E-Mudra Loan Scheme 

E-Mudra Loan

If you’re eligible, you can obtain a financial help under the Mudra loan scheme online, through the Finserv MARKETS portal. Known as the E-Mudra Loan, this option is simpler and easier for borrowers. 

What are the Features of the E-Mudra Loan?

The E-Mudra Loan, available on Finserv MARKETS, has several distinct features that prove to be beneficial to borrowers which are listed below:

• The Mudra loan scheme offers working capital financing, which can be used for various purposes such as an expansion of capacity, modernization of business operations, meeting working capital requirements, purchase of plant and machinery, and renovation of business properties.

• The rate of interest for loans issued under the PMMY scheme ranges from 8.4% to 12.35% per annum.

• The repayment period ranges from as low as 12 months to as long as 60 months.

• The E-Mudra Loan can be availed by both new and existing micro and small enterprises. 

What are the Products offered under the PMMY scheme?

There are three types of loans offered under the Mudra loan scheme. These loans are Shishu, Kishore, and Tarun loans. Here’s a quick look at the salient features of these E-Mudra Loans. 

1. Shishu Loan

This loan is ideal for individuals and enterprises that are in the early stages of establishing a business.

• Type of loan: Term loan

• Amount of loan: From Rs. 10,000 to Rs. 50,000

• Repayment tenure: From 6 months to 12 months

• Processing fees: None

• Margin amount: Nil

• Collateral requirement: None

2. Kishore Loan

This loan can help established enterprises expand their business operations.

• Type of loan: Term loan or working capital loan

• Amount of loan: From Rs. 50,000 to Rs. 5,00,000

• Repayment tenure: From 12 months to 36 months

• Processing fees: None

• Margin amount: 10%

• Collateral requirement: None

3. Tarun Loan

This type of loan is beneficial for fully established businesses.

• Type of loan: Term loan or working capital loan

• Amount of loan: From Rs. 5,00,000 to Rs. 10,00,000

• Repayment tenure: From 12 months to 60 months

• Processing fees: 0.50% of the loan amount + taxes

• Margin amount: 10%

• Collateral requirement: Hypothecation of plant and machinery, receivables, and stock

Who is Eligible to Apply for the E-Mudra Loan?

Financing options under the PMMY scheme are available for micro, small and medium enterprises (MSMEs) that are engaged in non-corporate, non-farming activities. The following are some examples of categories of applicants who are eligible for the E-Mudra Loan under the PMMY.

• Small manufacturers

• Artisans

• Fruit and vegetable dealers

• Small shopkeepers

Some examples of businesses eligible to apply for financing under the Mudra loan scheme, available on Finserv MARKETS, are listed here:

• Businesses providing services to a community or society

• Beauty parlors and salons

• Gymnasiums and fitness centers

• Tailoring shops 

• Vehicle repair shops

• Photocopy shops 

• Internet cafes

• Medical shops 

• Courier agencies

What are the Documents needed to Apply for Financing under the Mudra Loan Scheme?

To apply for an E-Mudra Loan on Finserv MARKETS, you need to submit a specific set of documents listed under the Mudra loan scheme. The paperwork needed depends on whether you opt for the Shishu, Kishore, or Tarun loan. 

The Documents needed for the Shishu Loan include:

• GST registration certificate 

• Shop & establishment certificate

• Details of Udyog Aadhar 

• Bank account details

• Quotation of assets that need to be purchased

• Details of assets purchased

• Details of the supplier providing the assets

The Documents needed for the Kishore Loan include:

• Proof of identity, such as PAN, Aadhar card, voter ID, or passport

• Proof of residential address, like utility bills, property tax receipts, or passport 

• Bank statements for the previous 6 months

• Balance sheet statement pertaining to the two previous financial years as well as projections for the next year

• Price quotations in case assets like equipment or machinery have been purchased

• Proof of business identity, like Aadhar, and proof of business establishment

• Profit & loss statement for the previous two years

• Partnership deed or memorandum and articles of association, as applicable

• Passport size photographs of the applicants

The documents needed for the Tarun Loan are the same as the requirements for the Kishore Loan.

The E-Mudra Loan offered under the PMMY scheme is a beneficial initiative that helps businesses of all scales and sizes manage their working capital requirements. If you need to borrow a higher amount, you could always opt for the business loan, available on Finserv MARKETS. With loan amounts going up to Rs. 30 lakhs, exclusive tailor-made offers, zero collateral requirements, and flexible repayment tenures, you stand to gain in more ways than one.

Financial Documents Required

As a part of the loan application, you must furnish the following financial documents:

Historical Balance Sheet:

Unaudited balance sheets of the existing units from the last two years.

Tax Returns:

Income tax and sales tax returns.

Projected Balance Sheet:

Projected balance sheets of the organisation for one year, which includes the working capital requirements. In case of a long-term loan, the projected balance sheet must be provided for the loan tenure.

Quotations:

Pro forma invoices or quotations for the assets that must/will be purchased have to be submitted with the loan application. Also, estimates for planned civil works must be included too. Depending upon the bank that you go with, the officials may also discuss the feasibility and viability aspects of the business. 

Asset and Liability Statements:

The application must also include the asset and liability statements, including those of the applicant, directors, and partners of the company, if any.

Memorandum and Articles/Partnership Deed:

You have to provide the Memorandum of Association as well as the Articles of Association of your company. If the business is established as a partnership, then the partnership deed must be included.

Photograph:

Two photographs each of all of the directors, partners, and proprietors of the company must be included with the application. The photographs have to be recent, i.e., no more than six-months-old.