What is Mudra Loan?
MUDRA is a revolutionary scheme launched by the Government of India under the banner of PMMY (Pradhan Mantri Mudra Yojana). This scheme was inaugurated by the Prime Minister Shri Narendra Modi on April 8, 2015. Mudra Loan is aimed to cater the non-farm small firms and non-corporate enterprises by providing them loan up to 10 Lakh Rupees. Only the microenterprises can avail Mudra Loan Eligibility. Moreover, Mudra Loan also strives to become an integrated capital support for the aforementioned enterprises and give them top-notch and reliable business aid aimed at overall development. Furthermore, Mudra Loan also focuses on developing a sustainable environment for the entrepreneurs with the help of allied institutions. In the bigger picture, the mission of the Mudra Loan is providing a platform in which the domain of micro-enterprises could flourish at a good rate.
The Mudra Loan is categorized into 3 kinds on the basis of loan amount:
- Shishu Loan (Up to 50,000 Rupees)
- Kishore Loan (From 50,000 to 5 Lakh Rupees)
- Tarun Loan (From 5 Lakh to 10 Lakh Rupees)
Mudra Loan Eligibility
Mudra Loan was launched in the Financial Year 2015-2016 for the upliftment of the Non-Corporate Small Business Sector (NCSBS). It stands at the second position in employment count by employing around 10 Crore people (the first one being agriculture). Micro businesses such as small-scale shopkeepers, vendors, taxi operators, artisans and others qualify for the Mudra Loan Eligibility.
The eligibility conditions for availing Mudra Loan are given below:
- The applicant must own an enterprise apart from farming
- The application should be in context of an individual or a small unit
- The maximum credit requirement must be 10 Lakh Rupees
- Another important condition for Mudra Loan Eligibility is that the applicant should not have any past defaulter history or ongoing loans.
Documents needed for Mudra Loan Application
Here is the list of Mudra Loan Documents in order to avail the Mudra Loan:
- ID Proof: Any identity proof issued by the government such as Aadhar Card or Passport
- Proof of Residence: Aadhar Card, Tax Receipt, Electricity Bill etc.
- Category Proof: SC/ST or OBC Certificate (if any)
- Bank Statement: Last Six Months
- Quotation: Quotation regarding the loan amount and other capital estimations
- Business Documents: Such as agreement of lease or rent
- Photograph: Two recent photographs (not old than 6 months)
(Mudra Loan Documents especially needed for Kishore and Tarun Loan):
- Asset Statement
- Partnership Deed
Application form for Mudra Loan
Most of the major banks except applications for Mudra Loan (which includes Kishor loan, Tarun loan and Sishu Loan)
Download the Application form and other details from the (Pradhan Mantri Mudra Yojana) link: Click here for PMMY Kit