Pradhan Mantri MUDRA Scheme: Things You Must Know - Loan Trivia


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Friday 16 November 2018

Pradhan Mantri MUDRA Scheme: Things You Must Know

Startup culture is growing rapidly in India with startups coming up all over the country. Owing to this, India aspires to become a superpower by 2020. Though achieving this goal isn’t really difficult as long as the roadblocks are taken care of. Honestly, India can become a global manufacturing hub if they find a solution to their ‘failing startup’ problem. As per some of the biggest names in the news industry, 9 out of 10 startups fail to cross the 5-year milestone. Now, a lot of reason can be attributed to this problem, yet the biggest one is lack of proper funding solutions.

As per the reports by the Boston Consulting Group (BCG), India will be the third largest consumer market in the world by 2025. This simply means the rising MSMEs and SMEs have a tremendous opportunity here, to tap in and become big. However, that would require proper financial support from the formal banking sector, which was lacking. Thankfully, the current government was able to realize the growth potential, identify the possible problems and came up with a fitting solution - the Pradhan Mantri MUDRA loan scheme.

The Micro Units Development and Refinance Agency (MUDRA) has been set up as a subsidiary of the Small Industries Development Bank of India (SIDBI). The sole aim of this loan is to lend collateral-free financial support to eligible beneficiaries, strictly for the purpose of meeting their business needs.

How to apply for a loan under MUDRA funding scheme?  

The loan can be availed from the agencies registered as a partner with MUDRA. Therefore, you can check the list and approach the nearest bank or NBFC for the loan. However, make sure you have these things at the time of applying:-

A proper business plan needs to be submitted to the agency at the time of application.
A loan application which must be submitted under the selected category: Shishu, Kishore or Tarun

In case you fail to qualify the terms and conditions of MUDRA scheme, you can check out the varied business funding schemes offered by NBFCs and banks.


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