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Mudra Loan in India
mudra-loan-in-India

Mudra loans in India

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.

Purpose Of MUDRA Loan

The Indian government launched PMMY to achieve the following objectives:

  • Ensuring that the Microfinance Institutions (MFIs) are registered.
  • I am providing a set of guidelines concerning financial assistance provided to the micro and small-scale enterprises.
  • Providing micro and small enterprises with adequate funds to sustain and expand their operations.
  • Helping lower-income groups to grow their business.
  • Providing financial assistance to SC/ST by giving them more lending preference.

Types Of MUDRA Loans

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.

Documents Required For MUDRA Loans

Applicants are required to furnish the following documents to avail a MUDRA loan:

  • A detailed, self-written business plan.
  • 2 passport size photographs
  • Proof of Identity issued by the Government of India like Aadhaar Card
  • Government-issued Proof of Address such as Passport.
  • Income proof documents such as Income Tax Returns and Sales Tax Returns
  • Proof of Ownership of the business such as a Partnership Deed (if it’s a partnership firm) and Trade License.
  • MUDRA loan registration form duly signed by the applicant.
  • Government-issued documents that serve as proof of belonging to special categories such as SC/ST and OBC.

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.

Rupeek Gold Loan – The Perfect Substitute For MUDRA Loan

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:

  • Doorstep Loan Service: You can avail our services from the comfort of your home. Place a request with us through our app and our authorised executive will be there at your location as per the scheduled time to complete the formalities before loan disbursal.
  • Instant Loan Disbursal: Once our authorised executive completes the KYC and gold valuation process, the approved loan amount will be disbursed immediately into your bank account.
  • Overdraft Facility: We offer a gold loan overdraft facility that you can avail to fulfil your short-term financial requirements. You only have to pay interest on the amount you end up utilising.
  • Flexible Repayment: Individuals availing our gold loan can repay the loan amount in instalments, or they can choose to repay the entire outstanding amount at the end of the six months’ tenure.
  • Minimal Documentation: If you choose to avail a gold loan with us, you only have to submit your KYC documents. There is no requirement for additional documents such as income proof and proof of ownership of a business.
  • No End-use Restrictions: Contrary to an NBFC MUDRA Loan, there’s zero spending restraints in relation to the loan amount availed from us. You can use the amount to fulfil various financial requirements. However, utilising the funds to finance illegal activities is against our policies and is strictly prohibited.
  • Lowest Interest Rates: We offer gold loans at the lowest interest rates (starting at 0.79% per month.). You can choose any one of our schemes that are best suited for your needs.

Differences Between MUDRA Loan and Rupeek’s Gold Loan

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.

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Benefits of Gold Loan over Mudra Loan.
  • <1 lakh
  • 2 lakh
  • 3 lakh
  • 5 lakh
  • 10 lakh
  • 20 lakh
Comparision Parameters Mudra Loan Gold Loan
Interest Rate 2.39% 0.79%
Monthly Interest Amount
Eligibility & Documentation More Documents Needed Only KYC Needed
Processing Time & Disbursement 2 days to 1 week Within a day
Required Gold Weight -
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Frequently asked questions

  1. What is MUDRA Loan Interest rate?

The interest rate of a MUDRA loan differs from one financial institution to another; there is no fixed rate.

  1. Can I pledge any gold item to avail a gold with Rupeek?

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.

  1. Should I be concerned regarding the safety of my gold items?

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.

  1. How can I make part payment of the loan amount availed from Rupeek?

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.

  1. Will my credit score be considered if I avail a gold loan for my enterprise?

No, your CIBIL score is not taken into account when availing a gold loan.

  1. Which lending institutions can provide a MUDRA 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).

  1. Can I opt for a partial release of my gold ornaments?

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.

  1. Can I repledge the gold ornaments?

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.

  1. Is there any age criterion for a MUDRA loan?

Yes, the applicants must be between the age of 18 and 65 years to avail this form of credit.

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