The Micro Units Development and Refinance Agency (MUDRA) Loan Scheme under PMMY, or Pradhan Mantri Mudra Yojana, is a government initiative that provides loans to individuals and MSMEs through banks and NBFCs.
MUDRA Yojana is available in three loan schemes: Shishu, Kishor, and Tarun. Loans under the Mudra scheme are collateral/security-free loans made available by financial institutions with repayment terms ranging from 12 months to 5 years and flexible EMIs.
The following is a list of documents required for Mudra loan:
Mudra application form (PDF format) duly completed with passport-sized photographs
Passport, Voter ID card, Driving License, PAN card, Adhaar Card, Utility Bills (Water/Electricity Bills), Birth certificate, Class X certificate are all required KYC documents for the applicant.
Income documentation: a bank statement from the previous 12 months
If applicable, the ITR from the previous year
Proof of eligibility for the SC/ST/OBC categories, if applicable
Any other documents that the bank may require
Individuals and MSMEs are offered Micro Units Development and Refinance Agency (MUDRA) loans by permitted and eligible financial institutions directed by the RBI, such as public and private sector banks, Non-banking Financial Companies (NBFCs), Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), Co-operative Banks, and Regional Rural Banks (RRBs).
The Mudra scheme was launched by the Government of India under the Pradhan Mantri Swasthya Bima Yojana. Mudra Yojana (PMMY) to support individuals, startups, new and existing businesses, and MSMEs, as well as to promote the MSME sector in India.
The following documents are required for a vehicle loan under Pradhan Mantri MUDRA Yojana (PMMY):
Mudra Yojana application form duly completed
Application for a Vehicle Loan
two passport-sized photographs of the applicant
Aadhaar Card, Passport, Voter ID Card, Driving License, and other forms of identification are acceptable.
Aadhaar card, passport, bank statements, phone or electricity bills are examples of address proof.
Proof of income
Bank statement for the previous six months
The following documents are required for a business installment loan under Pradhan Mantri MUDRA Yojana (PMMY):
Mudra Yojana application form duly completed
Application for a Loan
two passport-sized photographs of the applicant
Aadhaar Card, Passport, Voter ID Card, Driving License, and other forms of identification are acceptable.
Proof of residential address, such as an Aadhaar card, a passport, bank statements, or a telephone or electricity bill
Evidence of ownership of the business or residence
Proof of qualification, establishment, and continuity of business
References from the trade
Financials certified by CA and ITR for two years
Bank statement for the previous six months
The following documents are required for a business loan under Pradhan Mantri MUDRA Yojana (PMMY):
Mudra Yojana application form duly completed
Application for a Loan
Aadhaar Card, Passport, Voter ID Card, Driving License, and other forms of identification and proof of age are accepted.
Proof of residential address, such as an Aadhaar card, a passport, bank statements, or a telephone or electricity bill
Evidence of ownership of the business or residence
Proof of qualification, establishment, and continuity of business
Evidence of business continuity
Bank statement from the previous 12 months
Income tax returns for the previous two years
Mudra loan is available to the following entities:
Individuals and small and medium-sized businesses
Artists, Traders, Retailers, and Manufacturers
Sole proprietorships, partnership firms, and limited liability partnerships (LLPs) are limited to the trading, manufacturing, and service sectors.
Micro and Small Manufacturing Units
Units of Small Scale Industry (SSI)
The various types of Mudra loan products are listed below, based on the stage of development of the business and the varying business requirements.
Shishu: This loan product is available to small businesses that require funding to launch their venture. They can receive up to 50,000 to purchase raw materials or equipment for their business.
Kishore: Under the Mudra Scheme, this loan product is aimed at enterprises that have completed the process of establishing a business and require funds to expand it. They can get mudra loans ranging from 50,000 to 5 lakh for their business.
Tarun: This Mudra loan category is available for businesses that have established themselves and require funds for further growth and diversification. The funds are available for loans ranging from 5 Lakh to 10 Lakh.
The minimum age requirement is 18 years old, and the maximum age limit is 65 years old.
Interest rates differ from one bank to the next.
Rs. 30,000 is the minimum loan amount.
The maximum loan amount is Rs. 10 lakh.
No collateral or security is required.
There is no processing fee.
The tenure of repayment is up to 5 years.
Applicants who have never had a loan default in the past will be considered.
The government has finally integrated small micro-units into the formal credit system with the introduction of the Mudra Yojana. The unbanked population, which was previously hampered by a lack of funds, is now able to meet their basic needs.
The true India can be found in such micro and small units. As a result, the development of these units is a true indicator of economic transformation, and Mudra Yojana is doing an excellent job of it.
Ans: Yes, businesses must submit their most recent two years' worth of income tax returns in order to qualify for a Mudra loan.
Ans: To apply for a Kishore Mudra Loan, you must submit an application form along with documents proving your identity, address, income, and business existence, as well as additional documents proving your SC/ST/Minority status, if applicable.
Ans: Aadhaar Card, Passport, Voter ID Card, and Driving License can be used as identity and age proof documents in Mudra Loan.
Ans: You do not need to provide any collateral or third-party security to obtain a Mudra Loan.
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