Mudra Loan- Pradhan Mantri MUDRA Yojana

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Mudra Loan- Pradhan Mantri MUDRA Yojana

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Mudra Yojana | Mudra Loan Online Apply Pradhan Mantri MUDRA Yojana (PMMY) is a flagship scheme launched by the Hon’ble Prime Minister for providin

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Mudra Yojana | Mudra Loan Online Apply

Pradhan Mantri MUDRA Yojana (PMMY) is a flagship scheme launched by the Hon’ble Prime Minister for providing affordable credit loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. The Government of India started this Mudra loan yojana with the aim to help small scale businesses to expand their business and attain success.

Who can avail Pradhan Mantri Mudra Loan

Companies, individual and enterprises from both profit and non-profit sector can avail a loan under this scheme and avail a mudra loan. The borrower can approach any of the designated bank or can apply mudra loan online apply through this portal www.udyamimitra.in .  MUDRA scheme has created three products namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ and Borrowers can avail business loans ranging from Rs.50,000 to Rs.10 lakh, on the basis of categories.

The Government of India designed this e Mudra schemes to bring enterprises into the formal financial system. Loans under PM mudra loan scheme are available to enterprises engaged in income generation through manufacturing, trading and services.

There are so many micro, small, medium and large companies in India which can contribute greatly to the country’s economy. To be able to allow smooth flow with the aid of money, the Pradhan Mantri Mudra Yojana scheme was launched to help Indian small-scale companies who come to a standstill and facing shortage of funding. Under this Mudra Yojana scheme, enterprises can avail monetary aid from banks in the form of mudra scheme loan and come out of ill situation. This Mudra scheme was officially launched on 8th April, 2015 and specially designed to funding such type of enterprises. Any company or individual who are eligible, can avail the mudra loan financial help up to the amount of Rs. 10 lakhs.

Companies, Banks and financial institution that would ideally be eligible for availing this mudra loan are:

  1. NBFCs (Non-banking financial corporations)
  2. Small finance banks
  3. MFIs (Micro finance institutions)
  4. Commercial banks
  5. RRB’s (Railway recruitment boards)
Mudra Loan

Benefits of Mudra Loan

Some benefits of Pradhan Mantri mudra yojana are stated below;

Here are the key features and benefits of Mudra loan:

  • Banking and financial services can be availed in both rural and urban areas.
  • No collateral or third party security is needed to avail any of the mudra schemes
  • Financial backing can be obtained by micro-small businesses and start-ups.
  • The Mudra loan interest rate is very affordable and doesn’t exceed 1% on a monthly basis
  • The repayment period of the scheme can extend up to seven years.
  • The borrower’s credit guarantee is taken by the government, so if a borrower is unable to repay the amount borrowed, the responsibility for the loss will be borne by the government.
  • Financial aid is available through this scheme in areas where people have no access to basic banking facilities.
  • It is very easy to withdraw the sanctioned amount as no need physical visit to the bank required.
  • Women borrowers can avail the loan at discounted interest rates.
  • Food vendors, shopkeepers and other small business owners can make the most of this scheme.
  • The funds borrowed through this scheme can only be used for business purposes.

Purposes of Mudra Loan

Mudra Loan in 2021-22

The Mudra loan helps Micro, small and medium enterprises (MSME’s) in contributing an important role in the economy of the country by fulfilling the following mentioned purposes;

  1. Commencing a new business
  2. Expanding and growing an existing business
  3. Purchasing of machinery
  4. Purchase of equipment
  5. Training as well as hiring of competent staff
  6. Achieve working capital for business
  7. Purchase of commercial vehicles

Types of industries that can apply for the Pradhan Mantri Mudra Yojana scheme are:

  • Business vendors
  • Self-employed entrepreneurs
  • Small scale manufacturers
  • Service based companies
  • Agriculture sector
  • Shopkeepers
  • Food production industry
  • Handicraftsmen
  • Restoration and repair shops
  • Truck owners

Activities covered under Mudra Scheme

Activities covered under Mudra Loan are given below:

  • Communities, social, and personal service activities
  • Business loans for shopkeepers and traders
  • Food products sector
  • Agriculture related activities
  • Transport vehicles used for transport of both goods and passengers
  • Textile products sector and activities
  • Equipment finance scheme for Micro Units

Features of the Mudra Yojana:

The below mentioned features of the mudra loan make this scheme impressive over several others central welfare schemes for the benefits to small and medium scale industries, offered by the government;

  1. Both, new as well as existing companies can apply for the pm mudra loan
  2. It is mainly aimed at serving industries that are engaged in trading, manufacturing and services
  3. The amount of this loan can be used to fulfill the working capital requirements of the availing company
  4. However the tenure of the mudra loan ranges from 3 years to 5 years, but it can be increased up to 7 years, depending on what is agreed upon at the time of processing
  5. Anyone able to access and directly online apply for mudra loan through mudra website and mudra.

What are the Mudra Loan Products?

In Mudra Yojana, the Mudra loan is offered namely, ‘Shishu, Kishor and Tarun. These three products are categorized based on the monetary requirements and level of development of the proposed unit or company. Once the loan is approved, these three funds can then be bifurcated for salaries, capital needs, other operating costs, etc.

Types of Mudra Loan Products

SchemeLoan Amount
ShishuUp to Rs.50,000
KishorRs.50,000 –to-  Rs.5 lakh
TarunRs.5 lakh-to-  Rs.10 lakh

These three products are termed as Mudra loans.

MUDRA Loan Eligibility

Applicants who have their own business plans both, rural and urban areas of India can apply for the Mudra loan for service sector activities, or trading or manufacturing activities require amounts of up to Rs.10 lakh.

As per the eligibility criteria for MUDRA Loan, an applicant should be:

Eligibility Criteria of Mudra Loan

Mudra Loan Eligibility

Age Limit18 -65 years
Type of IndustryIndividual occupied in agriculture, fruit and vegetable vendor, Craftsmen, small scale manufacturer, store owner.
Who can avail a Mudra LoanShishu – New company commencement Kishor & Tarun – Expansion of existing company
Security or collateralNo collateral or third-party security is required
Institutions eligible to offer Mudra LoanPublic Sector Banks, Private Sector Banks, Micro Finance Institutions, and Regional Rural Banks
Documents requiredProof of identity, proof of residence, application form and passport size photos

What is the interest rate for MUDRA loan?

The interest rate applied on MUDRA loans are based on RBI defined MCLR (Marginal Cost of Lending Rate) and depends on the profile of the applicant. There are several public sector and the private sector banks offering MUDRA loans. All the lenders banks have their set guidelines of the final rate of interest at which the loan is provided to an applicant. This is based on the scrutinizing of the business requirements of the applicant as well.

Documents Required to Apply for Mudra Loan

The required documents for Pradhan Mantri Mudra loan will be:

The following mentioned documents would be the minimum basic requirement when applying for Mudra loan;

The Mudra loan documents needed for this loan include;

  1. Proof of identity (PAN card, Aadhar card, driver license, voter’s ID, etc.)
  2. Proof of address (Passport, driver’s license, Aadhar card, etc.)
  3. Passport sized photos of the borrower/applicant
  4. SC, ST, OBC, etc. certificates (if any)
  5. Memorandum of Association (MOA) (if any)
  6. Articles of Association (AOA) (if any)
  7. Account of successful sales in the current financial year, before the application of loan
  8. Income tax/ Sales returns
  9. Quotation proof of merchandise/equipment/plant to be purchased

How to Apply for Mudra loan?

  • Keep the necessary documents ready i.e your ID proof, address proof, and business proof.
  • Approach to a bank/ lender who are enrolled under the MUDRA scheme and fill up the application form.
  • Submit the necessary documents and details.

Application Procedure for Mudra Loan online apply

Mudra Link

The Mudra loan application can be applied by following the below mentioned steps;

  1. Visit the official website – https://www.mudra.org.in/ and then download the application form.
  2. Fill this form with accurate details such as name, address, number, and KYC details.
  3. The required Mudra loan documents need to be submitted online along with the application form.
  4. Selected bank will then verify the documents
  5. Fill additional procedures required by the bank.

SBI Mudra Loan- SBI e Mudra Loan

The State Bank of India (SBI) offers funding support of up to Rs. 10 Lakh under e mudra loan to individuals and Micro, Small & Medium Enterprises under the direction and guidance of the Micro-Units Development and Refinance Agency (MUDRA). SBI offers Mudra Loans at competitive interest rates with flexible EMI options.

How to Apply for SBI e-Mudra Loan?

SBI Mudra Loan Online Apply

Visit the SBI e-mudra portal and follow the below-mentioned steps:

Step 1: from the drop-down menu, select Pradhan Mantri Mudra Yojana Application Form.

Step 2: Visit the SBI official website https://emudra.sbi.co.in:8044/emudra and click ‘Proceed’.

Step 3: For e-KYC purposes provide the required details like the applicant’s Aadhar card number.

Step 4: After Completing SBI formalities and loan process, the applicant shall receive an SMS. To complete the further process, revisit the e-MUDRA portal.

Step 5: Time limit for this process is within 30 after the receipt of the SMS of loan sanction.

Mudra Loan FAQs:

1. What is the full form of MUDRA?

MUDRA stands for Micro Units Development and Refinance Agency.

2. What is the main purpose of MUDRA Loan?

The purpose of the loan serves income generation,

  • Basic Loan for Shopkeepers, vendors, traders and another service sector.
    • Use of MUDRA Cards online to meet working capital needs.
    • Loans to the transport sector

3. Who can borrow Mudra loan?

Any individual or MSMEs who runs small business are eligible to apply for mudra loan.

4. Can loan application form be submitted online?

Yes, you can apply e mudra loan online visiting the official website Mudra loan – www.mudra.org.in.

5. Does MUDRA scheme provide any extend portfolio guarantee?

Yes, Government of India provides Credit Guarantee under the MUDRA Yojana to mitigate collateral and security concerns of the lending institutions.

6. What is Mudra Loan limit from banks?

The maximum loan amount for the mudra loan that can be availed from banks is up to Rs.10 lakh.

7. What is the normal repayment of MUDRA loans?

The normal term of repayment is 12 to 60 months. But it very much depends upon the business details and applicant.

8. What is the processing time of MUDRA loan?

Normally it processed in 24 hours.

9. Is there an offline method of availing the Mudra loan?

Yes. Many private or commercial banks offer this facility so you can visit and an executive will guide you through the process.

10. My Cibil score is low. Does Cibil score affect my Mudra Loan application?

No, your application will not be affected due to Cibil Score if you are looking to apply for a Mudra Loan.

11. Is PAN card necessary if I want to avail a MUDRA loan?

PAN cards are not mandatory to avail MUDRA loans, only need the other KYC requirements.

12. Is ITR Compulsory to apply for Mudra Loan?

If you are looking to apply for a Mudra Loan, you will have to produce your income tax returns (ITR) for the past two

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