By

CA Amit Bansal
MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial
institution set up by Government of India for development and refinancing of micro units
enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union
Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate
small business sector through various Last Mile Financial Institutions like Banks, NBFCs and
MFIs.

Collateral Free Loans

No Guarantor Required

Easy to Apply
This category of Mudra Loan is best suited for micro or
small business owners. Under this scheme, one can apply
for up to ₹ 50,000 loans. Shishu loans are for business
owners who need small capital to start their business.
Applicants need to present their business idea to get their
loan application approved.
This category is meant for the business owners who have
already started their business and want to expand it as a
viable enterprise. The applicants can apply for a loan
amount ranging from ₹ 50,000 to ₹ 5 Lakh. To apply for
the loan, borrowers must fill in the application form and
furnish the documents to showcase the current status of
their organisation.
All small business owners who need to expand their
business can apply for a loan under this scheme.
Borrowers can apply for up to ₹ 10 Lakh loan.
Mudra Loan scheme helps MSMEs with the following
purposes:
•Starting a new business
•Expanding the business
•Purchase of plant and machinery
•To get working capital for business
•Purchasing equipment or commercial vehicles
•Hiring or training staff
You can apply in:
•Any nearest bank branch through visiting the branch

•Online mode: psbloanin59minutes.com

LOAN AMOUNT UPTO RS. 200 LACS

COLLATERAL FREE LOANS

GUARANTEE COVERAGE RANGES FROM 85% (MICRO ENTERPRISE UPTO Rs 5 LACS) to 75%
(OTHERS) THROUGH CREDIT GUARANTEE FUND TRUST.

EASY TO APPLY

MAXIMUM INTEREST CAPPING 14% FOR SCH.BANKS AND NBFC 18%

You can apply in:
•Any nearest bank branch through visiting the branch

•NBFCS

•SIDBI