Mudra Loan

PM MUDRA Yojana (PMMY) is a scheme by the Government of India to help small businesses get affordable loans. The goal is to support micro enterprises in trading, making things, offering services, and even farming. The Micro Units Development and Refinance Agency (MUDRA) is like a bank that helps other banks and financial institutions provide these loans. If you're starting a small business, you can get a MUDRA loan of up to Rs 10 lakh from a bank or other similar places nearby. They also offer a MUDRA Card, which works like a credit card, for things like getting money from ATMs and buying stuff using card machines.

Interest Rates of MUDRA Loans

MUDRA doesn't decide the interest rates for PMMY loans. Instead, it lets banks, NBFCs, and MFIs choose the rates. So, if you want a MUDRA loan, just ask your bank or lender about their interest rates.

Fees & Charges

Lending institutions offering MUDRA loans can decide whether to charge upfront fees based on their own rules. But usually, for loans in the Shishu category, many lenders don't charge any upfront fees or processing charges.

Registration Process of PM MUDRA Yojana

Prospective borrowers seeking business loans can go to specific Public and Private Sector Commercial Banks, Cooperative Banks, Regional Rural Banks (RRBs), Micro Finance Institutions, Foreign Banks, and Non-Banking Finance Companies to access loans under PMMY.

Moreover, individuals have the option to apply for MUDRA loans conveniently online through the UdyamMitra portal at www.udyamimitra.in.

Loan Amount

MUDRA loans are divided into three categories: 'Shishu', 'Kishore', and 'Tarun'. These categories signify the development and funding requirements of applicants.

Collateral

The loans provided by MUDRA are collateral-free and are covered under the Credit Guarantee Fund for Micro Units (CGFMU), which is managed by the National Credit Guarantee Trustee Company Limited (NCGTC). This provides added security to both borrowers and lenders.

Repayment Tenure

MUDRA hasn't set a specific repayment tenure for loans refinanced through the PMMY scheme. Instead, lending institutions providing MUDRA loans have the flexibility to determine loan tenures according to their own policies and the regulations established by the RBI.

MUDRA Card

The MUDRA Card is a RuPay debit card that provides a working capital loan through an overdraft facility. This card allows borrowers to make multiple withdrawals and credits, facilitating digital transactions and building credit history. It's issued against a MUDRA loan account and can be used nationwide for cash withdrawals from ATMs/micro ATMs or for making purchases using Point of Sale (POS) machines. Borrowers can repay the amount at any time based on the availability of surplus cash.

Eligibility Criteria of PM MUDRA Loans

MUDRA loans are available for micro-enterprises engaged in manufacturing, services, processing, trading, and activities related to agriculture. Prospective borrowers must have a clean record and not be defaulters with any bank or financial institution. Additionally, they should demonstrate a satisfactory credit history.

Documents required for availing PM MUDRA Loans

Documentation for availing loan under Shishu Category

To apply for a loan under the Shishu category of the MUDRA Yojana, you'll need the following documents:

• Identity Proof: Self-attested copy of any of the following: Driving Licence, PAN Card, Voter’s ID Card, Aadhaar Card, Photo IDs issued by Government authority, Passport, etc.
• Residence Proof: Provide a self-attested copy of any of the following: Latest telephone bill, property tax receipt (not older than 2 months), Voter’s ID Card, Electricity Bill, Aadhar Card, Domicile Certificate, Passbook of proprietor or partners, or the latest bank account statement attested by bank officials, Passport, Certificate issued by local panchayat, government authority, or municipality, etc.
• Recent Photographs: Submit 2 copies of a recent photograph of the applicant, not older than 6 months.
• Quotation of Machinery or Items: Provide details such as the name of the supplier or price & details of machinery and/or items to be purchased.
• Proof of Identity and Address of the Business Enterprise: Submit copies of registration certificates, relevant licenses, or other documents related to the ownership, address, and identity of the business unit, if any.
• Proof of Category: If applicable, provide proof of category such as ST/SC/OBC/Minority, etc.

Ensure all documents are self-attested and up-to-date for a smooth loan application process under the Shishu category of the MUDRA Yojana.

Documentation for availing loan under Kishor and Tarun Category

To avail a loan under the Kishor and Tarun categories of the MUDRA Yojana, you'll need the following documents:

• Identity Proof: Self-certified copy of any of the following: Voter’s ID card, PAN Card, Aadhar Card, Driving License, Passport.
• Residence Proof: Provide any of the following documents (not older than 2 months): Latest telephone bill, Property tax receipt, Voter’s ID card, Electricity bill, Aadhaar Card, Passport of Proprietor/Partners/Directors.
• Proof of ST/SC/OBC/Minority: Provide relevant documentation if applicable.
• Identity/Address Proof of the Business Enterprise: Copies of registration certificates, relevant licenses, or other documents related to the identity, ownership, and address of the business unit.
• Account Statement: Submit the account statement of the last 6 months from the existing banker, if any.
• Financial Documents:
  • Balance sheet of the units of the last 2 years along with income tax or sales tax returns (Applicable for all cases from Rs. 2 lakhs and above).
  • Projected balance sheets of 1 year in case of working capital limits and for the loan duration in case of term loan (Applicable for all cases from Rs. 2 lakhs and above).
  • Sales achieved during the current Financial Year up to the date of submission of the application.
  • Project report for the proposed project with details of economic and technical viability.
• Legal Documents:
  • Articles and Memorandum of association or Partnership Deed of Partners/company, etc.
• Asset and Liability Statement: In the absence of third-party guarantee, an asset and liability statement from the applicant including directors and partners may be required to determine net worth.
• Photocopies: Provide 2 photocopies of Partners/Proprietor/Directors.

Ensure all documents are properly prepared and up-to-date for a successful loan application under the Kishor and Tarun categories of the MUDRA Yojana.