In May this year, the government of India announced the 20 lakh crore Atma Nirbhar Bharat Abhiyan, an attempt to make the country self-reliant and provide financial support to the economically poor who have been hit hardest due to the nationwide lockdown which is now slowly opening. Some of the initiatives included providing free foodgrains to migrant workers, credit facility at discounted rates to farmers and street vendors to name a few. In line with these measures, Finance Minister Nirmala Sitharaman also announced a relief package of Rs. 1500 crore which allows an interest subsidy for MUDRA Shishu loan payees for 12 months.
The year 2019-20 saw a record 58.36 million MUDRA loans amounting to Rs 3.16 trillion disbursed to those in the non-corporate sector. However, after the Prime Minister announced the nationwide lockdown on March 24 to curb the spread of the pandemic, most small business owners were forced to shut shop for roughly two months. This also impacted their ability to pay back the loans they had already taken before March 2020. The government had earlier announced a three month moratorium on loans taken by borrowers. However, after it was felt that it was not sufficient, the Finance Minister intervened yet again with an additional measure.
In April 2015, Prime Minister Narendra Modi announced the Pradhan Mantri Mudra Yojana also known as PMMY, a scheme to provide economic support to small entrepreneurs by giving them easy access to credit. As a part of PMMY, a non-banking financial institution, the Micro Units Development and Refinance agency or MUDRA was formed. It is a wholly owned subsidiary of the Small Industries Development Bank of India(SIDBI) and refinances loans to the tune of Rs. 10 Lakhs given by banks to small borrowers.
Loans fall in three distinct categories- MUDRA Shishu loan extends credit to a maximum of Rs. 50,000, Kishor loans offer Rs. 50,000 to Rs. 5 Lakhs, while Tarun loans can enable you to get credit between Rs. 5 lakhs to Rs. 10 lakhs. A small entrepreneur looking to start his own business or someone in the initial stages can avail a Shishu loan, while Kishore loan and Tarun loan can help those with larger capital requirements looking to expand their business, upgrade machinery or even start a new venture. No collateral needs to be pledged for these loans and they are only provided to small businesses which fall under the purview of non-corporates such as small manufacturing units, fruits and vegetable vendors, repair shops and so on.
More than 30 million MUDRA Shishu loan holders are estimated to benefit from the financial aid on loan interest announced by the Finance Minister. This is assuming that all Shishu loan holders have utilised the maximum limit of Rs. 50,000 and can benefit from the incentive as they repay the credit taken earlier. However, if you are a small business owner looking to apply for a MUDRA loan under PMMY, you can easily do so on Bajaj Markets. All you need to do is enter your personal and professional details. Existing business owners need to submit financial proof as well. A few important KYC documents will need to be uploaded and you can receive the loan amount in your bank account after it is sanctioned successfully.
Alternatively, if you are in need of a loan amount higher than Rs. 10 Lakhs urgently, a good option to consider is the Business loan available on Bajaj Markets. Not only can you avail high credit up to a maximum of Rs. 30 Lakhs to take care of your working capital requirements, you also have the option to repay flexibly as per your financial comfort over tenures ranging from 12 months to 5 years.
So whether you run a small, micro or medium enterprise or are looking to build your own start-up, you can get a personalised pre-approved Bajaj Finserv Business loan instantly only on Bajaj Markets. Know the loan EMI even before your loan is approved with the business loan EMI calculator available online on Bajaj Markets. To apply, simply log on, enter your personal and professional details. Now state the loan amount and the duration of repayment that is comfortable to you.
Get your loan approved within 3 minutes post verification and submission of documents and it can even be transferred to your bank account within 24 hours of its approval. If this isn’t enough, you are also provided access to personalised Financial Health Check Report (FHCR) and insurance plans for you, so that you and your company have an edge over your competitors.