What is a Mudra Loan? Eligibility and Mudra Loan Rate of Interest

The Pradhan Mantri MUDRA Yojana (PMMY) is a scheme introduced by the Government of India in 2015. The scheme was launched to provide loans to micro and small businesses, without any collateral or guarantor, for 3 years. Mudra loan rate of interest is low and Eligibility for Mudra Loan is also lenient when compared to other loans available.
The PMMY has been hugely successful, with more than 8 crore loans being disbursed so far. This has led to the creation of 1.5 crore jobs in rural areas and helped generate an income of Rs. 2 lakh crores annually for these small businesses.

How to Apply for a Mudra Loan Online?

The Pradhan Mantri Mudra Yojana, also known as PMMY, the scheme is currently open for applications. Mudra Loan’s online application and the offline procedure are as follows.
1. The first step for applying for a loan under this scheme is Mudra loan online application with the Udayamimitra website.
2. After registration, you will have to fill up a form that will ask you about your details, bank account details, and other financial information like your Aadhaar number and PAN card number, etc.
3. You can apply for a loan from Rs 10,000 to Rs 10 lakhs with a tenure of 3 years or 5 years depending on your requirement and eligibility criteria.
4. The borrower can also approach lending institutions like NBFCS, MFIs, Small Finance Banks, RRBs, and Commercial banks. To know more about the mudra loan rate of interest and Mudra loan online apply visit these banks sites: SBI, Kerala Gramin Bank, Ujivan small finance bank etc.
5. The applicant should be an Indian Citizen who has a business plan and the business should be a non-farm income-generating activity.
6. The borrower should identify and submit the stage growth under categories like Micro unit, Entrepreneur, and the developed growth business.

What to Keep in Mind for Mudra Loan Online Apply?

The Mudra scheme is a scheme for the development of micro-enterprises.
The eligibility for Mudra Loan Online Apply is as follows:
-a citizen of India
-age 18 or above
-residential address in India
-a self-employed person or a person engaged in any other form of non-agricultural activity.

How to Make the Most Out of Your Mudras Loan Offer?

The PMMY scheme has two components:
1. Mudra loan rate of interest Subsidy Scheme
2. Credit Guarantee Scheme
The mudra loan rate of interest starts from 7.05% per annum and subsidy of 4% per annum on the interest payable on loans up to Rs 10 lakhs and 3% per annum on the interest payable on loans above Rs 10 lakhs up to Rs 25 lakhs. The credit guarantee component provides credit guarantees for banks and NBFCs against their exposure under Mudra Loans up to 75%.
The scheme has been successful in providing loans for many people who would not have been able to get a loan otherwise. One of the benefits of this scheme is that it does not require a credit history.
The Mudra scheme Pradhan Mantri MUDRA Yojana (PMMY) is an excellent way to help people who need money but cannot get a loan from other sources.

What business can be started using Lower Mudra Loan rate of interest?

Paper Bag Making Business:

Paper bag-making Machine is a business with a lot of potential. It’s also a business that can be started with very little capital. The first step in starting this business is to purchase the necessary Paper bag machine.
The paper bag-making machine is the most important piece of equipment for this type of business. It will allow you to make your paper bags at a much faster rate than if you were hand-cutting and folding them.
The paper bag-making machine is typically made out of metal, which means it will last for many years without any need for repairs or maintenance. You’ll have to purchase the raw materials as well, but these are usually sold in bulk packages that are more affordable than purchasing them by the sheet or roll.

Hollow Blocks Making Machine: 

The demand for hollow blocks has increased in the past few years, so it is important to make the manufacturing process more efficient. This machine can produce hollow blocks at a faster rate than if they were being made by hand. It also cuts down on labor costs and increases efficiency.
Hollow blocks are used in the construction industry for several purposes, including block paving and building foundations. The hollow blocks are made by machines which can be classified into two types:
1) Hydraulic Hollow Block Making Machines: These machines use hydraulic pressure to produce hollow blocks. They are more popular in the market because they are cheaper and easier to operate.
2) Pneumatic Hollow Block Making Machines: These machines use compressed air to produce hollow blocks. They are more expensive but they have a longer lifespan than hydraulic machines.

Paving Tile Machine:

A paving tiles machine is a kind of machine that can make paving tiles by using the technology of extrusion. The raw material is plastic granules, and the output product is paving tiles.
The paving tiles machine is mainly composed of an extruder head, hopper, screw conveyor, heating device, cooling device, and other auxiliary components. The extruder head is used to melt the raw material (plastic granules) and feed it into the hopper with a screw conveyor. After being heated by the heating device for a certain time, it will be cooled by the cooling device before going into the die head to form a sheet of plastic film. After being cut into strips by cutting knives by required specifications and shapes, they are heated again to soften them before shaping them into
Paving tiles are the most popular type of flooring in the world, and they are made from concrete, asphalt, or stone. The process of manufacturing paving tiles is usually done by hand. But with the paving tiles machine, the process can be done at a much faster pace.
The machine is designed to help pave tiles manufacturers save time and money by automating some of their processes.
Those who have plans to start Small Scale business using industrial Machinery can Visit Powertek Enterprise. Powertek also provides consultancy services for industrial machinery for starting a small-scale business.

Conclusion

The Mudra scheme Pradhan Mantri MUDRA Yojana (PMMY) has helped more than 8.5 million entrepreneurs, Mudra Loan rate of interest is low and has been successful in providing loans within the stipulated period. Following the above guidelines will help you start your own business within a short period of term.