Explore how to choose between a Mudra loan and a business loan for your business needs. Learn the key differences and features, including the benefits of the Bajaj Finserv Business Loan.
As Dhanteras approaches, many entrepreneurs reflect on the financial opportunities available to them. It's a time for new beginnings and investments, making it the perfect moment to consider funding options to boost growth. Among the various financial products available, the Mudra loan and business loan stand out for their distinct features and benefits. Understanding both these options and their differences can help businesses make smart decisions.
Understanding Mudra Loans
Mudra loans, initiated under the Pradhan Mantri Mudra Yojana (PMMY), aim to provide financial support to micro and small enterprises. These are perfect if one is running a small business, such as street vendors, artisans, and small manufacturers.
Here are some features of this loan:
- Loan amount: Mudra loans offer financing up to ₹10 lakh, making them ideal for small businesses looking for a financial boost.
- Types of Mudra Loans:
Shishu: Loans up to ₹50,000 for new businesses.
Kishore: Loans between ₹50,001 and ₹5 lakh for growing businesses.
Tarun: Loans from ₹5 lakh to ₹10 lakh for established businesses.
- Repayment period: Borrowers can repay the loan amount along with accrued interest over a period of 3 to 7 years.
Understanding business loans
On the other hand, business loans are designed for various business needs. They can be used for equipment purchases, working capital, or business expansion. Bajaj Finance offers a comprehensive business loan with several attractive features:
- High loan amount: Since the loan amount ranges from ₹2 lakh to ₹80 lakh, borrowers can opt for this loan for both small and bigger business expenses.
- Multiple tenures: The repayment options extend from 12 months to 96 months, providing flexibility to businesses.
- No collateral required: Bajaj Finserv Business Loans are unsecured, cutting off the need for borrowers to pledge assets.
- Fast disbursal: The loan amount is credited to the borrower’s bank account within 48 hours of approval.
- Transparent charges: All fees and charges are clearly outlined, ensuring no hidden costs for borrowers.
Key differences between Mudra loans and business loans
Some factors borrowers must consider when choosing between a Mudra loan and a business loan:
When choosing between a Mudra loan and a business loan, borrowers should evaluate factors like the loan's purpose, required amount, and repayment capacity. As Dhanteras approaches, understanding these options can empower business owners to make the right decision to grow their businesses. Why wait, get the right financial support needed to seize festive opportunities with the Bajaj Finserv Business Loan.
*Terms and conditions apply.
