Mudra loan scheme means Micro Units Development & Refinance Agency Ltd. Scheme. Mudra loan is offered to non-farming and micro and small enterprises (non-corporate) by the Pradhan Mantri Mudra Yojana (PMMY). All the said enterprises can avail a business loan of up to INR 10 lakhs under the mudra loan scheme.
This scheme was launched by Prime Minister Narendra Modi on April 8, 2015. All the loans are classified as Mudra loans under PMMY. Loans under this scheme are offered by various lenders including NBFCs and banks. The borrowers can also apply for this scheme through the Mudra website.
What are the Different Mudra Loan Schemes?
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The different mudra yojana loan schemes include three different products Shishu, Kishore, and Tarun. Their details include:
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Shishu: Under the Shishu loan scheme, the business owners can avail a loan for the business of up to INR 50,000. This loan can be availed only for businesses which are either at its initial stages of business or at starting.
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Kishor: Kishor loan scheme offers loans of up to INR 5 lakhs. Entrepreneurs who are looking for additional funds for business expansion can avail this scheme.
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Tarun: The Tarun loan scheme offers business loans of up to INR 10 lakhs. To avail this loan, they have to meet certain eligibility criteria.
What is Mudra Loan Eligibility?
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According to eligibility details for loan, the following businesses can avail PMMY:
- Small manufacturers
- Artisans
- Shopkeepers
- Fruit & vegetable dealers
- And individuals engaged in the agricultural sector- poultry, livestock, pisciculture, etc.
In addition, the above mentioned businesses must provide a report mentioning their revenue- it is a part of their eligibility.
What are Mudra Loan Documents?
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The mudra loan documents for every loan product under Pradhan mantra mudra yojana are different. The following are the documents requirement:
Checklist for Shishu:
- Quotations for machinery and other items need to be purchased.
- Details and information of the machinery to be purchased.
- Details of the machinery supplier.
Checklist for Kishor
- Account statement for the last 6 months.
- Balance sheet for at least last 2 years.
- Sales/Income tax returns.
- Balance sheet (estimated) for the duration of the business loan or for at least 1 year.
- Articles and Memorandum of association.
- Sales in the current Financial Year.
- Economic and technical viability report of the business.
Tarun Checklist
- Same as Kishor.
- Certificate of ST, SC, IBC, etc.
- Address proof.
- Identity proof.
How to get Mudra Loan?
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Any MSME owner can apply for Mudra loan online. If you are currently running a business and want to take it further, then you can apply for Pradhan Mantri Mudra Yojana. To apply for loan, you can visit any bank associated with PMMY. Fill the mudra loan application form and submit the documents.
Notably, the mudra loan interest rate differs from one bank to another. If your loan application is approved, you will get funds.