As per reports, the total number of MSMEs in India during the financial year 2020 is above 60 million. A major part of this sector comprises micro and small-scale enterprises. Aside from making significant contributions to India’s GDP, they are instrumental in generating employment in this country. Hence, these units serve as the backbone of the economy.
However, one of the most familiar issues they face is the lack of capital, which is vital for the growth of an enterprise. Moreover, the day-to-day operations of a business are often disrupted owing to the scarcity of funds. To curb this issue, MUDRA loan was introduced by the Indian government in April 2015 under the Pradhan Mantri MUDRA Yojana.
The Indian government launched PMMY to achieve the following objectives:
Given below is a tabular representation of the different types of MUDRA loans that one can avail:
Category |
Maximum Loan Limit |
Purpose-Built For |
Shishu MUDRA loan |
Rs. 50,0000 |
New enterprises and start-ups |
Kishor MUDRA Loan |
Rs. 5,00,000 |
Purchase of equipment, machinery and expansion of operations |
Tarun MUDRA Loan |
Rs. 10,00,000 |
Enterprises that are already well-established. |
Applicants are required to furnish the following documents to avail a MUDRA loan:
As we can see from above, the application procedure of a MUDRA loan involves a tedious documentation process. Moreover, business owners often fail to fulfil the stringent eligibility criteria of such form of credit. Owing to these reasons, a gold loan has now become a preferred option for most businesspersons.
This form of financial assistance can be availed without submitting any proof of income. Moreover, you can utilise the credit availed from the lender to finance a wide range of expenses such as restocking inventory, hiring skilled labour, supplementing cash flow, etc. Moreover, with Rupeek, it is now possible to avail such form of credit from the comfort of your home.
In the past few years, our services have garnered enormous popularity among business owners in India. With our hassle-free application process and lowest interest rates, financing your various business expenses has never been easier. Here are the benefits of availing a gold loan with us:
The table given below represents the differences between our gold loan and PM MUDRA loan:
Basis of Comparison |
MUDRA Loan |
Rupeek Gold Loan |
End-use restrictions |
A borrower can only use the loan for specified purposes. |
There are no end-use restrictions on the loan amount availed from us. |
Maximum limit |
The maximum amount that can be availed is Rs. 10,00,000. |
The maximum loan amount that can be sanctioned is Rs. 1.5 crores. |
Quick disbursal |
Disbursals may take up to 10 days. The time that is taken for loan disbursal primarily depends upon the financial institution. |
After completing the necessary formalities such as the gold valuation process and KYC, the loan amount is transferred immediately into your account. |
Income proof documents |
As noted above, applicants must submit income proof documents such as ITRs, Sales Tax Returns and bank account statements. |
It involves minimal documentation. Applicants only need to submit their KYC documents and address proof. |
Repayment tenure |
The repayment tenure of a MUDRA loan can be up to 7 years. |
Our gold loan repayment tenure is of 6 months and can be extended up to 12 months. |
Business Plan |
Applicants are required to submit a self-written business plan. |
You can avail a gold loan without submitting a business plan. |
Whether you are a budding entrepreneur or a retail business owner trying to expand your existing business, we are here to cater to your financial needs. Now that you’re aware of the various benefits of a gold loan, your search for the ‘best MUDRA loan provider near me’ ends here.
Apply for a gold loan via our app or web platform and our authorised executive will be there at your location as per the scheduled time. You can also use our gold loan calculator to ascertain the quantity of gold you need to pledge to avail the loan amount you require. In case of any query, feel free to contact us as per your convenience.
The interest rate of a MUDRA loan differs from one financial institution to another; there is no fixed rate.
No, our lending partners do not accept all types of gold items as collateral. They accept only gold ornaments. Hence, you cannot pledge items like gold coins, gold bars. Also, please note that the purity of the gold ornaments should be between 18 and 22 karats.
We’ve collaborated with some of the leading institutions to ensure the safety of your gold items. Once the gold valuation and KYC process are complete, your gold is transported to the authorised bank branch in a sealed bag. Moreover, the bag is equipped with a GPS tracker to be located at all times. Once the gold ornaments arrive at the branch, they are stored in a secure locker under military-grade security and CCTV surveillance. In addition to this, we provide 100% door-to-door gold insurance cover. Hence, you do not have to worry about the safety of your gold.
Head over to the Repay your Loan page and sign into to your profile by using your mobile number and OTP. After logging in, select the “Part Payment” option when making the payment. The part payment amount can be anywhere between the amount of monthly interest and the full closure amount.
No, your CIBIL score is not taken into account when availing a gold loan.
The lending institutions that offer MUDRA loans are Non-Banking Financial Corporations (NBFCS), Public and Private Sector Banks, Small Finance Banks (SFBs), Micro Finance Institutions (MFIs) and Regional Rural Banks (RRBs).
Yes, you can choose to part release your gold ornaments. However, you must keep in mind that the weight of individual gold ornaments should be approximately 10 grams or more.
Yes, you can repledge your gold and continue an existing loan. You can get in touch with our customer service team to start the process.
Yes, the applicants must be between the age of 18 and 65 years to avail this form of credit.
Your request has been received, our customer relationship manager has been notified and will call you shortly
(5.88% P.A)