Types of Mudra Loan
The borrowers can apply for MUDRA loan online under the following three categories:
Shishu Loan: Under the SHISHU loan scheme, the entrepreneurs can avail a loan up to Rs. 50,000. This scheme is for business owners who are either at the initial stage of their business or want to start one.
Kishor Loan: Under the Kishor MUDRA loan scheme, the business owner can avail a business loan of up to Rs. 5 lakhs. This scheme is for borrowers who are looking for additional funds to expand their business operations.
Tarun Loan: Tarun loan is the third type of scheme under the Pradhan Mantri MUDRA loan arrangement. Under this scheme, the borrower can avail a loan of up to Rs. 10 lakhs for his business.
Mudra Loan Eligibility
The MUDRA loan eligibility is as follows:
- The borrowers should be an Indian citizen.
- The loan requirement should not range more than Rs. 10 lakhs.
- The enterprises generating income from farming activities, cannot apply for MUDRA loan.
- Small enterprises in rural, as well as urban areas, can apply for PPMY (Pradhan Mantri Loan Yojana).
How to Apply for Mudra Loan?
The applicant can fill the Pradhan Mantri MUDRA yojana application form from any of the banks listed under the scheme. Notably, 29 banks are listed under the scheme. The following are the steps how to apply for MUDRA loan yojna:
- Visit the nearest bank listed under the scheme.
- Present the business plan or idea.
- Submit the duly filled MUDRA loan application form.
- Provide additional documents, such as identity and address proof, company address proof, balance sheets, caste certificate, IT returns, sales tax, etc.
- Complete all other formalities of the bank.
- The documents submitted, along with the MUDRA loan application, will be verified.
- If the borrower meets all the formalities, the loan will be sanctioned.
Mudra Loan Online Application
Interested borrowers can also apply for the MUDRA loan online by simply visiting the official website of the 29 banks; the business loan application forms are available online. The following are the steps to apply for Pradhan Mantri MUDRA Yojana:
Step 1: Download the MUDRA loan application form.
Step 2: Dduly fill the application form with relevant and correct information.
Step 3: Find the public or private bank.
Step 4: Finish the formalities.
Step 5: Once the borrower completes this process, the loan will be sanctioned.
Mudra Loan FAQs
What is MUDRA loan scheme?
MUDRA loan scheme is an initiative by the government to provide financial assistance to the micro and small enterprises. It is a refinancing scheme for SMEs through intermediaries, such as co-operative societies, banks, and others who are listed with the scheme.
How can I get a Mudra loan?
You can avail MUDRA loan by visiting any of the bank branches listed with the MUDRA scheme. Or you can also visit their website, fill the loan application form, and provide the required documents for MUDRA loan to get your application sanctioned.
What is the interest rate of Mudra loan?
The MUDRA loan interest rate differs from one bank to another. It starts at 8%.
Who is eligible for Mudra loan?
Anyone who is an Indian resident and is running a small business can apply for MUDRA loan. He can avail loan under three categories, Shishu, Kishor, and Tarun loan that covers loan amount up to Rs. 50,000, Rs. 5,00,000, and Rs. 10,00,000, respectively.
Is there any age limit for Mudra loan?
To avail PM MUDRA loan, the applicant should be between 23 to 28 years of age during the sanctioning of the loan. Also, he should not be more than 65 years of age at the time of maturity of the loan.
Can I apply for MUDRA loan online?
Yes, you can apply for MUDRA loan online. You need to visit the website of the bank offering loans under PMMY. Then, download and fill the MUDRA loan application form and finish the formalities by submitting the required documents.
Can a salaried person apply for Mudra loan?
MSME (Micro, Small and Medium Enterprises) owners can apply for a MUDRA loan up to Rs. 10 lakh. If the salaried person is running a business as well, he can avail the facility of MUDRA loan.
Can women apply for Mudra Loan?
Under the Mudra Loan for women, aspiring female entrepreneurs can avail funds of up to Rs.10 lakh to start a small or micro-enterprise, provided it is a non-corporate or a non-farm business.