Mudra Loan

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.

Disclaimer:
We have discontinued this product (MUDRA Loan) at this time. Please reach out to us on +91-8698010101 to know more about the current financial services provided by us.

Features of the Pradhan Mantri MUDRA Loan Yojana:

There are 3 products under the Pradhan Mantri MUDRA loan scheme:

1. Shishu
Shishu, under the MUDRA loan scheme, provides up to Rs.50,000 to those entrepreneurs who are either in the initial stages of their business or are looking to start one.
Checklist

• 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.

 

2. Kishor
Kishor, under the MUDRA loan scheme, offers up to Rs.10 lakh to businessmen who are looking for additional funds to expand their operations.
Checklist

• 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.

 

3. Tarun
Under the Pradhan Mantri MUDRA loan arrangement, Tarun sanctions up to Rs.10 lakh if the business owner meets certain eligibility criteria.
Checklist

• Same as Kishor.

In addition to the above, borrowers 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.45 lakh, your application gets approved in under 24 hours with minimal documentation. Bajaj Finserv even provides pre-approved offers to existing customers that simplify the application process even further.
 

Objective of PM Mudra Yojana

The PM MUDRA Yojana was launched with an aim to create an inclusive entrepreneurial culture to achieve economic and social success. Under this scheme, the government aims to provide financial assistance and other support to small businesses and micro enterprises to encourage best practices for economic growth.

Procurement of Mudra Yojana

Loans worth around Rs.2,79,481.48 crore have been sanctioned under the Pradhan Mantri Mudra Yojana since the scheme’s inception in 2015. Of this, a total of Rs.2,64,676.44 crore has been disbursed.

 

Mudra Loan FAQs

 

What does MUDRA stand for?

The Central Government of India established MUDRA (Micro Units Development and Refinance Agency Ltd) to support the development of micro-enterprise enterprises by providing financial assistance. The purpose of the PM MUDRA Loan is to provide financial facilities to the small business sector through various financial institutions, such as banks and NBFCs.

 

What is the interest rate charged for a Mudra Loan?

The interest rate on a Mudra loan is nominal. Under the Pradhan Mantri MUDRA Yojana, banks and NBFCs have been advised to follow RBI guidelines and charge a reasonable rate of interest.

 

Who is eligible for a MUDRA loan?

Mudra finance comes with easy-to-meet eligibility criteria. If you are an Indian citizen between the ages of 18 and 65 years with a business plan for any non-farm activity that generates income, such as manufacturing, processing, or the service sector, you can apply for a MUDRA loan under PMMY through a bank or an NBFC. This facility is available to small business owners, such as shopkeepers, sole proprietorship or partnership firms, operating small manufacturing units, repair shops, and small industries in both rural and urban areas.

If you meet these simple MUDRA loan eligibility criteria, you can easily obtain a loan of up to Rs.10 lakh through PMMY at a low interest rate.

What are the documents required to apply for a MUDRA Loan?

If you meet the simple eligibility criteria, all you need to do is submit a few documents to apply for a MUDRA loan. Below is a list of MUDRA loan documents.

Identity proof: Aadhar Card, PAN Card, Passport, Voter ID Card, Driving license, etc.

Address proof: Utility bills, Aadhar Card, Passport, etc.

Proof of business: License or registration document confirming business existence, partnership deed, etc.

Income proof: Balance sheet for the last 2 years, bank account statement, income tax returns, etc.

Is MUDRA loan available now?

Established by the Government of India, the MUDRA scheme provides refinancing assistance of up to Rs.10 lakh for small businesses through leading financial institutions such as banks and NBFCs. Under MUDRA, there are three different loan schemes, namely:

• Shishu: It covers loans up to Rs.50,000
• Kishor: It covers loans above Rs.50,000 and up to Rs.5 lakh
• Tarun: It covers loans above Rs.5 lakh and up to Rs.10 lakh
 

What is the maximum limit of a MUDRA loan?

Once you submit the required documents, you can get a maximum amount of Rs.10 lakh under the MUDRA loan scheme at a nominal rate of interest.

 

Are MUDRA loans easily available for women?

To support entrepreneurship among women, the Government of India extends MUDRA finance to women as well. Under the Mudra Yojana Scheme for Women, budding female entrepreneurs can avail of a MUDRA loan of up to Rs.10 lakh, provided they have a non-farm business, such as manufacturing and service sector.