How to apply for MUDRA loan?

The Pradhan Mantri MUDRA Yojana (PMMY) launched on 8th April 2015, provides loans to small business owners up to the amount of Rs.10 Lakh.
Following are the individuals who need to know how to apply for MUDRA loan under this scheme:
1. Small manufacturing business owners
2. Fruit and vegetable sellers
3. Artisans
4. Shopkeepers
5. Those associated with various agriculture activities like livestock, dairy, pisciculture, poultry, fishery, etc.
 

How to apply for MUDRA loan at a financial institution?

Individuals have to follow the steps mentioned below to avail a MUDRA loan:

Step 1. Keep the necessary documents ready
Applicants need to have the necessary documents required to avail a MUDRA loan. These include identity proof (Aadhaar, Voter ID, PAN, Driving License, etc.), address proof (electricity bill, telephone bill, gas bill, water bill, etc.), proof of business (business registration certificate, etc.).
Step 2. Approach a financial institution
Individuals can apply for a MUDRA loan with almost all leading financial institutions in India.
Step 3. Fill in the loan application form
Applicants then have to fill the MUDRA loan application form and furnish their personal and business details. They also have to ascertain the amount they want to avail before knowing how to apply for MUDRA loan scheme.
 

Under the PMMY scheme, one can apply for 3 types of MUDRA loans:

I. Sishu - Covers loans up to Rs.50,000 for starting a business or for businesses in its early stages.
II. Kishor - Covers loans up to Rs.5 Lakh for already established businesses seeking additional funding.
III. Tarun - Covers loans up to Rs. 10 Lakh for well-established businesses meeting certain eligibility.

Once you’ve followed the above steps, the bank or financial institution will sanction the MUDRA loan into your account.

Some lending institutions also provide the option to apply for a MUDRA loan online.

Leading NBFCs like Bajaj Finserv offer similar business loans for MSMEs up to Rs.30 lakh which can easily be applied for online. Such loans can be availed whenever there is a shortage of working capital, need to buy improved machinery & equipment, need for debt reconciliation, etc. These loans are quick to avail and can be used to address multiple financial requirements.