Securing funding for start-up can be surprisingly difficult. With stiff competition for limited sources of financing, many entrepreneurs are left empty-handed, even if their metrics prove they have great potential. But there is a way out and it’s MUDRA Scheme. Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them. It enables a small borrower to borrow from all Public Sector Banks such as PSU Banks, Regional Rural Banks, and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-Banking Finance Companies (NBFC) for loans upto Rs. 10 lakhs for non-farm income-generating activities. Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than Rs 10 lakh can approach either a Bank, MFI, or NBFC for availing of Micro-Units Development & Refinance Agency Ltd. (MUDRA) loans under Pradhan Mantri Mudra Yojana (PMMY).
Borrowers, who wish to avail assistance under Pradhan Mantri MUDRA Yojana (PMMY), can approach the local branch of any of the financial institutions in their region – PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-Banking Finance Companies (NBFC). Sanction of assistance shall be as per the eligibility norms of the respective lending institution.
And do you know the best thing about MUDRA:
- No processing fee
- No collateral
- Repayment period of loan is extended up to 5 years
- But remember that applicant should not be defaulter of any Bank / Financial Institution
So what are you waiting for? Go and grab the opportunity.