Mudra Loan

a

Mudra Loan

Micro Units Development and Refinance Agency (MUDRA) loan is funding provided by most of the leading banks to Micro, Small, and Medium Enterprises (MSMEs) nationwide. Under the MUDRA scheme, loans of minimum Rs. 50,000 and maximum of. 10 lakh are provided to start an enterprise or an SME unit. Through the Mudra Loan Yojana, the Government wants to ensure that proper funding is provided to first-time entrepreneurs or existing business owners.

Overdraft Loan

An overdraft means overdrawing money from ones’ current/savings account. In simpler words, an account holder takes out more money that has been deposited in the account. An agreed rate of interest will be charged, if the overdrawn amount is within the limits of a preceding agreement

Pradhan Mantri Mudra Yojana (PMMY)

PMMY is a scheme launched by Government of India to offer funds up to Rs. 10 lakh to non-farm small/micro enterprises and non-corporate companies. Mudra loan scheme is divided into three categories named as Shishu, Kishore & Tarun wherein these loans are offered by Private Sector Banks, Public Sector Banks, Regional Rural Banks (RRBs), etc.

Stand-Up India

Stand-up India scheme was introduced by the Government of India to provide funding to people who come under SC/ST category and women entrepreneurs. The primary purpose of this scheme is to help banks in offering loans between Rs. 10 lakh and Rs. 1 crore to at least one SC/ST borrower and at least one women entrepreneur per bank branch in enabling them to set-up their own enterprise

Term Loan

Currently, many types of term loans are available, such as short-term loans, long-term loans and other small business loans. An entrepreneur can avail of these loans according to his/her requirements and economical position. Mainly the loan tenure for a short term loan is 12 months and for the long-term loan it goes up to 5 years.

 

Term loans are divided into two parts, unsecured business loans and secured business loans. In secured loans, the collateral or security can be a certain property, machinery or a business ground and they will usually possess lower interest rates as compared to an unsecured one. Most of the business loans are unsecured loans and do not require any collateral or security to be submitted to banks or NBFCs.

Working Capital Loan

Working Capital Loans are used to overcome the day-to-day financial requirements of enterprises. The daily expenditure of enterprises includes paying-off salaries, buying raw materials, paying rent, undertaking training, etc. 

Special Schemes for Women Entrepreneurs

Nowadays, banks are giving attractive schemes to women entrepreneurs. These lending schemes are exclusively for women and it gives them relief in terms of interest rates and collateral. Some of the banks also have special departments for women entrepreneurs where they provide them business consulting, training and counseling along with avenues for marketing and showcasing of their products. Women entrepreneurs whose ownership is less than 50% in the company are not eligible to avail the benefits of the women’s special schemes.

Some of the popular loan schemes for women entrepreneurs are as follows:

  • Mahila Udyam Nidhi Scheme
  • Mahila Samridhi Yojana
  • Cent Kalyani from Central Bank of India
  • Stree Shakti Package from State Bank of India
  • Shringaar and Annapurna from Bhartiya Mahila Bank
  • Dena Shakti Scheme from Dena Bank
  • Udyogini Scheme