In India, the majority of businesses belong to the Micro, Small and Medium Enterprises (MSME) category. Most lenders consider these businesses too risky and as a result, these enterprises are usually unable to avail formal business loans.
In order to assist such businesses in availing capital, the Indian government has introduced the Pradhan Mantri Mudra Yojana (PMMY) scheme. The Micro Units Development and Refinance Agency (MUDRA) was set up by the government in order to offer Mudra loans to these MSMEs.
The Mudra loan scheme is intended to help these MSMEs avail capital for meeting their operational expenses. The expenditure can include spending on upgrading machines and equipment, office spaces or even hiring fresh and appropriate talent for the company. The aim behind the PMMY is to help MSMEs flourish through infusion of fresh capital. These enterprises can avail up to Rs. 10 Lakhs under the PMMY.
MSMEs can also avail the MSME Loan, available on Bajaj Markets, which offers you upto Rs. 30 Lakhs for meeting business operation expenses. You can easily repay it over a flexible tenure of 12 to 60 months depending upon your own convenience. Since these loans are of an unsecured nature, it is significantly easier for MSMEs to avail these without any difficulty.
There are several factors that set the Mudra loan scheme apart from the usual business loans offered by most commercial lenders. Read on to learn more about these.
The Bajaj Finserv MSME Loan, available on Bajaj Markets, is also extremely convenient for small businesses to avail for meeting their capital requirements. With an upper limit of Rs. 30 Lakhs for the loans that can be availed, this unsecured term loan can be repaid over a period ranging from 12 to 60 months.
The PMMY, despite the many advantages it offers to MSMEs, does have several drawbacks in terms of credit risks. Read on below to learn more about these.
The Mudra loan, despite being a great initiative by the government for furthering the growth of MSMEs, has several credit risks that might be harmful to the economy in the long run. It is necessary for the government to not just identify these risks but also work towards mitigating them at the earliest.
Small businesses, however, have a range of options available in terms of receiving capital for growing their business. The Bajaj Finserv MSME Loan, available on Bajaj Markets, is available for all business owners between the ages of 26 to 66 years with a business that has been operational for more than 3 years. Any business that meets these criteria can avail an unsecured loan of up to Rs. 30 Lakhs and repay it over a flexible duration of 12 to 60 months.
You can read more about Government Business Loan Schemes in India.