You not only need to fulfil the current needs of the business but also required to be equipped with adequate funds, as well as a vision for sustenance and growth of the same. The availability of funds is certainly one of the key requirements of each business owner. If you, too, have a business that needs some financial assistance, it would be useful for you to learn about government aid available for various business needs. This will help you Apply for Business Loan, which is the best suitable match for your needs.
You can save on the interest rate and avail of more flexibility in repayment. MUDRA Loan-MUDRA stands for Micro Units Development & Refinance Agency Ltd. You do not require any collateral to avail of Mudra Loan. The MUDRA Loan was launched to offer collateral-free financial aid to the 577 crores + micro, small and medium businesses of India.
Depending on the stage of growth of the business, the entities are classified into 3 categories, namely Shishu, Kishor, and Tarun. MUDRA Loans under the Shishu category are available for businesses in their budding stage. With a repayment period of up to 4 years, this loan is offered at an interest rate of 12% per annum. MUDRA Loans under the Kishor category are available for established businesses that require working capital.
MUDRA Loans under the Tarun category are available for long-standing businesses that need financial aid to expand or diversify their operations. MUDRA Loans do not attract any processing fee, thereby ensuring the lower cost of the loan.
Should be able to furnish proof of category
Depending on the lender’s credit policy and the loan type you apply for, a Business Loan may or may not require you to pledge collateral.
15 lakh. A self-employed professional must have sufficient proof of degree or diploma in the choice of profession, complete with a minimum annual income as dictated by the lender. As you now know, all about MUDRA Loans, as well as regular Business loans available with your bank, you can make an informed decision with confidence. The MUDRA Loan can help you tread difficult waters, especially when you’re looking for a smaller loan amount at a lower cost.