Benefits and Advantages of Mudra Loan

Advantages of Mudra Loan

MUDRA banks, which is also known as the Micro Units Development and Refinance Banks is among those banks and schemes which are recently launched by the PM of our nation. The main objective of this scheme is to uplift small business and entrepreneurs. It is a totally a new scheme that was launched in 8th April on 2015. There are several exceptions made, which will totally satisfy the customer needs and they will basically reach certain areas where the ordinary banks cannot reach.

There are so many remote places in our nation where the poor people cannot reach the regular and ordinary banks. The main target of the mudra bank is to reach those people and serve them, who are in great needs of a banking service. This bank will provide each and every banking service like saving accounts, loan, credit cards and some other special benefits.

The idea came in the annual budget of India and it took its shape in the month of April. But, only making an idea is not enough as it will also need customers have trust on them and fulfill their needs. So, the committee decided to hit 5 crore users and help those, who are getting deprived of their basic banking needs. Several agents are also hired under this project, who will reach the doors of those needy people.

Benefits of Mudra Yojana

As it is stated earlier that the main motto of the mudra bank is to give support and empower the needy people and small business. This will surely make a difference and hence the Indian economy will also start rising. It is not only that the large business and dealers are the main source of the Indian economy. Even the smallest of them can affect the whole Indian economy.

Banking services are not available in the remote areas. Hence the people those who are in need of money, usually take loans from money lenders at a very high interest. The money lenders also exploit them as those poor people cannot do anything. This surely affects the upliftment of the small business sectors.


  • The utmost important objective is to create a system so that the micro business can get the maximum benefits with minimum risks.
  • Also sets up a good process of the last-mile credit agent scheme, which is entirely for the small business setups.
  • It also makes a credit guarantee to the one who has taken the loan. It means that the person will not only go into debts. The government will also have to bear the responsibility of the loan.
  • There are certain agents hired under the committee who will guide on how to organize and process a business so that there are minimum risks of getting a negative result.
  • All the small business units and sectors will be placed under the surveillance, and a regular evaluation will be made based on their performance.


There are three schemes and based on these schemes, the loan will be provided. Further the loan is sub-divided under three segments i.e. the starters, mid-stage finance and the level growth seekers. Following are the three loans that are provided by the mudra bank.

  • Shishu- This is a starter scheme and the lending amount will be Rs. 50,000.
  • Kishor- This scheme is meant for the mid-level business organizations. The amount will vary in between Rs. 50,000 to 5 lakh.
  • Tarun- This is the next level scheme and it will help those business organizations who are thinking of having a better business setup. The loan provided will range from Rs. 5 lakh to Rs. 10 lakh.

All of these schemes are truly meant for the small business setups and they will surely bring a change in the entire Indian economy.

Other Article

17 thoughts on “Benefits and Advantages of Mudra Loan”

  1. Respecting sir i want to doing business like poultry farm sir plesae sir tell me kya m loan lay sakta hu(mudra bank) say

  2. Hi,
    1>I came from OBC category, i want to start one small library, so please tell me can i get loan from mudra ..
    2> Now i am working in private company and i want to start the business. I need 5 lakh loan for it so is it possible?

  3. Dear Sir/Madam,

    I have recently opened small business which is in the category of Trading. slowly my business is growing and I got a work order of supplying office stationary for an institution regularly. They wont give me the payment at the same time of supplying the items and their requirement may increase every month. That means I need some some working capital to take up that work order . I approached nearby branch of a Nationalized bank which made an advertisement of loan mela including Mudra loan. Having explained about the nature of my business, the Branch Manager told me that he can sanction a loan of Rs. two lakh under the Mudra yojana . He also told me that the loan can be approved from the Branch itself . Actually my need was more than two lakh rupees but considering the speed with which I can get the loan, I agreed to go for the loan which is two lakh rupees as working capital. I have been waiting for the last one month, waiting as the Manager asked me to wait. i did not consult with other banks in the meantime because of his assurance. He didnt even gave me an application form all these days. Day before yesterday, he told me that he can give only Rs.50000 which he knows will not be sufficient for me, and he also discouraging me for not to apply to the Head office saying that they will ask for a lot of unncessary documents and the application will stay there for long. I understood his psychology which prevailed in our country for long. i came back really broken mentally because that was my hope of making a livelihood. I know that bank loan is not a citizen’s right and giving the loan is the discretion of the Manager and The bank. but, Why he kept me waiting….? If I can complain to some authorities….? Even after the introduction of Mudra Yojana, there can’t be any hope of getting easy finanace from any bank in the country…..?

  4. Dear Sir,
    I want to start a firm which will provide surveying solutions. for this i need to purchase surveying equipments through which i can do my job. the cost equipment ranges between 2 to 5 lacs. So can i get loan through mudra scheme. at present i have not registered my firm.
    Please do my needful

  5. Respected Sir/Madam.

    I want to start my own pharmaceutical company in mumbai so can i apply for mudra loan around 15 Lakhs. and please suggest me the which type of documents you required and what will the rate of intraste and how many days it will take for the disburse.

    Thank Yoy
    Alok Singh

  6. Respected sir /madam
    I am ayurvedic doctor & practicing in satara (M.S). I want to start the ayurvedic pharmaceutical company. I am from open category. I had RCC building .I require loan to renovate it as per Food & drugs rules for pharmacy & to purchase machines as per requirements. Also I already developed a marketing link for production. How can I get loan from mudra or PM rojgar yojana? Please reply me.

  7. Hello sir/madam,
    I running my mosquito nets mfg business firm since 1980, I took loan already interest rate @ 11.5% in CC a/c of nationalize bank.

    I’m belong from open category (Jain) so which are extra formalities for me?

    Can I get loan to well set for the same firm?

    If yes, then how much interest rate, terms and conditions for tarun mudra yojna?

    If no, so what is another way to use this facility?

    Please send me link for whole information.

    -Malegaon (Maharashtra)

  8. dear sir
    Please let me know thew rate of interest &time period for Kishore & Tarun Schemes, And what are the necessary documents required. is I T Rtn Compulsory.waiting for your reply

  9. Hello,
    We are running an online store and we have some brilliant ideas in mind for expansion of this business but we got some financial barrier that’s why we are looking for seed investment in our firm but i have heard about PMMY from news and now willing to take advantage of it. Could you please tell me what interest rate and how much loan i can get and whom should i consult regarding the same.
    Please reply

    Thank You

Comments are closed.