TomorrowMakers

The government has launched various endeavours to empower females and help them fund their businesses. One such endeavour is the MUDRA loan, which gives women access to funds at low interest rates.

Loan Schemes for Women in India

The Pradhan Mantri Mudra Yojana (PMMY) is a loan scheme for enterprising borrowers to fund their businesses. The loans are available for both individuals and MSMEs (Micro, Small, and Medium Enterprises) and are offered in three different forms. Women borrowers can apply for the loan and start their own business or fund an existing business. Many financial institutions offer a loan that gives collateral-free funding to women and other borrowers with amounts going up to Rs 10 lakh. Let’s look at the details of the scheme.

  • The Pradhan Mantri Mudra Yojana (PMMY) was launched to give cost-effective loans to women and other borrowers for their businesses.

  • The Micro Units Development and Refinance Agency (MUDRA) is the loan scheme under the PMMY, which offers loans up to Rs 10 lakh.

  • The loans are collateral-free and offered in three forms – Shishu, Kishor, and Tarun.

  • Women can visit the nearest financial institution that offers the Mudra loan or apply online with the required documents like KYC, business proof, etc. 

 

Features of the Mudra Loan Scheme

Some of the salient features of the Mudra loan scheme offered by the government are as follows –

  • The scheme was launched in 2015 and offers loans to individuals and businesses in the trading, manufacturing, or service sectors.

  • The repayment tenure ranges from 12 months to 60 months.

  • No collateral security is needed.

  • It is a multipurpose loan.

  • Women can enjoy 25bps lower interest rates on the loan. Moreover, the Shishu loan offers 2% lower interest rates for women.

Also Read – Know more about interest rates on SME loans

Types of Mudra Loans 

As mentioned, three types of loans are offered under the Mudra scheme. These are as follows –

Types of Mudra Loans

How to Apply for the Loan? 

You can apply online or offline by completing the application form and submitting the relevant documents. The documents include –

  • Application form with passport-sized photographs of the applicant

  • KYC documents like passport, Aadhaar Card, PAN Card, voter’s ID Card, etc.

  • Last 6 months’ bank statement

  • Business proof

  • Any other document required by the lender

Click here to read the latest articles on Spending 

 

The Bottom Line

The Mudra loan is quite popular as more than Rs 1.62 billion has been disbursed. The government expects that the subsidised interest rates will attract more women borrowers. So, if you need funds, apply for the Mudra loan and fund your entrepreneurship dreams.

Also Read – 10 bank loan schemes that women can explore

The Pradhan Mantri Mudra Yojana (PMMY) is a loan scheme for enterprising borrowers to fund their businesses. The loans are available for both individuals and MSMEs (Micro, Small, and Medium Enterprises) and are offered in three different forms. Women borrowers can apply for the loan and start their own business or fund an existing business. Many financial institutions offer a loan that gives collateral-free funding to women and other borrowers with amounts going up to Rs 10 lakh. Let’s look at the details of the scheme.

  • The Pradhan Mantri Mudra Yojana (PMMY) was launched to give cost-effective loans to women and other borrowers for their businesses.

  • The Micro Units Development and Refinance Agency (MUDRA) is the loan scheme under the PMMY, which offers loans up to Rs 10 lakh.

  • The loans are collateral-free and offered in three forms – Shishu, Kishor, and Tarun.

  • Women can visit the nearest financial institution that offers the Mudra loan or apply online with the required documents like KYC, business proof, etc. 

 

Features of the Mudra Loan Scheme

Some of the salient features of the Mudra loan scheme offered by the government are as follows –

  • The scheme was launched in 2015 and offers loans to individuals and businesses in the trading, manufacturing, or service sectors.

  • The repayment tenure ranges from 12 months to 60 months.

  • No collateral security is needed.

  • It is a multipurpose loan.

  • Women can enjoy 25bps lower interest rates on the loan. Moreover, the Shishu loan offers 2% lower interest rates for women.

Also Read – Know more about interest rates on SME loans

Types of Mudra Loans 

As mentioned, three types of loans are offered under the Mudra scheme. These are as follows –

Types of Mudra Loans

How to Apply for the Loan? 

You can apply online or offline by completing the application form and submitting the relevant documents. The documents include –

  • Application form with passport-sized photographs of the applicant

  • KYC documents like passport, Aadhaar Card, PAN Card, voter’s ID Card, etc.

  • Last 6 months’ bank statement

  • Business proof

  • Any other document required by the lender

Click here to read the latest articles on Spending 

 

The Bottom Line

The Mudra loan is quite popular as more than Rs 1.62 billion has been disbursed. The government expects that the subsidised interest rates will attract more women borrowers. So, if you need funds, apply for the Mudra loan and fund your entrepreneurship dreams.

Also Read – 10 bank loan schemes that women can explore