Time to repay Mudra Loan
The Mudra loan which is riding high with its easy and fast loan sanction technique and is quite widespread among the entrepreneurs and micro units, has a long repayment period of 7 years (84 months). For the benefit of the small industries and factories and to provide them easy financial support, the Govt. has launched this scheme which will provide easy loans from private banks, Micro finance institutes and rural banks. The repayment system is also kept easy and affordable.
What is the repayment time of Mudra loan?
The main characteristic of Mudra loan is its easy repayment policy. Any loan taken from any finance institution has its own repayment policy. Under this repayment policy, the amount taken on credit is paid back to the loan – giver. There is always fixed repayment tenure of a loan. Similarly, the Mudra scheme has also repayment tenure of 7 years. This means a maximum number of 84 easy monthly installments can be made to repay the entire sum amount. Earlier, the proposed repayment tenure was 5 years.
Repayment policy of Mudra Loan
The repayment tyechnique that is operational under the Mudra scheme is reducing balance method. This means the principal amount gets reduced gradually every month as the EMIs are being paid one by one. This means the interest charged on the principal amount also gradually decreases. This technique of loan repayment has helped to make the Mudra scheme a successful and popular one among the small business owners and many are taking part in it to get some loan for growth and development of their business.
Why Mudra scheme has gained such acceleration in a short time period?
The Mudra loan scheme is s flagship scheme and a most successful one by the NDA government. It has able to strike the right chords and reach among the masses. Earlier, the micro units, small industries, small factories and entrepreneurs had little or no access to loans on credit from banks and other financial institutes. As they had no repayment guarantee, the banks and financial institutions were hesitant to give loans to them or were given loans at very high rates. But Mudra scheme has solved all problems and is giving credit in form of Mudra Credit cards to those who have a business plan and need monetary help. The repayment can be done within a long time period of 84 months.
|Mudra loan features
|Minimum loan amount
|There is no Minimum Limit specified
|Maximum loan amount
|Public and private bank, Micro finance institution, NBFC, co-operative banks, rural banks, etc.
|Up to 84 months