Introduction

Pradhan Mantri MUDRA Yojana is a prominent loan facilitation started by Prime Minister Narendra Modi. This scheme aims to provide loans up to Rupees 10,00,000 to emerging businesses, which are categorized as non-corporate, non-farm associated small/micro enterprises. 

Partners of the Mudra Yojana

This scheme has around 194 partners, which include Private, Public, and Rural sector banks, Microfinance Banks, NBFC, RRBs, and many more institutions. It is rest assured that the Mudra Loan prides itself on earnest and growth-oriented strides. 

Who can apply for the Mudra Loan?

The Mudra Yojana is open to any individuals, private businesses, sole proprietors, or any eligible business that has a requirement of a loan up to Rupees 10,00,000 (Rupees Ten Lakhs). 

It is essential to remember that the Mudra Yojana welcomes any Indian citizen with a business model and plan, fit for income generation. The said model should aim at forming a new Micro business or boosting an already existing one. The sectors that Mudra Yojana is indispensable for are manufacturing, trading, processing, and service. 

Products under the Mudra Yojana

The three primary products are named after the process of growth and development. You can consider and assess them according to the needs of your business, which are as follows:

  1. Shishu Loan- The Shishu Mudra Loan covers loans up to Rupees 50,000 (Rupees Fifty Thousand)

  2. Kishore Loan- The Kishore Mudra Loan covers loans above Rupees 50,000 (Rupees Fifty Thousand) and up to Rupees 5,00,000 (Rupees Five Lakhs)

  3. Tarun Loan- The Tarun Mudra Loan covers loans above Rupees 5,00,000 (Rupees Five Lakhs) and up to Rupees 10,00,000 (Rupees Ten Lakhs)

Why Mudra Loan?

Unlike most schemes, Mudra Yojana provides its customers with the following:

  1. It is the ultimate refinance for last-minute financiers, owing to its extensive roster of lending establishments, the accessibility makes the process of applying for the Mudra Loan easy and sustainable. 

  2. It provides loans at low rates of interest on its schemes, under the RBI guidelines. In addition to this, its no collaterals policy brings transparency to the process. 

  3. Applying for a Mudra Loan creates a sense of ease and security for its users, due to its direct association and endorsement with the government of India.

  4. The Mudra Yojana is vigilant and assertive in their methods of working, as a result, they showcase Overall, State, and Bank performances. The yearly performance reports exhibit potential for prospective customers. 

  5. The funds can be easily accounted for by showcasing the Mudra Loan Card. The Mudra Loan Card is like a debit card wherein the customer can make multiple withdrawals to manage their respective capital,

Applying for a Mudra Loan

Applying for the Mudra Loan is time-effective and easy to understand. The understated points serve as a general checklist for your documentation process. 

  1. Valid Photo Identification Proof

  2. Current Address

  3. Proof of Income

  4. Bank Statement (up to 6 months)

  5. Loan Application Form 

  6. Ownership- Proof of Residence/Office

  7. Proof of Continuity of Business

  8. Trade References

For more information on the same, refer to the guidelines stated at https://www.mudra.org.in

After ensuring that your documents are in order, you can refer to the four simple steps below to learn more:

  1. Visit the official Mudra Yojana website- https://www.mudra.org.in

  2. Download the Application Form and fill in the details. Remember to keep all your documents ready. 

  3. You can then approach the bank of your preference, which will further assess and provide guidance on the steps further.

  4. After the bank does its due diligence, your amount will be credited.