E-Mudra Loan

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. 

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.

Happy Customers of Finserv MARKETS

Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!

I am passionate about the vehicle I drive. I want to protect it with the best available option. What amazed me was the full transparency, quick quotes and the attractive discount on the premium while choosing the annual payment option!

Check your personal loan eligibility in seconds!

My husband and I will finally move into our own house this Diwali. All thanks to Bajaj Finserv, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!

Get the best FD interest rates starting @ 8.40%. Let's start!

Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Orlando with just a click!

Get sum insured up to 1 Crore! Let's start!

The best way to start looking for health insurance is to do a close study of the coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premia!

Zero additional charge on part-payment option on Business loans! Let's start!

I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment with a No cost EMI on Bajaj Finserv EMI store just made my day!

Get home loan sanctioned online in 72 hours! Let's start!