Mudra Loan: One Of The Great Financial Opportunities for Agriculture Industry
Mudra Loan: One Of The Great Financial Opportunities for the Agriculture Industry

The agriculture sector needs access to finance for growth. And the transition from subsistence to commercial agricultural production needs an instant business fund.

MUDRA (Micro-Units Development and Refinance Agency) loan is one such basic measure that the Indian Government has initiated for promoting MSMEs nationwide. Also known as Pradhan Mantri Mudra Yojana or Mudra Bank Scheme, this Government business loan has acquired more attention.

Under this scheme, from INR 50,000 to almost INR 10 lakhs are offered to small business entities and start-up companies. The credit item provided by MUDRA, popularly recognized as Mudra loan, helps small businesses or micro-units to develop and maximize their businesses or handle regular business operations through simple fund schemes.

Like other financial lenders, Indian Bank is a provider of Mudra loan to people nationwide. According to the Mudra loan subsidy offered by the Government of India, the accurate Mudra loan rate of interest could be lower than the present and also relies on the profile of the applicant.

Also Read: Mudra Loan – Everything You Must Know About

Mudra Loan Eligibility

Small and medium-scale business owners can avail of this loan.
When an established entity that requires capital for the business extension is eligible for Tarun loan.
A business that requires capital to build itself up is eligible for Kishor loan.
Mudra loans provide financial support to non-farm enterprises involved in manufacturing, trading, and services with credit requirements below Rs. 10 lakhs. Depending on the growth stage and funding requirements of the micro unit or entrepreneur, beneficiaries can access the following categories of loans:
Shishu – Loans up to Rs. 50,000/-
Kishor – Loans ranging from Rs. 50,000 to Rs. 5 lakh
Tarun – Loans ranging from Rs. 5 lakh to Rs. 10 lakh

Mudra loan Indian Bank has many activities that can be covered under the scheme. MSMEs belong to the agriculture industry need to fulfill the Mudra loan eligibility criteria to apply for loans. Such activities include launching, establishment, or expansion of an agriculture business like a poultry farm, an apiary, a livestock farm, and a dairy farm.

Also Read: Why Choose NBFCs Over Banks For A Business Loan In India

Mudra Loan Rate of Interest

Indian bank Mudra loan rate of interest is provided at 14.20% onwards since they provide a standard rate of interest for all of their loans or lending items. However, Mudra loan subsidy provided by the Government of India may reduce it further.

Documents Required for Mudra loan

The application procedure for a Mudra loan is the same as any other business lending. The general documents required for acquiring a Mudra loan incorporate:

· Identify proof such as Passport, Driving License, Voter ID, and Aadhaar Card.

·Address proof such as PAN card, Aadhaar card, Electricity Bills, Telephone Bills, Tax bills, and Water bills.

· Statement of the Bank accounts for the last six months.

· Two passport-sized photos.

·  ITR (Income Tax Return) Statement.

· Unaudited balance sheets.

· Documents of all business owners or partners.

· If an applicant belongs to SC, ST or OBC, then related documents should be presented.

· All papers which prove the validity of the address and name of the business entity.

MSME loan for Wholesalers

Synergies

National Rural Livelihoods Mission

The National Rural Livelihoods Mission (NRLM) is established with the primary goal of alleviating poverty by facilitating impoverished households’ access to viable self-employment and skilled wage employment opportunities.

This endeavor aims to bring about substantial enhancements in their livelihoods on a sustainable basis, achieved through the establishment of robust grassroots institutions for the economically disadvantaged. NRLM employs a demand-driven strategy, emphasizing continuous capacity building, skill development, and forging connections with livelihood prospects, including those emerging in the organized sector.

Deendayal Antodaya Yojana

Similarly, the Deendayal Antodaya Yojana (DAY) National Urban Livelihood Mission is another initiative dedicated to mitigating urban poverty by fostering the creation of micro-enterprises in both individual and group settings.

MUDRA, as an initiative dedicated to promoting micro-enterprises, is committed to synergizing efforts with NRLM, NULM, and MUDRA interventions. This collaborative approach aims to support micro-enterprises and establish sustainable livelihood opportunities for the underprivileged.

Also Read: Everything You Wanted To Know About PMEGP Loan

Conclusion

Access to funds is necessitous for every developed agriculture segment and small entrepreneurs and drawing farmers in growing countries into the financial system is far from achieved. Now there are many financial institutions like Indifi which offer an online business loan for the agriculture sector.

Moreover, the government plays a proactive role by promoting laws and regulations by raising awareness and specialization in agricultural finance in the government and the financial segments is an essential driver for this development. Nevertheless, funding is not a charitable action but is a profit-driven activity.

Handling the challenges and understanding the financial opportunities of the agriculture industry is the key to every successful law or policy. Hence, to appeal for finance and investment in this industry, it is vital to strengthen both the financial and agriculture sectors.

The Government of India has put an effort by taking a holistic approach of offering an instant loan on PAN card and Aadhaar card which is certainly a win-win agricultural financing system.

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FAQs

What are the types of Mudra Loans available?

There are three types of Mudra Loans: Shishu, Kishor, and Tarun. Shishu is for micro-enterprises in their early stages, Kishor for slightly larger businesses, and Tarun for more established enterprises looking to expand.

What is the repayment period for Mudra Loans?

The repayment period for Mudra Loans varies depending on the loan amount, the type of business, and the policies of the lending institution. Typically, the repayment period can range from one year to five years.

Can existing borrowers avail of additional Mudra Loans?

Yes, existing borrowers with a good repayment track record may be eligible for additional Mudra Loans to support the growth and expansion of their businesses, subject to the lending institution’s policies and assessment of creditworthiness.

By indifi

5 thoughts on “Mudra Loan: Great Financial Opportunities for Agriculture Industry”
    1. Sir, agar app apne business ko badana chahte h toh aapko hum business loan de sakte h. Uske lie hamari website pe jaiye indifi dot com or application form bhairie, hamari taraf se apko call ayega, jab aap woh form bharoge.

    1. Sir, agar app apne business ko badana chahte h toh aapko hum business loan de sakte h. Uske lie hamari website pe jaiye indifi dot com or application form bhairie, hamari taraf se apko call ayega, jab aap woh form bharoge.

    2. Sir, hum business loan de sakte h. Uske lie hamari website pe jaiye https://www.indifi.com/ or application form bhairie, hamari taraf se apko call ayega, jab aap woh form bharoge.

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