Mudra Loan – Pradhan Mantri Mudra Yojana, What is Mudra Loan

MUDRA LOAN

What is MUDRA Loan?

The MUDRA Loan is a loan provided under the scheme the Pradhan Mantri MUDRA Yojana (PMMY) to non – farming and non – corporate micro and small businesses / enterprises. These businesses or enterprises may get Loan upto Rs. 10 Lacs under this Pradhan Mantri MUDRA Yojana or Mudra Loan Scheme. The MUDRA Loan or may be known as Micro Units Development and Refinance Agency Limited (MUDRA) Scheme are given by the RRB, Small Finance Bank, Commercial Banks, MFIs and NBFCs. The borrower or asker can apply for this MUDRA Loan either by visiting the above given banks or can also apply online through this website/ portal www.udyamimitra.in.

The Pradhan Mantra MUDRA Yojana (PMMY) or the MUDRA Loan covers Individuals / Partnership Firms/ Proprietary Concerns/ Private Limited Companies/ Small Business like Shopkeepers, Self – help Groups, Artisans, Manufacturing Units, Professionals, Service Providers and many others for generating income in their businesses.

Products under the Pradhan Mantri MUDRA Loan (MUDRA Scheme)

There are mainly 3 (three) products under the Pradhan Mantri MUDRA Yojana commonly known as MUDRA Loan:

  1. Shishu
  2. Kishor
  3. Tarun

Let us check the details related with three PMMY Mudra Yojana Products which is given below:

Shishu Loan (Product):

This loan is for those borrower who are looking to start their business or in the processing of established their business. The borrower can borrow loan upto Rs. 50000/- under this scheme. The basic rules or norms for this loan are:

  • Quotation of machinery and other details of other items to be purchased.
  • Details of the machinery that to be purchased.

Kishor Loan (Product):

Under this Kishor Loan in MUDRA Yojana, the borrower can get the loan for expanding their business. Here in this loan, the borrower can get loan starting from Rs. 50001/- upto Rs. 5 Lakhs under this scheme product. The rules or norms of this Kishor MUDRA Loan are as follows:

  • The Bank Account Statement
  • Your Income or Sales Tax Returns
  • The balance sheet of the previous two years.
  • Technical and Economic Viability of the project
  • And estimated balance sheet for the current year.

Tarun Loan (Product):

Here in this Tarun MUDRA Loan, the borrower can get PMMY Tarun Loan for further growth in their business that is already established. The loan sanctioned under this PMMY Tarun Yojana will starts from Rs. 50001/- upto Rs. 10 Lakhs. This Tarun MUDRA Loan is the third and last and very large amount loan. The rules and norms for buying this loan are:

  • As same as Kishor Mudra Loan.
  • One address proof and identity proof
  • Caste Certificate is borrower comes under reservation, i.e. they comes under OBC/ SC/ ST category.

Features of PMMY MUDRA Loan

The some basic features of MUDRA Loan are as follows:

  • There is no minimum amount or minimum limit for this loan.
  • The maximum amount for borrowing the MUDRA Loan is 10 Lacs.
  • There is no need of security for the MUDRA Loan.
  • There is also no processing fee.
  • This MUDRA Loan Scheme is extended to non – farm and non – corporate enterprises. Only some of the farm sector enterprises involved in this services like Horticulture, Fisheries and Food Processing.

Advantages / Benefits of MUDRA Loan

The advantages or the benefits related with the Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency Ltd.) Yojana, PMMY Loan is as follows:

  • There is no processing fee for Shishu and Kishore MUDRA Loan and for Tarun Mudra Loan there is only 0.5% of the loan amount is only the processing fee.
  • This MUDRA LOAN offers income generating opportunities to small and micro enterprises.
  • There is no need of security required for applying for MUDRA Loan.
  • Both, the new person who want to start up their business or an existing person who want to grow their business are eligible to buy this MUDRA Loan.
  • There is no minimum amount prescribed.
  • This MUDRA Scheme Loan provides financial assistance to urban as well as rural areas.
  • The Businesswoman or Women Entrepreneurs may get MUDRA LOANS at lower interest rates.

Eligibility Criteria for MUDRA Loan Scheme

The eligibility criteria required for the MUDRA Loan or the MUDRA Loan Eligibility is given below:

  • Any individual who runs small business enterprise is eligible for applying for MUDRA Loan.
  • The minimum age required to buy this MUDRA Loan is 18 years and maximum age to buy MUDRA Loan is 65 years.
  • Loans can be taken by new or an existing units.
  • There is no third party security or collateral is required for applying this Loan MUDRA.
  • The borrower or an individual should have identity proof, residence proof, passport size photographs and application form are required for buying the MUDRA Loan.

The above given are the eligibility to applying for Pradhan Mantri MUDRA Yojana or the MUDRA Scheme.

Interest Rate of MUDRA Loan

The MUDRA Loan Interest Rate is based on the RBI MCLR (Marginal Cost of Lending Rate) with the rules or break – up given below:

MUDRA Loan Interest Rate on an amount upto Rs. 50000/-:

  • For Micro Enterprises: MCLR + SP
  • For Small Enterprises: (MCLR + SP) + Bank Load

MUDRA Loan Interest Rate on an amount above Rs. 50000/- upto Rs. 2 Lakhs:

  • For Micro Enterprises: (MCLR + SP) + Bank Load
  • For Small Enterprises: (MCLR + SP) + Bank Load

MUDRA Loan Interest Rate on an amount above Rs. 2 Lakhs upto Rs. 10 Lakhs:

  • For Micro Enterprises: (MCLR + SP) + Bank Load
  • For Small Enterprises: (MCLR + SP) + Bank Load

The different banks apply different interest rate on MUDRA Loan.

How can apply for Pradhan Mantri MUDRA Yojana or MUDRA Scheme

The MUDRA Loan or the MUDRA Scheme can be borrowed by the list of given individuals:

  • Small and Micro Manufacturing Business owners.
  • The Fruits & Vegetable Sellers.
  • The Shopkeepers
  • The Artisans
  • Individuals associated with the agricultural activities like dairy, livestock, poultry, pisciculture, fishery and many others.

How to apply for MUDRA Scheme/ MUDRA Loan at a Bank?

An individual can apply for the MUDRA Loan by following the steps which are as follows:

  • Individual should have necessary documents like Aadhaar Card, PAN Card, Voter ID, Driving License as a identity proof and electricity bill, gas bill, telephone bill, water bill, etc. for address proof and business registration certificate, etc. for the proof of business.
  • Then visit at the nearest bank where you can apply for MUDRA Loan.
  • Take MUDRA Loan Application Form from them and fill it very carefully and is there is confusion then ask the person available over there.
  • Now attached the documents with it and submit it in that bank.

Individual can also apply for the MUDRA Loan or the PMMY MUDRA LOAN online by visiting at their official website.

Important FAQs:

Ques 1: Can I apply for MUDRA Loan online?

Ans: Yes, you can apply for MUDRA Loan online by visiting at www.mudra.org.in.

 

Ques 2: What is MUDRA Card?

Ans: The MUDRA Card is a RuPay Debit Card that can be use for cash credit arrangement.

Ques 3: What is the normal repayment of the MUDRA Loan?

Ans: The normal repayment or the normal term of repayment is 12 months to 60 months.

Ques 4: How much time required in processing of MUDRA Loan?

Ans: Normally, it will take 24 hours for processing of MUDRA Loan.

 

Ques 5: Is it necessary to have CIBIL Score for MUDRA Loan?

Ans: No, it is not necessary to have CIBIL Score for MUDRA Loan.

 

Ques 6: Which is best MUDRA Loan scheme is required for startups?

Ans: The Shishu MUDRA Loan is the best scheme for startups of any business.

How to get Mudra Loan to start your business

Mudra loan is one of the powerful platform where any body can apply to do their own startup