU).
- Usage Flexibility – Can be used for working capital, business expansion, machinery/equipment purchase, or other business needs.
- Minimal Documentation – Simple paperwork for quick approval and disbursal.