What is a Mudra Loan? Eligibility and Application Process
What is a Mudra Loan? Eligibility and Application Process
Mar 21, 2024
15 Mins
What is a Mudra Loan?
The Pradhan Mantri Mudra Yojana (PMMY) introduced the Mudra Loan Scheme, initiated by the Minister of Trade and Industry in 2015. This unique scheme aims to provide financial support to budding local businesses owned by Indian citizens. The goal is to assist these small businesses and startups in developing and expanding their production and distribution capabilities by offering interest-free or low-interest loans.
Online Application for Mudra Loan
To apply for a Mudra loan online, individuals can approach Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFMs), Micro Finance Institutions (MFIs), or Non-Banking Financial Companies (NBFCs). Applicants can also apply directly on the Udyami Mitra website at https://udyamimitra.in/page/mudra-loans. The online application process for a Mudra loan is simple and hassle-free. Loan amounts ranging from Rs. 50,000 to Rs. 10,00,000 can be availed.
Types of Mudra Loans and Application Process
The Pradhan Mantri Mudra Yojana offers three categories of Mudra loans, each representing a specific loan amount range for disbursement. These categories are Shishu, Kishore, and Tarun Mudra Loans. Interested entrepreneurs can apply for a specific category based on their business status. The application for Mudra loans can be made through the Mudra website.
Shishu Mudra Loan
This category caters to small businesses, such as startups and new local businesses, that require a smaller capital to establish. Applicants can receive an amount up to ₹50,000. The Shishu Mudra Loan application process begins by visiting the Mudra website and filling out the designated form. This category aims to ensure that all new businesses have a chance to succeed.
Kishore Mudra Loan
The Kishore Mudra Loan category is designed for businesses in the development phase. After receiving an initial round of Mudra loan, these businesses require more capital than ₹50,000. The loan disbursement range for Kishore Mudra Loans is ₹50,000 to ₹5,00,000. Applicants can apply online through the Mudra portal by submitting the joint Kishore and Tarun application form. The loan will be sanctioned after verification of all credentials.
Tarun Mudra Loan
Tarun Mudra Loans are for businesses that have further developed and require additional investment capital for expansion and maintenance. This category has the highest loan ceiling amount of ₹10,00,000. The online application process for Tarun Mudra Loan is the same as that for Kishore Mudra Loan.
Eligibility for Mudra Loan
Interested individuals who want to start and develop their own businesses can apply for Mudra Loans. The PM Mudra Loan is applicable for businesses involved in manufacturing, trade, allied agriculture, and non-corporate startups. Only Indian citizens who own the company can avail of Mudra loans. Joint applications from two or more Indian citizens and organizations are also allowed if their credentials and identity can be verified by a bank.
Required Documents for E Mudra Online Application
To qualify for the loan, applicants must have valid identity and address proof along with other essential documents. Some of the documents needed for the Pradhan Mantri Mudra Loan online application process include Aadhar Card, Driver's License, Voter Card, Pan Card for identity proof, Birth Certificate or Voter Card for citizenship proof, SC/ST/OBC Certificate (if applicable), Income Proof, Bank Statements, and passport-sized recent photographs.
Vision and Impact of Mudra Loan
The Pradhan Mantri Mudra Yojana aims to create a sustainable culture of entrepreneurship, boosting the Indian non-corporate industry and supporting budding startups on their path to success. This separate financial support system provides the necessary capital for the growth and development of new businesses.
Since the introduction of PMMY, the Mudra Loan Scheme has seen numerous success stories. In the initial year, 34,880,924 loans were sanctioned, amounting to ₹132,954.73 crores. By 2021, the government recorded a total sanction amount of ₹26,893.82 crores approximately in the year 2020-2021, demonstrating the positive impact of the Pradhan Mantri Mudra Loan.
Benefits of Mudra Loan
In conclusion, the Pradhan Mantri Mudra Yojana is a significant scheme that offers numerous benefits to individuals looking to start new businesses but lacking the required capital. Financial assistance from the government can greatly support these aspiring entrepreneurs and contribute to the development of the local industry and trade. The minimum interest rates on loans encourage individuals to become self-employed and foster economic growth."
What is a Mudra Loan?
The Pradhan Mantri Mudra Yojana (PMMY) introduced the Mudra Loan Scheme, initiated by the Minister of Trade and Industry in 2015. This unique scheme aims to provide financial support to budding local businesses owned by Indian citizens. The goal is to assist these small businesses and startups in developing and expanding their production and distribution capabilities by offering interest-free or low-interest loans.
Online Application for Mudra Loan
To apply for a Mudra loan online, individuals can approach Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFMs), Micro Finance Institutions (MFIs), or Non-Banking Financial Companies (NBFCs). Applicants can also apply directly on the Udyami Mitra website at https://udyamimitra.in/page/mudra-loans. The online application process for a Mudra loan is simple and hassle-free. Loan amounts ranging from Rs. 50,000 to Rs. 10,00,000 can be availed.
Types of Mudra Loans and Application Process
The Pradhan Mantri Mudra Yojana offers three categories of Mudra loans, each representing a specific loan amount range for disbursement. These categories are Shishu, Kishore, and Tarun Mudra Loans. Interested entrepreneurs can apply for a specific category based on their business status. The application for Mudra loans can be made through the Mudra website.
Shishu Mudra Loan
This category caters to small businesses, such as startups and new local businesses, that require a smaller capital to establish. Applicants can receive an amount up to ₹50,000. The Shishu Mudra Loan application process begins by visiting the Mudra website and filling out the designated form. This category aims to ensure that all new businesses have a chance to succeed.
Kishore Mudra Loan
The Kishore Mudra Loan category is designed for businesses in the development phase. After receiving an initial round of Mudra loan, these businesses require more capital than ₹50,000. The loan disbursement range for Kishore Mudra Loans is ₹50,000 to ₹5,00,000. Applicants can apply online through the Mudra portal by submitting the joint Kishore and Tarun application form. The loan will be sanctioned after verification of all credentials.
Tarun Mudra Loan
Tarun Mudra Loans are for businesses that have further developed and require additional investment capital for expansion and maintenance. This category has the highest loan ceiling amount of ₹10,00,000. The online application process for Tarun Mudra Loan is the same as that for Kishore Mudra Loan.
Eligibility for Mudra Loan
Interested individuals who want to start and develop their own businesses can apply for Mudra Loans. The PM Mudra Loan is applicable for businesses involved in manufacturing, trade, allied agriculture, and non-corporate startups. Only Indian citizens who own the company can avail of Mudra loans. Joint applications from two or more Indian citizens and organizations are also allowed if their credentials and identity can be verified by a bank.
Required Documents for E Mudra Online Application
To qualify for the loan, applicants must have valid identity and address proof along with other essential documents. Some of the documents needed for the Pradhan Mantri Mudra Loan online application process include Aadhar Card, Driver's License, Voter Card, Pan Card for identity proof, Birth Certificate or Voter Card for citizenship proof, SC/ST/OBC Certificate (if applicable), Income Proof, Bank Statements, and passport-sized recent photographs.
Vision and Impact of Mudra Loan
The Pradhan Mantri Mudra Yojana aims to create a sustainable culture of entrepreneurship, boosting the Indian non-corporate industry and supporting budding startups on their path to success. This separate financial support system provides the necessary capital for the growth and development of new businesses.
Since the introduction of PMMY, the Mudra Loan Scheme has seen numerous success stories. In the initial year, 34,880,924 loans were sanctioned, amounting to ₹132,954.73 crores. By 2021, the government recorded a total sanction amount of ₹26,893.82 crores approximately in the year 2020-2021, demonstrating the positive impact of the Pradhan Mantri Mudra Loan.
Benefits of Mudra Loan
In conclusion, the Pradhan Mantri Mudra Yojana is a significant scheme that offers numerous benefits to individuals looking to start new businesses but lacking the required capital. Financial assistance from the government can greatly support these aspiring entrepreneurs and contribute to the development of the local industry and trade. The minimum interest rates on loans encourage individuals to become self-employed and foster economic growth."
Author
Pluto Team
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