Ms. Rashmi, after completed Bachelor's Degree in Dental Surgery, want to open a Dental Clinic. For establishing dental clinic, she needs some funds for purchasing of necessary equipment and furniture and other establishm

The bank branch can provide credit facilities to Rashmi, as under: (i) Refinance Scheme for Banks/NBFCs: Under this scheme the refinance is available for term loan and working capital loan up to an amount of ₹ 10 lakh per unit. The Banks and Financial institutes provide credit facilities to the applicants under the categories (i) Shishu: covering loans upto ₹ 50,000/-, (ii) Kishor: covering loans above ₹ 50,000/- and upto ₹ 5 lakh, and (iii) Tarun: covering loans above ₹ 5 lakh and upto ₹ 10 lakh. In order to encourage women entrepreneurs, the financing banks / Micro Finance Institutes may consider extending additional facilities, including interest reduction on their loan. Since the estimated amount is around ₹ 7 lacs for dental clinic of Ms. Rashmi, banks can finance under "Tarun" scheme. (ii) MUDRA Card: Banks can also provide a MUDRA card to Ms. Rashmi for working capital finance. MUDRA Card is a debit card issued against the MUDRA loan account for working capital portion of the loan. The borrower can make use of MUDRA Card in multiple withdrawal and credit, to manage the working capital limit in a most efficient manner and keep the interest burden minimum. Benefits of MUDRA Schemes: (a) No collateral required: The Pradhan Mantri MUDRA Yojana loan is an unsecured type of business loan that means the loan borrower does not require to pledge their valuable assets as collateral to the lender. Under this scheme the government is the credit guarantee for the borrower. (b) Rate of interest are affordable: Applicants can avail business loans for small amounts at nominal interest rates from eligible Banks / Financial institutes. (c) Lower interest rates for women applicants: In order to encourage women entrepreneurs, the lending Institutes provide reduction in interest rates to women applicants. (d) Multipurpose use: Credit facility sanctioned under MUDRA scheme can be utilised for fund or non-fund based needs of the business.