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Are you an entrepreneur struggling to raise capital for a startup? If yes, Pradhan Mantri MUDRA Yojana (PMMY) may just be the answer to your prayers. Scroll down to learn about the MUDRA loan, its eligibility and all the other details.
MUDRA Yojana is a Government of India-initiated loan scheme that offers a loan amount of up to ₹ 10 lakh to individuals and micro, small, medium enterprises (MSMEs). They can use this loan amount for launching or boosting their business.
If you are eager to find out more about the MUDRA loan scheme, its features, eligibility and benefits, we’ve got you covered. Go through all the details carefully before application.
Pradhan Mantri MUDRA Yojana, or PMMY, was launched by the Government of India in 2015 with the objective to offer financial support to small businesses, whether they are from profit or non-profit sectors. They can avail of a loan of up to ₹10 lakh to either set up or expand their businesses. And the best part is that they don’t have to submit any security or collateral for it.
MUDRA Card is a debit card issued when one avails the MUDRA Loan. Anyone who has this card can use it to make withdrawals and credits. Let’s check out some of its features and benefits below:
With the dual aim of income and employment generation, a MUDRA loan acts as multiple forms of financial support.
The following kinds of companies can avail of a loan under the Pradhan Mantri MUDRA Yojana:
The types of industries that can apply for a loan under PMMY are:
If you’re not sure whether Pradhan Mantri MUDRA Yojana is right for you, check out its list of benefits below:
The MUDRA Loan is divided into three different categories, each having its own range for businesses to avail of. The categories include:
You can download the application form from MUDRA.org.in. Make sure you fill in all the essential details in a specific format. Since the application procedure differs from bank to bank, you may have to visit your nearest branch to learn more about MUDRA loan details. Complete the bank’s formalities and submit your application form only after filling it.
Given below is the list of standard documents required for the MUDRA loan application.
For MUDRA loan eligibility, there is a minimum age limit of 18 years and a maximum age limit of 65 years for its application. This loan scheme can be availed by businesses that belong to the non-farm income-generating category in trading, services and manufacturing. They can request a credit of ₹10 lakh or less.
Various businesses come under the MUDRA loan scheme to perform income-generating activities. These include:
As directed by RBI, the following banks and financial institutions are offering loans under the MUDRA scheme:
|Axis Bank||Indian Bank|
|Oriental Bank of Commerce|
|CitiBank||Karur Vysya Bank|
|Bajaj Finserv||Karnataka Bank|
|IDBI Bank||YES Bank|
|Bank of Baroda||Kotak Mahindra Bank|
|ICICI Bank||Bank of India|
|Lendingkart Finance||Bank of Maharashtra|
|Punjab National Bank||Canara Bank|
|Saraswat Bank||Central Bank of India|
|State Bank of India||HDFC Bank|
|Syndicate Bank||Tata Capital|
|IDFC First Bank||Union Bank of India|
Note: Apart from the names mentioned in the list, there are many other banks and financial institutions that offer MUDRA loans to individuals and businesses. So, don’t worry if your preferred bank is not on this list. We suggest approaching the bank via call or in-person to find out more.
The interest rates for the MUDRA Loan ranges from 11% - 37%. Check out what your nearby bank offers before applying for it.
Anyone who has a small business or wishes to start a business is eligible to apply for a MUDRA loan. It is given under three categories - Shishu, Kishor and Tarun - all of which cover different ranges of loan.
Both commercial and regional banks offer the MUDRA loan whilst having their own rules and regulations. Make sure you acquire all the information before applying for it.
To apply for a MUDRA or Pradhan Mantri MUDRA Yojana, you need to keep all your documents ready. This includes your Aadhaar, Voter ID, PAN Card, etc. Get in touch with a bank, fill out the MUDRA Loan application form with all essential details and submit it.
MUDRA or Micro Units Development and Refinance Agency is a government-based loan scheme. It offers loans up to ₹10 lakh to non-farm/non-corporate small and medium enterprises.
Under the MUDRA scheme, the maximum loan amount offered is ₹10 lakh with a repayment period of up to 5 years. Applicants are not required to submit any collateral/security or third-party guarantee to apply for a MUDRA loan.
Yes, it is mandatory to submit ITR documents to avail the MUDRA loan. It is essential to submit two years of ITRs (Income Tax Returns) as proof for those eligible.
No, the CIBIL score does not have a role in the MUDRA loan.
Yes, a PAN Card is one of the essential documents you need to have to avail yourself of the MUDRA Loan.