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
Scheme name Amount of loans SHISHU Loan amount up to Rs. 50,000 KISHOR Amount from Rs. 50,000 to Rs. 5 lakhs TARUN Amount from Rs. 5 lakhs to Rs. 10 lakhs 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
Interest rate 7.30% onwards Processing fee Nil up to 0.5% Loan amount 10 lakhs Loan tenure Up to 5 years The Interest rate for MUDRA Yojana by Top Banks
Bank name Rate of Interest State Bank of India 9.75% onwards Punjab National Bank 8.05% onwards Bank of Maharashtra 9.25 % onwards Bank of Baroda 8.40% onwards HDFC Bank 16% onwards Bajaj Finserv 17% onwards IDFC First Bank 20% onwards ICICI Bank 18% onwards TATA Capital Finance 17% onwards Axis Bank 17% onwards FlexiLoans 16% onwards Lendingkart Finance 18% onwards Indifi Finance 18% onwards Oriental Bank of Commerce 8.15% onwards 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
Also read: - Know All About Mudra Loan Eligibility for New Business
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