InvestorQ : What are the features of the MUDRA card?
Priyanka Singh made post

What are the features of the MUDRA card?

seema Upadhyaya answered.
3 years ago

Before we understand the features of the MUDRA card, let’s first understand what the MUDRA Yojana is. MUDRA, acronym for Micro Units Development & Refinance Agency Ltd (MUDRA), is a new Government of India-created institution that provides refinancing and several development functions to micro unit enterprises.

MUDRA primarily provides funds to non-corporate and non-farm sector income generating activities of micro and small enterprises whose credit needs are below Rs 10 lakh.

Based on which stage of growth and funding requirement the micro unit is in, MUDRA has created three schemes that provide loans:

1. Shishu: covering loans up to Rs 50,000

2. Kishore: covering loans above Rs 50,000 and up to Rs 5,00,000

3. Tarun: covering loans above Rs 5,00,000 and up to Rs 10,00,000

All bank branches will provide loans to micro units, sans any collateral.

Coming to your question, a MUDRA Yojana card is a debit card that’s issued with a Pradhan Mantri Mudra Yojana account.

Features of the MUDRA Yojana card are:

- RuPay Mudra Debit Card is issued with account opened under Pradhan Mantri Mudra Yojana

- The MUDRA card helps a borrower avail credit in a hassle free and flexible way through a RuPay card

- It is an innovative product which provides working capital facility as cash credit arrangement

- MUDRA cardholder can make use of the card for multiple withdrawals and credit services, in order to manage the working capital limit in a most efficient manner and keep the interest burden minimum

- The card comes with a Personal Accident and Permanent Total Disability Insurance cover of Rs. 1 lakh