What is Mudra Loan?
The MUDRA loan is provided under the Pradhan Mantri MUDRA Yojana (PMMY) to non-farming and non-corporate micro and small enterprises. These enterprises can avail loans up to Rs.10 Lakh under the MUDRA (Micro Units Development & Refinance Agency Ltd.) scheme.
The scheme was launched by the Prime Minister back in 8th April 2015, and as of FY 2017-18 has:
• Sanctioned more than 4 crore loans.
• Sanctioned more than Rs.2.5 lakh crore.
• Disbursed more than Rs.2.4 lakh crore.
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There are 3 products under the Pradhan Mantri MUDRA loan:
Shishu under the MUDRA loan scheme provides up to Rs.50,000 to those entrepreneurs who are either in their initial stages of business or looking to start one.
• Machinery quotation and other items to be purchased.
• Details of the machinery to be purchased.
Borrowers also have to provide details of the machinery supplier.
Kishor under the MUDRA loan offers up to Rs.5 Lakh to those businesspersons who are looking for additional funds to expand their operations.
• Last 6 months of account statements from an existing banker, if any.
• Balance sheet for last 2 years.
• Income/sales tax returns.
• Estimated balance sheet for 1 year or for the duration of the loan.
• Memorandum and articles of association, if any.
• Sales made before filing the loan application and in the current FY.
Borrowers also have to provide a report containing the economic and technical viability of the business.
Under the Pradhan Mantri MUDRA loan arrangement, Tarun sanctions up to Rs.10 Lakh if the business owner meets certain eligibility criterions.
• Same as Kishor.
In addition to the above, borrows also have to provide:
• Certificate of SC, ST, OBC, etc.
• Address proof
• Identity proof
If you are looking for a higher loan amount with a hassle-free borrowing experience, you can opt for a Business Loan
from Bajaj Finserv that is especially designed for SMEs like yours. With unsecured loans up to Rs.30 lakh that can be repaid within 12-60 months, your loans get approved in under 24 hours with minimal documentation.
Bajaj Finserv even provides pre-approved offers to existing customers that not just simplify the application process but also gives you access to instant funds.
Know more about - How to apply for Mudra Loan