A MUDRA Card?
The MUDRA card is a credit product that the borrower can use to buy business-related raw material, etc. The card is given after loan has been sanctioned under the MUDRA Yojana and it has a limit of 10 per cent of the business loan (subject to Rs 10,000 maximum). The borrower can avail of the facility of working-capital arrangement in the form of cash credit (CC)/overdraft (OD). Since the MUDRA card is a RuPay debit card, it can be used for drawing cash from an ATM or a business correspondent; the borrower can also make purchase using a point of sale (POS) machine. There is a provision to repay the amount as and when surplus cash is available, thereby reducing the interest cost.