Check Documents Required to Apply for a MUDRA loan

What are MUDRA loans? 

MUDRA loan is also known as MUDRA Yojana, is a loan scheme that was established by the Indian government in 2015 to provide loan amounts up to 10 lakhs for the borrower and Micro, Small, Medium, and Large (MSME) companies. It is in the form of a monetary fund under the Pradhan Mantri Mudra Yojana (PMMY) Scheme.  

Many companies are appropriate for providing MUDRA Loan are given below: -  

• Commercial banks  
• Financial institutions  
• Non-banking financial corporations (NBFCs) 
• Micro financial institutions (MFIs) 
• Railway recruitment boards (RRBs) 

Documents required for MUDRA Loan 

Following are the Documents required for MUDRA Loans  

• 2 passport-sized photographs of an individual 
• Aadhar card and Passport 
• Copy of PAN Card 
• Address proof – Permanent Address proof and also needed if rented 
• Form - 16 of ITR with computation of income file of last 3 years.  
• Bank statement of salary account of last 1 year. 
• Sanction letter and loan schedule (if running) 
• Cheque in Favour of bank for processing fee 
• Salary slips of last 3 years and Appointment letter. 
• Complete property documents along with MAP and Chain + ATS 

Benefits of Pradhan Mantri MUDRA Yojana Scheme 

• Women entrepreneurs can get this loan at a low rate of interest. 
• Security or collateral is not required to avail of this scheme. 
• Provide loan amount up to Rs. 10 lakhs. 
• It should be used as an overdraft facility, term loans, and working capital loans. 
• The payback of this loan can be expanded to seven years. 
• MUDRA Loan comes under the Credit Guarantee Scheme from the Indian government. 
• The amount borrowed for this can be used only for business purposes. 
• Financial services should be provided in both rural and urban areas. 

Forms of MUDRA Yojana loan products:  

There are three forms of MUDRA Loan scheme – Shishu, Kishor, Tarun 

Individuals that can opt for a loan in the Pradhan Mantri MUDRA Yojana scheme are: 

• Agriculture sector 
• Small scale manufacturers 
• Handicraftsmen 
• Artisans  
• Non-farm enterprises 
• Business vendors 
• Shopkeepers 
• Truck owners 
• Equipment finance scheme for micro-units 
• Food production industry 
• Restoration and repair shops 
• Transport vehicles used for passengers and goods 
• Self-employed entrepreneurs 
• Service-based companies 

Eligibility criteria for MUDRA Loans 

Note: - Eligibility depends on the various components such as Business turnover, Repayment history, Age of an individual, Creditworthiness, and Total work experience. 

• The age criteria of an individual are between 18 to 65 years of age. 
• Business includes agriculture, food production, services issued to society and community, and textile. 
• Existing or new firms can apply 
• Audit registered by Chartered Accountant for minimum 1 year. 
• Business continuity for a minimum of 2 years. 

The Interest rate of MUDRA Loans 

The Interest rate for MUDRA Yojana by Top Banks 

Purpose of Pradhan Mantri MUDRA Yojana Scheme 

MUDRA Yojana scheme can opt for several reasons that can help in the establishment of employment and producing income. Given below are the purposes for which MUDRA Loan can be used: -  

• Start a new business 
• Buying a machinery 
• Growing an existing business 
• Transport vehicle loans 
• Purchase of Equipment 
• Purchase of commercial vehicles 
• Hiring as well as Training of a competent staff 
• Working capital loan with PMMY Loan 
• Activities in the service sector for business loans such as Vendors, Traders, Shopkeepers, etc. 
• An individual involved in non-form income-producing like Bee-keeping, Poultry farming, Pisciculture, etc. is eligible for this loan. 
• People who use two-wheelers, as well as tractors for commercial enterprise, can go for this scheme. 

Therefore, planning to get a PMMY Scheme to compare interest rates by top banks to get the best deal for the loan. Apply via financeseva. 

Also read: - Know All About Mudra Loan Eligibility for New Business