Mudra Loans

Pradhan Mantri Mudra Yojana Loan (Mudra Bank Loan):

The Pradhan Mantri Mudra Loan Yojana (PMMY) is designed to fund the micro and small businesses / firms in India which are in looking for for monetary aid for startup business or establishment or expansion of their existing business. The scheme has been restricted for micro and small business / firms only. Business / Firm should fall under MSME Category like Micro, Small and Medium Enterprise. So, keep your business / firm Udyog Aadhaar Registrtion Ready before you apply for Mudra Yojana Loan.

Documents Required for Mudra Loans:

  • Applicant must be Indian, Applicant must be 18 Years Old. Applicant should have Business Plan to show while applying for Startup Mudra Loan (Shishu Mura Loan).
  • Self Attested Applicant ID Proof Like Voter’s ID card / Driving License / PAN Card / Aadhar Card / Passport.
  • Self Attested Applicant Residence Proof like Recent Telephone Bill, Electricity Bill, Property Tax Paid Receipt (not older than 2 months), Voter’s ID Card, Aadhar Card,  Passport of Proprietor / Partners / Director(s).
  • Applicant Social Status Proof like SC / ST / OBC / Minority (if any).
  • Business Proof Identity Document & Address Proof of the Business / Firm / Enterprise e.g relevant business / firm licenses like company / business registration certificates / other documents pertaining to the ownership, identity and address of business unit.
  • If your business / firm is a rented one, you need to provide the copy of rental agreement.
  • If you have purchased any machinery or any item that you require for your business / firm then you should to provide those machinary quotation or invoice of machinary alredy purchased.
  • If you have already purchased any machinery or item for your business then you need to provide:
  1. Supplier’s Name
  2.  Machinery Details
  3.  Machinery Price etc.
  • You need to disclose your business / firm assets and also if you have any business liabilities (i.e. if applicable)
  • Applicant should not be defaulter in any Bank / Financial Institution.
  • Statement of Bank Account(s) (for the last six months bank statment), from the existing banker.
  • Last two years balance sheets of the units along with income tax / sales tax return etc. (Applicable for all loan requirment cases from Rs. 2 Lacs and above).
  • Projected balance sheet for one year in case of working capital limits and for the period of the loan in case of Term Loan (Applicable for all cases from Rs.2 Lacs and above).
  • Sales achieved Report during the current financial year up to the date of submission of application.
  • Project report (for the proposed project) containing details of technical & economic viability.
  • Memorandum (MOA), Company Incorporation and articles of association (AOA) of the company / Partnership Deed of Partnership Firm.
  • In absence of third party guarantee for the loan amount, Asset & Liability Statement from the borrower including Proprieter, Director(s) & Partners may be sought to know the net-worth.
  • Two Recent Passport Photographs (color) of Proprietor / Partners / Director(s).

Pradhan Mantri Mudra Yojana (Mudra Bank Loan) Eligibility Criteria :

  • Shishu – Loans up to a maximum of Rs. 50,000, Eligible for Startup Businesses Only. Loan Term up to 5 Years,
  • Kishore – Loans exceeding Rs. 50,000 up to INR 5 Lakhs. For the Businesses / Firms those have already started Business but need financial aid for establishing.
  • Tarun – Loans exceeding Rs. 5 Lakhs up to Rs. 10 Lakhs. Only for the Business / Firms those already established but looking for funds for business expansion.

Pradhan Mantri Mudra Yojana / Mudra Loan Interest Rates  :

  • Each banks have a different Interest rate for providing mudra loans. Loan Interest Rate also may depends on the person or business that applies for loan. If loan applicant have a good loan history then those applicants will get loan at a better interest rates.
  • The yearly rate of interest that will be charged by banks or lenders will be in the range of 9.65% to 24%.
  • You may contact Bank / Non Banking Finalcial Institutions / Micro Financing Institutions (MFI) which are offering Mudra Loans for exact rate of interest which they offer Mudra Loans. Rate of Interest will be vary from bank to bank and also applicant previous loan histrory / existing loan(s) repayment track.

Banks / NBFI / MFIs under Pradhan Mantri Mudra Yojana (PMMY) Loan Scheme:

  • Total 27 public sector banks, 31 Regional Rural Banks, 17 Private Sector Banks, 36 Microfinance Institutions, 4 co-operative Banks, 25 Non-Banking Financial Instructions are presently selected to allow this mudra loan scheme.

 

Keywords / Help :

  • MUDRA (Micro Units Development and Refinance Agency)
  • NBFI - Non-Banking Financial Insitution
  • NBFC - Non-Banking Financial Company
  • MFI - Micro Financing Institutions