Explain about Mudra and other loans available in Kerala
Mudra is a scheme launched by the Government of India to provide loans to micro and small enterprises in the non-farm sector. The scheme aims to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them. Mudra stands for Micro Units Development and Refinance Agency Ltd., which is the nodal agency for implementing the scheme.
Mudra loans are available in three categories: Shishu, Kishor and Tarun, depending on the stage of growth and funding needs of the enterprise. Shishu covers loans up to Rs. 50,000, Kishor covers loans from Rs. 50,001 to Rs. 5 lakh, and Tarun covers loans from Rs. 5 lakh to Rs. 10 lakh. The loans are given by various banks, NBFCs, MFIs and other financial institutions at reasonable interest rates and with minimal documentation.
Mudra loans can be used for various purposes such as working capital, capital expenditure, purchase of equipment, furniture, vehicles, etc. The loans can also be used for setting up or upgrading micro enterprises in the manufacturing, processing, trading and service sector, as well as for activities allied to agriculture, such as financing to weavers and artisans.
Mudra loans are available in Kerala through various banks and financial institutions. Some of them are:
- Kerala Gramin Bank: This is the largest regional rural bank in India, with a network of 633 branches across Kerala. It offers Mudra loans under all three categories, with interest rates ranging from 9.75% to 12% per annum.
- State Bank of India: This is the largest public sector bank in India, with a presence in every district of Kerala. It offers Mudra loans under all three categories, with interest rates ranging from 9.3% to 11.55% per annum.
- HDFC Bank: This is one of the leading private sector banks in India, with over 200 branches in Kerala. It offers Mudra loans under all three categories, with interest rates ranging from 11% to 16% per annum.
Apart from Mudra loans, there are other schemes and programs that provide loans to micro and small enterprises in Kerala. Some of them are:
- Kerala State Entrepreneur Development Mission (KSEDM): This is a flagship program of the Government of Kerala to promote entrepreneurship and self-employment among the youth of the state. It provides interest-free loans up to Rs. 20 lakh for setting up new enterprises in any sector.
- Kerala Financial Corporation (KFC): This is a state-owned financial institution that provides term loans, working capital loans and equipment finance to micro, small and medium enterprises in Kerala. It offers loans up to Rs. 10 crore at interest rates ranging from 8% to 14% per annum.
- Kerala State Industrial Development Corporation (KSIDC): This is a state-owned agency that provides financial assistance, consultancy and infrastructure support to industrial units in Kerala. It offers loans up to Rs. 25 crore at interest rates ranging from 9% to 12% per annum.
These are some of the options available for micro and small enterprises in Kerala to avail loans for their business needs. However, before applying for any loan, it is advisable to do a thorough market research, prepare a viable business plan, assess the repayment capacity and compare the terms and conditions of different lenders.