In last article, we discussed about MUDRA loan, eligibility, interest rates, documents, security etc. Now we received a query from one of the readers that how to get mudra loan and what is the application process to get MUDRA loan for business. Mudra Loans are disbursed under three categories viz. Shishu (upto Rs.50000/-), Kishore (Rs.50000/- to Rs. 5 Lakh), Tarun (Rs. 5 lakh to Rs. 10 lakh). These categories of mudra loan signify the different stages of growth and funding requirement of micro units or businesses.
How to Get MUDRA Loan – PMMY Loan | Documentation and Application Process in Detail
Pradhan Mantri Mudra Yojana (PMMY) helps small businessmen who have the potential and ability to grow their business but due to lack of financial support, they end winding up the business. Therefore, mudra loan helps these small businesses in critical time when they need financial support to absorb unexpected shocks and remain viable. Pradhan Mantri Mudra Yojana (PMMY) continues to be a major initiative of the Government of India providing credit to millions of unfunded micro units in the country. The programme has benefited 12.27 crore loan accounts with a sanction of nearly 5.71 lakh crore in the last three years.
How to Get Mudra Loan – Documentation
To get mudra loan, first of all you need to identify banks or financial institution providing mudra loan. You can personally visit bank branch or go to bank website to get information about documentation to get mudra loan. Also check for eligiblity criteria to get mudra loan. Mudra loan is extended for a variety of purposes which provides income generation and employment creation in Manufacturing, Services, Retail and Agri. Allied Activities.
If you fulfill the eligibility criteria, then fill in the mudra loan application form along with requisite documents and submit to bank branch or financial institution where you want to apply for mudra loan.
However, here are some general documents which are required to get mudra loan :
- Mudra Loan Application Form
- Business Plan
- Proof of Identity (Aadhaar/PAN/Voter ID/Driving License/Passport etc.)
- Proof of Address (Telephone Bill/Electricity Bill or property tax receipt etc)
- Recent Photograph
- Quotation of Machinery or items to be purchased
- Name of Supplier or details of the machinery or prices of the machinery
- Proof of the Identity and Address of Business like the tax registration, business license and more
- Proof of category like SC/OBC/Minority, if applicable
Note :
- No Processing Fees
- No collateral
- Repayment period of loan is extended up to 5 years
- Applicant should not be defaulter of any Bank/ Financial Institution.
Download Mudra Loan Application Form
As you already know there are three categories of Mudra Loan :
Shishu – Loan upto ₹ 50,000/-
Kishor – Loan above ₹ 50,000 and below ₹ 5 Lakh
Tarun – Loan above ₹ 5 Lakh and below ₹ 10 Lakh.
Here you can download application form to apply for Mudra Loan :
Common Loan Application Form for Kishor and Tarun – Download
Application Form for Shishu – Download
How to get Mudra Loan – Stepwise Application Process
Here is step wise application process to get mudra loan.
Business Plan – Prepare a business plan that must be towards growth and innovation.
Documentation – Fill in the mudra loan application very carefuly along with business plan and requisite documents and submit to bank or FI.
Approach Bank / Financial Institutions – Visit Bank or financial institution offering mudra loan and submit your documents. If they find your business plan viable then they will process your loan application.
Loan Processing – Bank or financial institution will process the mudra loan application as per terms and conditions.
Loan Sanctioning – If you fulfill the eligibility criteria and norms, bank or financial insitution will sanction the loan and provide a mudra card.
Mudra Card
- MUDRA Card is a rupay debit card issued against working capital limit under PMMY.
- The borrower can make use of MUDRA Card in multiple withdrawals and credits, so as to manage the working capital limit in cost-efficient manner and keep the interest burden minimum.
MUDRA card sample - MUDRA Card also helps in digitalization of MUDRA transactions and creating credit history for the borrower.
- MUDRA Card can be operated across the country for withdrawal of cash from any ATM / micro ATM and also make payment through any ‘Point of Sale’ machines.
What is the Security / Collateral requirements to get mudra loan ?
“As per the recommendations of the Working Group constituted by RBI for reviewing the Credit Guarantee Schemes for Micro Small Enterprises and accepted by RBI, Banks have been mandated not to insist for collateral security in the case of loans upto 10 lakh extended to the units in the Micro Small Enterprises sector.”
Interest rate
Interest rates are to be charged as per the policy decision of the bank. However, the interest rate charged to ultimate borrowers shall be reasonable.
Tenure of Assistance
Tenure of PMMY MUDRA Loan depends on the purpose for which the loan was provided by the bank. If loan is given to fulfill working capital needs of business, then it is repayable on demand.
However, for term loan for all other business purpose, MUDRA loan has a tenure of 3 to 5 years.
Repayment
Term Loan : To be repaid in suitable installments with suitable moratorium period as per cash flow of the business.
OD & CC Limit : Repayable on demand. Renewal and Annual Review as per internal guidelines of the Bank.
Which banks are providing Mudra Loan ?
Mudra loan under PMMY is available at all bank branches across the country. Mudra loan is also issued by NBFCs / MFIs who are engaged in financing for micro enterprises in small business activities. MUDRA loan is available with various banks like SBI, PNB, Bank of Baroda, Canara Bank, Indian Bank, Bank of India, OBC, Union Bank of India, Allahabad Bank, Andhra Bank, HDFC, Axis Bank, ICICI Bank, etc. Here is the list of top 10 public and private sector banks providing mudra loan.
Mudra Loan Bank Wise Performance FY 2018-19 (as per disbursed amount)
|
Top 10 Public Sector Bank (Amount ₹ in Cr) |
|
| SBI | 33612.5 |
| Canara Bank | 9769.16 |
| Bank of India | 5892.44 |
| Bank of baroda | 5889.23 |
| PNB | 4964.27 |
| Union Bank of India | 3879.35 |
| OBC | 2990.19 |
| Allahabad | 2958.03 |
| Andhra Bank | 2740.67 |
| Syndicate Bank | 2503.93 |
|
Top 10 Private Sector Bank (Amount ₹ in Cr) |
|
| Bandhan Bank | 20913.48 |
| IndusInd Bank | 12093.5 |
| HDFC Bank | 7168.92 |
| ICICI Bank | 6531.74 |
| IDFC Bank Limited | 5427.77 |
| Axis Bank | 4048.59 |
| J & K Bank | 2569.41 |
| Yes Bank | 2047.25 |
| Kotak Mahindra Bank | 1059.69 |
| Ratnakar Bank | 831.35 |
Where to Complaint – Mudra Loan (Toll Free) Helpline, Complaint Numbers
If you face any difficulty in getting MUDRA loan, or any query. Find below the toll free helpline numbers, complaint numbers on which you can call anytime and file your complaint
- 1800 180 1111
- 1800 11 0001
