The Pradhan Mantri Mudra Yojana (PMMY) was a 2015 scheme instituted to aid the growth of MSMEs within the non corporate and non farming sectors. It does so by providing loans of upto Rs. 10 Lakhs through three different loans under its banner.
MUDRA(The Micro Units Development and Refinance Agency Ltd.) was set up by the Union Government to supervise this venture and was tasked with directing Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Non Banking Financial Companies (NBFCs) as well as MFIs to issue such loans to MSMEs . These MSME loans can be divided into three categories based upon the loan amounts involved:
This article will look into the features, eligibility requirements and procedures associated with Mudra Tarun loans.
Tarun Mudra loans are at the higher end of the range of loan amounts under this scheme. It provides sums of Rs. 5 lakhs to Rs. 10 lakhs with term periods ranging between 3-5 years, similar to other categories of Mudra Loans. These amounts may either be suited towards established small enterprises that are looking to expand and scale upwards, or newer enterprises that require a high amount of start up or working capital. As in the case of the other categories of loans under this scheme, they can be used for a variety of purposes such as expansion, purchasing equipment, renovation or as working capital among others.
The processing fees in this case are o.5% of the loan amount and Interest rates vary depending upon the borrower’s credit history, repayment capacity or tenure as well as the financial institution they solicit the loan from. However, they generally do not exceed 12% per annum. This is because loans under the scheme are meant to allow MSMEs to make use of the capital they gain from these loans without the burden of high interest rates as they might face when soliciting regular business loans from financial institutions.
The procedure to be followed when applying for Tarun Mudra loans is as follows:
The easy application process, low interest rates, high loan amounts, reasonable interest rates and flexible tenures allow the owners of small enterprises and budding entrepreneurs to utilize Tarun loans in growing their businesses. The availability of Mudra Loan cards allows borrowers to access funds without having to make repeated visits to financial institutions.
The Tarun Mudra Loans offered on the Finserv MARKETS portal possess all these features and have an easy online application process that may provide you with the funds you need in order to take your business to the next level.
For capital requirements that are larger than Rs 10 lakhs, the Bajaj Finserv Business Loans available on the Finserv MARKETS portal can help you avail amounts up to Rs. 30 lakhs. These loans include special Business loans for Women and MSMEs as well and provide flexible EMI payments and zero-collateral offerings. The Finserv MARKETS portal provides an entirely online application process with instant approval in as little as 3 minutes.
The procedure to be followed when applying for Tarun MUDRA loans is as follows:
The MUDRA scheme loans are categorized based on the growth rate and needs of an enterprise. Kishore Loans are offered to small enterprises that are in their growth stage and require an adequate sized loan. The loan amount offered by the MUDRA Kishore loan can be anywhere ranging from ₹50,000 to ₹5 Lakhs.
Anyone who runs a small business enterprise is eligible to apply for a MUDRA loan. These loans are given under three different categories.
Following are some of the major banks: