The Pradhan Mantri Mudra Yojana (PMMY) is a government-led initiative aimed at offering easier financing options to micro and small enterprises. MUDRA is essentially an acronym for Micro Units Development and Refinance Agency. Also referred to as the Mudra loan scheme, the PMMY seeks to offer loans up to Rs. 10 lakhs to micro and small enterprises engaged in non-farming and non-corporate lines of business.
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.
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.
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.
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
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
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
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
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.
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
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 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.
Yes, firms operating as small manufacturing units or in service sector units, shops and stalls, vendors etc. in both Urban and Rural areas can apply for a E-Mudra Loan
The interest rate on E-mudra loan begins at 9.65%
The funds for working capital can be paid on demand while that for term loans have a repayment tenure of 3 to 5 years.
E-Mudra yojana does not offer any subsidy as such; however, the loan is offered to the business units. Subsidy on Mudra loan is divided under three Mudra loan types which are Shishu, Kishor and Tarun loan.
Micro Units Development and Refinance Agency is also referred to as the Mudra loan scheme, the PMMY seeks to offer loans up to Rs. 10 lakhs to MSMEs. Enterprises engaged in non-farming and non-corporate lines of business can apply online for an E-mudra Yojana. The application process for the scheme is carried out online.
5 reviews
I applyd fr emudra loan the process was simple and easy to understand. Got the shishu loan frm the scheme. My loan got approvd very quickly
Posted on 18 Nov 20
I found mudra loan and read d information and apply for loan online. Within a month I received a loan from bank under the Mudra Yojana.
Posted on 18 Nov 20
Overall good servicce and fast loan process . I was eligible for loan as i had a internet cafe of my own. The loan amount helped me for my business.
Posted on 18 Nov 20
I am an entrepreneur from Punjab I had applied in banks for MUDRA Loan and received my request got accepted. I am satisfied with the service.I am an entrepreneur from Punjab I had applied in banks for MUDRA Loan and received my request got accepted. I am satisfied with the service.
Posted on 18 Nov 20
The e mudra loan features was great eligibility criteria was simple I applied for 1 lakh loan for my business requirement and Got my loan approved very easily.
Posted on 18 Nov 20