·
Personal
Loan
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Mudra Loan
Mudra Loan
The Pradhan Mantri Mudra Yojana provides MUDRA Loans (PMMY). Micro-Units Development and Refinance Agency is known by the initials MUDRA. According to the Sishu, Kishor, and Tarun categories, borrowers can obtain business loans via this programme in the range of Rs. 50,000 to Rs. 10 lakh.
Pradhan
Mantri Yojana Scheme
Types of
MUDRA Loan Products
How to
Apply for MUDRA loan?
MUDRA
Loan Eligibility
Interest
rate for MUDRA loan
Required
Documents to Apply
What is the Pradhan Mantri Yojana Scheme?
Aiming to support small companies grow and
succeed, the Pradhan Mantri Yojana was introduced in 2015. Under this
programme, businesses in the for-profit and nonprofit sectors are both eligible
to apply for a loan. The maximum amount available is Rs. 10 lakh.
Types of companies that can avail a loan under
the Pradhan Mantri Yojana scheme are:
·
Railway Recruitment
Boards (RRB’s)
·
Micro Finance
Institutions (MFIs)
·
Commercial Banks
·
Non-Banking Financial
Corporations (NBFCs)
·
Small Finance Banks
Types of industries that can avail a loan
under the Pradhan Mantri Yojana scheme are:
·
Business vendors
·
Shopkeepers
·
Agriculture sector
·
Food production
industry
·
Handicraftsmen
·
Small scale
manufacturers
·
Self-employed
entrepreneurs
·
Restoration and repair
shops
·
Service based
companies
·
Truck owners
Types of Mudra Loan Products
There are three types of mudra loan schemes,
namely Tarun, Kishor, and Shishu.
Name of Scheme |
Loan Amount |
Shishu |
Up
to Rs.50,000 |
Kishor |
Rs.50,000
to Rs.5 lakh |
Tarun |
Rs.5
lakh to Rs.10 lakh |
Purpose of Pradhan Mantri Mudra Loan Yojana
MUDRA loans can be obtained for a number of purposes
that contribute to revenue generation and job creation. The following are the
primary reasons that Mudra loans are obtained:
1.
Business loan for
shopkeepers, traders, vendors and other activities in the service sector
2.
Equipment finance for
small enterprise units
3.
Working capital loan
via MUDRA cards
4.
Transport vehicle
loans
5.
People involved in
Agri-allied non-farm income generating activities such as poultry farming,
bee-keeping, pisciculture, etc. can apply for a Mudra Loan.
6.
People who use
tractors, tillers as well as two wheelers for commercial activities can apply
for a Mudra Loan.
Activities covered under Mudra Loan
Given below is the list of activities that are
covered under Mudra Loan are:
·
Food products sector
·
Transport vehicles
used for transport of both goods and passengers
·
Communities, social,
and personal service activities
·
Business loans for
shopkeepers and traders
·
Textile products
sector and activities
·
Agriculture related
activities
·
Equipment finance
scheme for Micro Units
Mudra Loan Achievement
How to Apply for Mudra loan?
·
Step
1 : Ensure that the
necessary documents are kept ready. The main documents you will require are
your ID proof, address proof, and business proof.
·
Step
2 : Approach a
lender who is enrolled under the MUDRA scheme and fill up the application form.
·
Step
3 : Submit the
necessary documents.
Learn more about how to apply Mudra loan through online
and offline mode.
MUDRA Loan Eligibility
Indian residents may qualify for Mudra loans
if they have their own business ideas for service industry, commerce, or manufacturing
activities and need sums up to Rs. 10 lakh. Banks in the public and commercial
sectors as well as regional rural banks (RRBs), small financing banks (SFBs),
and microfinance organisations can provide it (MFIs).
As per the eligibility criteria for MUDRA
Loan, an applicant should be:
Minimum
age of eligibility |
18
years |
Maximum
age of eligibility |
65
years |
Who
can avail a Mudra Loan |
Loans
can be availed by new and existing units |
Security
or collateral |
No
collateral or third-party security is required |
Institutions
eligible to offer Mudra Loan |
Public
Sector Banks, Private Sector Banks, Micro Finance Institutions, and Regional
Rural Banks |
Documents
required |
Proof
of identity, proof of residence, application form and passport size photos |
What is the interest rate for MUDRA loan?
According on the applicant's characteristics,
the interest rate for a Mudra loan varies. In both the public and private
sectors, there are several banks that provide MUDRA loans. The ultimate
interest rate at which a loan is granted to a candidate is chosen by the lender
itself, and all lenders have a set of predetermined parameters. The applicant's
business requirements are also carefully examined before doing this.
Documents Required to apply for MUDRA Loan
The documents required for MUDRA Loan can be
listed as follows:
Particulars |
Type of Document |
Application
Form |
Duly
filled up application form on the basis of the loan category |
Proof
of Identity |
Aadhaar
card, Voter’s ID card, driving license, passport, etc. |
Proof
of Address |
Utility
bills (electricity bill, telephone bill, and so on), Aadhaar card, Voter’s ID
card, passport, etc. |
Photographs |
2
passport-sized photographs of the applicant |
Caste
Certificate |
If
applicable |
Other
documents |
Quotation
of the commodity or items which are to be bought and used for the business |
Benefits of Taking MUDRA Loan
Here are the key features and benefits of
Mudra loan:
·
Banking and financial
services can be availed in both rural and urban areas.
·
Financial backing can
be obtained by micro-small businesses and start-ups.
·
Business loans can be
taken for small amounts at affordable interest rates.
·
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.
·
Food vendors,
shopkeepers and other small business owners can make the most of this scheme.
·
Financial aid is
available through this scheme in areas where people have no access to basic
banking facilities.
·
The repayment period
of the scheme can extend up to seven years.
·
Women borrowers can
avail the loan at discounted interest rates.
·
Refinance schemes can
also be availed with designated lenders.
·
Individuals who wish
to generate income through micro enterprise activities can avail the Micro
Credit Scheme.
·
The Mudra loan scheme
is in collaboration with the “Make In India” campaign which the government has
initiated to foster innovation, facilitate investment, improve skill
development, and build the best manufacturing infrastructure in the country.
·
There is no need for
collateral or security to avail this scheme.
·
The funds borrowed
through this scheme can only be used for business purposes.
Latest benefits offered under Mudra Shishu Category as per
Atmanirbhar Abhiyan
The Indian Government
under the Atmanirbhar Abhiyan recently announced certain benefits the Mudra
Shishu category will be eligible to receive. The benefits are:
·
A relief of up to
Rs.1,500 crore will be provided to borrowers under the Mudra Shishu category.
·
Interest subsidy worth
Rs.1,500 crore will be provided to Mudra Shishu borrowers.
·
Fast recipients will
get a discount of 2% on their interest rate for a period of one year by the
Government of India.
What is a MUDRA Card?
A Mudra Card, a debit
card, is given to you when you apply for a Mudra Loan. You will have to create
an account before the loan can be granted to you if your application is
approved. The loan proceeds that are issued to your Mudra account once your
loan application is approved can be withdrawn using the Mudra Card.
FAQs on MUDRA Loan
1. What type of loan is Mudra Loan?
Mudra Loan can be considered as a type of term
loan where a group or an individual can avail a loan for expansion of business,
purchasing of inventory, etc.
2. What is Mudra Loan limit from banks?
The maximum loan amount that can be availed
from banks is up to Rs.10 lakh.
3. Is ITR Compulsory for Mudra Loan?
Yes, you will have to produce your income tax
returns (ITR) for the past two years if you are looking to apply for a Mudra
Loan.
4. Does Cibil score affect Mudra Loan?
No, your Cibil Score will not be taken into
consideration if you are looking to apply for a Mudra Loan.
5. What kind of clients does MUDRA loan
target?
The Non-Corporate Small Business Segment is
the target market for MUDRA loans. This segment comprises of millions of
partnership organisations and proprietorships that operate as service sector
units, small enterprises, small manufacturing units, vegetable or fruit
sellers, repair shops, etc. both urban and rural settings.
6. Are there any subsidies under the Pradhan
Mantri MUDRA Yojana?
No. There are no subsidies under the Pradhan
Mantri MUDRA Yojana.
7. Can I avail a MUDRA loan if I have recently
graduated from college?
Yes. Applying for MUDRA loans is possible for recent graduates
who want to launch their own enterprises. MUDRA can assist you in starting your
business based on the type of enterprise you want to launch and the project's
requirements.
8. I am a woman entrepreneur and wish to start
my own boutique. Can MUDRA help?
Yes. Women business owners might benefit from an unique
refinancing programme that is available to them. When you obtain a MUDRA loan
through an NBFC or a microfinance institution, the Mahila Uddyami Scheme, as it
is known, gives an interest refund of 0.25 percent.
9. Do I need to have a PAN card if I want to
avail a MUDRA loan?
PAN cards are not a prerequisite for people
who want to apply for MUDRA loans, but you must still comply with the other KYC
standards established by the lending institution.
10. Who can borrow from Mudra Bank?
Any individual or
MSMEs who runs small business are eligible to apply for mudra loan.
News About Mudra Loan
·
Near
100% disbursal rate under the Mudra loan scheme
The
Pradhan Mantri Mudra Yojana (PMMY) scheme has completed nearly all of its
disbursements in the first seven months of the current fiscal year. In all,
private lenders, public lenders, small financing banks, and NBFCs have
disbursed Rs. 1.17 lakh crore, totaling Rs. 1.11 lakh crore. The programme was
introduced on April 8, 2015, by the prime minister. Credit provision for
microbusiness owners is the scheme's primary goal. In accordance with the plan,
three distinct loan types—Tarun, Kishore, and Shishu—are accessible.