The Micro Units Development and Refinance Agency (MUDRA) loan is a government initiative aimed at supporting non-corporate, non-farm sector income-generating microenterprises. The MUDRA loan interest rate starts from 7.30% p.a., making it an attractive option for small businesses seeking financial support. This article provides a comprehensive comparison of MUDRA loan interest rates across various banks.
MUDRA Loan Interest Rate Overview
MUDRA loans, designed to empower micro and small enterprises, offer varied interest rates based on applicants’ profiles and business needs. These rates depend on lending institutions, with some tying them to Marginal Cost of Funds based Lending Rate (MCLR), while others rely on internal guidelines.
Interest rates for MUDRA loans can go beyond 7.30% p.a. The loan amount may extend up to ₹10 lakhs, and borrowers can choose a flexible loan tenure of up to 7 years, subject to lender-specific terms. These details illustrate the dynamic nature of MUDRA loan interest rates,
providing applicants with options that cater to their unique financial circumstances and aspirations.
MUDRA Loan Calculator
The MUDRA Loan Calculator is a tool for aspiring entrepreneurs and small business owners. It enables you to estimate potential loan amounts, interest rates, and repayment schedules, aiding in informed financial decisions. By simply inputting essential details such as your business requirements, loan tenure, and expected interest rates, this calculator provides clarity on your MUDRA loan’s financial aspects. Whether you’re starting a new venture, expanding an existing business, or need working capital, the MUDRA Loan Calculator empowers you to plan your financial future with precision and confidence.
MUDRA Loan Interest Rate Calculator
The MUDRA loan interest rate calculator is a specific tool designed to help you calculate the interest you would need to pay on your MUDRA loan. Using the MUDRA loan interest rate calculator, you can compare the cost of loans from different banks and make an informed decision.
Pradhan Mantri Mudra Yojana Interest Rate
Pradhan Mantri Mudra Yojana (PMMY) offers MUDRA loans with different interest rates. The interest rate, known as the PMMY interest rate, depends on your chosen scheme (Shishu, Kishor, or Tarun) and the lending institution.
| Name of Scheme | Loan Amount |
| Shishu | Up to Rs.50,000 |
| Kishor | Rs.50,000 to Rs.5 lakh |
| Tarun | Rs.5 lakh to Rs.10 lakh |
Credit Facilities Offered Under Mudra Yojana
Under the umbrella of Mudra Yojana, various credit facilities are provided to cater to specific business requirements. These include:
- Micro Business Support
This model aims to broaden the scope of benefits and beneficiaries by encouraging widespread participation. Businesses engaged in food production, textiles, land transportation, and community services can leverage this model to kickstart their small enterprises and gain financial independence.
- Women Entrepreneurship Support
This model is tailored to empower women to establish their businesses. The scheme provides financial aid and concessional interest rates for women entrepreneurs.
3. Refinancing Scheme
This scheme offers refinancing to businesses operating in the trading, manufacturing, and services sectors. Under the MUDRA refinancing scheme, only scheduled commercial banks can provide loans to ultimate borrowers at their base rate.
4. Micro Credit Scheme
This model provides financial backing to Micro Finance Institutions (MFIs), individuals, groups, and micro-business entities.
5. Mudra Card
This is a type of debit card issued for multiple withdrawals and credits. RuPay facilitates easy credit through its debit card, issued on the RuPay platform. Entrepreneurs can use the card to secure working capital for their businesses.
6. Credit Guarantee Fund
The Credit Guarantee Fund for Micro Units (CGFMU) is a fund managed by the National Credit Guarantee Trustee Company Ltd. (NCGTC), promoted by the Government of India. Typically, under this fund, the Micro Loan Guarantee Fund covers eligible micro-loans sanctioned under Mudra Yojana. This fund covers risks related to collateral or security for banks and NBFCs.
7. Equipment Finance
This model is specifically designed to aid the expansion of micro businesses. Qualified businesses can avail of quality equipment up to ₹10 Lakhs under this scheme
How to Avail MUDRA Loan at Low-Interest Rates
- Compare loan rates offered by various banks and Non-Banking Financial Companies (NBFCs) to secure a MUDRA loan at a low-interest rate.
- Understand that the Pradhan Mantri MUDRA loan interest rate depends on your business’s nature and type. Lower-risk businesses are more likely to secure loans at lower interest rates.
- Ensure your creditworthiness and repayment capacity are strong, as these factors play a significant role in securing a loan.
- Aim for a higher annual turnover and volume, leading to lower interest rates.
- Maintain a clean credit history with no previous loan defaults to gain an advantage when applying for a MUDRA loan.
Conclusion:
In conclusion, the wise use of tools like the MUDRA loan EMI calculator and the MUDRA loan interest rate calculator, coupled with a thorough comparison of rates across banks, can guide you towards a MUDRA loan decision that aligns optimally with your business objectives.
What are the types of MUDRA Loans?
Is there any subsidy on MUDRA Loans?
What is the repayment tenure for MUDRA Loans?
Who is eligible for MUDRA Loans?
