What in micro finance loans? Main reason providing these loans

May 26, 2020 admin Loans 14526

Micro Units Development & Refinance Agency Ltd. (MUDRA) is a new institution set up by Government of India to provide funding to the non-corporate, non-farm sector income generating activities of micro and small enterprises whose credit needs are below ₹10 Lakh.

Main agenda of micro finance loans is to promote small scale business which are below 10 lakhs some times it may be around 5 lakhs also
one more reason for developing this kind of micro finance is to promote ladies enterprenuership where ladies are facing many financial problems to give financial support many governments are providing this kind of financial assistance

These loans come with a variety of benefits like low interest rates, minimal documentation, nil collateral and longer repayment tenures. The loans are designed to facilitate women become financially and economically independent.

Eligibility

1. Loans for women entrepreneurs planning to establish a beauty parlour or similar micro units is usually offered to women between the age group of 20-60.

2. Businesses with women proprietorship, partnership firms with women as major stakeholders are also eligible to apply for this type of loan.

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