Mudra Loan for MSMEs

When we talk about India’s industrial growth, the contribution of small and medium enterprises has been phenomenal. While contributing to almost 40% of the country’s GDP, the MSME sector is instrumental in creating multifarious sources of income and employment. But when it comes to financial standing, things are a little complicated for MSMEs. While most big companies and industries are able to manage secured credit, things haven’t been very easy for the small scale ones. Shortage of credit has been a major block for most budding entrepreneurs. To help combat this financial crunch, the Micro Units Development & Refinance Agency Ltd scheme was launched by the Government of India.

Better known as the MSME Mudra loan, this scheme was announced by the then Finance Minister Shri Arun Jaitley during the annual Union Budget for the financial year 2015-16. The scheme was then finally introduced on April 8, 2015, by Prime Minister Shri Narendra Modi.

Applying for the loan scheme has been purposely simplified so that aspiring applicants can easily receive the loan benefits.

• Step 1: Identify the loan category (Shishu, Kishore, Tarun) that you fall into:

• Step 2: Visit https://www.mudra.org.in/ and download the Application Form. Fill it out and submit it with your preferred bank/ financial institute with your personal and KYC details and the required documents.
  

• Step 3: Once you complete the formalities, the bank will verify the paperwork. The loan amount will then be transferred into your bank account.

In case you want to apply offline, you can physically visit your preferred bank. Fill in the mudra loan application form and attach the needed documents. The bank will then get in touch with you to go ahead with the proceedings.

Budding enterprises and entrepreneurs often find it difficult to arrange funds for their dream startups and businesses. Mudra loans have empowered MSMEs not just with financial support but also with financial literacy. With loan options from Rs. 50,000 up to Rs. 10 Lakhs, Mudra loans aim to offer financial aid to even the most remote places. Hailed as a great scheme for micro, small and medium enterprises, the response to this scheme has been remarkable.