Can I get Mudra loan for new business?
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Can I get Mudra loan for new business?
Mudra Yojana is a loan scheme initiated by the Government of India to offer loan amount up to Rs. 10 lakh for individuals and MSMEs to start their new business or for existing businesses, without submitting any collateral or security.
What is required for Mudra loan?
Eligibility Criteria for Mudra Loan The minimum age of the applicant must be 18 years and the maximum Mudra Loan age limit is set to 65 years. Loans can be availed by non-farm income-generating businesses in trading, manufacturing and services. The requirement of credit must be ₹ 10 Lakh or lower.
Can I get Mudra loan without income proof?
Under the Shishu category, people needing funds to start a business can avail a loan. Since they are start ups, lenders might not expect people to submit income proofs. Filled application form of Pradhan Mantri Mudra Yojana and business instalment loan form.
What is the interest rate of Mudra loan?
Interest rates on MUDRA loans start at the rate of 7.30\% p.a. and the loan repayment tenure ranges between 1 year and 7 years….MUDRA Loan Details.
| Interest Rate | 7.30\% p.a. onwards |
|---|---|
| Loan Amount | Up to Rs.10 lakh |
| Loan Tenure | Up to 7 years |
| Processing Fee | Subject to the lender |
Who is applicable for Mudra loan?
Any Indian Citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is up to 10 lakh can approach either a Bank, MFI or NBFC for availing of MUDRA loans under PMMY.
Which banks are eligible for Mudra loan?
Oriental Bank of Commerce.
What happens if Mudra loan is not paid?
In case one fails to pay the Mudra loan, then the loan is considered as the non-performing asset. In addition, the lender has rights to take legal action against you if you fail to pay the loan. The lender may also seize the assets of the borrower and sell them off for loan repayment.
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