Mudra Loan: Procedure & Eligibility (Complete Guide)

Mudra Loan: Procedure & Eligibility

Mudra Loan – Pradhan Mantri Mudra Yojana (PMMY):- If you want to start your own business Or you want to grow your current business.

You on the right page!

Hello, friends welcome to another fresh article of “Wealthsetup.com”, Here in this article I explained how to apply for Mudra Loan online/offline.

I will also explain the document requirement and eligibility.

To start a new business or grow your current business you need a fund.

So, In this condition to fulfill your financial condition, you have to apply for a loan from the bank.

But you need to face a lot of problems in taking loans from the bank due to this problem many people are unable to take a loan from the bank.

And a lot of people don’t want to take a loan from the bank because there is also a need for collateral.

So keeping these things in mind, our government introduced Pradhan Mantri Mudra Yojana.

Even the smallest business can avail of a business loan of up to Rs 10 lakh under the Pradhan Mantri mudra yojana.

So, Here in this article, we will discuss all the below points one by one.

  • What are the benefits?
  • Documents requirements?
  • Who can avail?
  • Which Banks are providing this facility?
  • What is the rate of Interest?
  • How to apply?

This information will help you to avail the loan without any issue.

Also Read:- What Is CIBIL Score? | CIBIL Score On WhatsApp.

The Benefits Of Loan Under PMMY.

Benefits Of Loan Under PMMY.

First of all, we discuss the benefits of the loan under the Pradhan Mantri Mudra Yojana,

There is too many benefits of PMMY.

But the here we will discuss main benefits of PMMY.

The first benefit of PMMY loan is that there is no minimum loan amount.

You can take Rs.10000, Rs.20000, Rs.50000 or you can take a maximum loan of up to 10 lakh rupees.

The second benefit, If you take a business loan from a bank, then you need to provide collateral or security.

But if you take the same loan under a Pradhan Mantri Mudra Yojana then no need to provide any collateral or security.

The third benefit is you no need to pay any processing charges when avail loan under PMMY.

The fourth benefit is under PMMY any small business can avail loan and start or grow your business.

The fifth benefit is the loan amount you can use for any other purpose also.

These some major benefits which you must know.

Now let’s discuss what are the documents required to get a loan under Pradhan Mantri Mudra Yojana.

Documents Required For Mudra Loan?

Documents Required For Mudra Loan?

As you all know if you want to get a loan from any bank you need to provide some documents to the bank.

Let’s check what are the documents you need to provide to get the loan under Pradhan Mantri Mudra Yojana.

First you need to provide your identity proof Like:-

  • Aadhar card
  • PAN card
  • Voter ID Card
  • Passport
  • Driving License

Second you need to provide resident proof Like:-

  • Aadhar card
  • Voter Id card
  • Ration card
  • Telephone Bill
  • Any other Utility Bill
  • Bank Statement

If you are already doing business and want to take a loan to grow your business.

Then you need to provide the identity of your business address proof & license of your business.

As address proof of business, you can give a rent agreement for the business.

As a license of your business, you can give your business PAN card.

If you want to take a higher amount of loan you need to explain your business plan.

When you are filling the form for loan transactions there you need 2 recent passport size photos.

So, please carry all these basic documents with you when you applying for Mudra Loan.

Who Can Avail ?

Who Can Avail Loan Under Pradhan Mantri Mudra Yojana?

The most important question is who can avail loan under Pradhan Mantri Mudra Yojana.

The answer is anybody can avail loan who wants to start a new business or grow an existing business.

Like:-

  • Existing business owners.
  • Shopkeepers.
  • Startup entrepreneurs.
  • Any small Industrialist.
  • Manufactures etc.

It’s mean any small businessman can avail loan under Pradhan Mantri Mudra Yojana.

Now you understand the benefits and document requirements to avail loan.

You are now aware of who can avail of this loan, now it’s time to check from where you can get these loans.

Where You Can Take Loan?

Where You Can Take Mudra loan?

Our government allows you to get a loan from any public or private sector banks.

Like:-

  • Public Sector Bank.
  • Private Sector Banks.
  • Regional Rural Banks.
  • Small Finance Banks.
  • NBFCs (Non-Banking Finance Company)

Here below I mentioned some examples of Public Sector Bank, Private Sector Banks, Regional Rural Banks, Or Smal Finance Banks, and NBFCs.

Examples of Public Sector Banks:-

  • ALLAHABAD BANK
  • BANK OF BARODA
  • ANDHRA BANK
  • CANARA BANK
  • BANK OF INDIA
  • BANK OF MAHARASHTRA etc…

Examples of Private Sector Banks:-

  • Axis Bank Development Credit Bank (DCB Bank Ltd)
  • HDFC Bank
  • ICICI Bank
  • IndusInd Bank
  • Kotak Mahindra Bank
  • Yes Bank
  • IDFC
  • Bandhan Bank of Bandhan Financial, etc…

Examples of Regional Rural Banks Or, RRBs:-

  • Allahabad UP Gramin Bank
  • Andhra Pradesh Grameena Vikas Bank
  • Andhra Pragathi Grameena Bank
  • Arunachal Pradesh Rural Bank
  • Assam Gramin Vikash Bank
  • Bangiya Gramin Vikash Bank, etc…

Examples of NBFCs:-

  • Power Finance Corporation Limited.
  • Shriram Transport Finance Company Limited.
  • Bajaj Finance Limited.
  • Muthoot Finance Ltd., etc…

These are the option from where you can take a loan under Pradhan Mantri Mudra Yojana.

You can choose any bank from above list to avail this loan.

Types Of Loan under PMMY

Types Of Mudra Loan.

Before applying for a Mudra loan you should decide which type of loan you want to take.

There are 3 types of Mudra loans:-

  • Shishu.
  • Kishore.
  • Tarun.

Shishu Mudra Loan:- Under this type of loan, you can take a maximum loan of up to Rs.50,000. This loan is mainly for startups, who want to start a business.

Kishore Mudra Loan:- Under this type of loan, you can take a loan of up to Rs.50,000 – Rs.5 lakhs.

Tarun Mudra loan:- Under this type of loan, you can take a loan ranging from Rs.5 lakh to Rs.10 lakh.

Kishore and Tarun loan are for both type-wise people, Those who are already doing business and want to grow their business.

Rate Of Interest

Rate Of Interest For Loan Under PMMY.

Now it’s time to check how much interest you need to pay on Mudra Loan.

The overall interest rate on loan under Pradhan Mantri Mudra Yojana is 12% P.A.

But Interest will be decided according to your business plan.

Interest decided according to how much risk is involving in your business plan and all the banks have different interest rates.

So it is very important for you when you plan to take a loan under Pradhan Mantri Mudra Yojana.

You need to visit all the banks how much you can visit and need to compare the interest rates which low.

Which bank will give you less interest rate you can get a loan from that bank.

The interest rate for the Shishu loan, Kishore loan, Tarun loan will be the same for all types of loan.

Now let’s check how to apply for loan under Pradhan Mantri Mudra Yojana.

How To Apply For Mudra Loan

How To Apply For Mudra Loan?

Here now we will check how to apply for a loan If you want to take a loan under Pradhan Mantri Mudra Yojana.

You just have to visit the bank or any financial institution from where you want to take a loan.

After the visit, you have to tell them you want to take a business loan under Pradhan Mantri Mudra Yojana.

They will give you an application form, you can also download the form from the bank website.

You have to fill the form and submit the same at the bank along with supporting documents that I have already mentioned in this article.

All the supporting documents must be self-attested by your self.

You also need to keep original documents with you.

Bank will take one to two days to verify your documents, business plan, and your CIBIL score.

If your CIBIL score and all other documents are correct then the bank will approve your loan.

After approval once again you have to visit the bank to open a Mudra account with the same bank.

I hope this article will help you to know how to get a Mudra loan to start or grow a business. If anyone has any queries or suggestions regarding Pradhan Mantri Mudra Yojana then please ask in the comment box.

Gashik

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