Mudra Loan Eligibility

What is Mudra Loan?

• Shishu loans upto ₹50,000 to individuals in the early stage of business

• Kishor loans upto ₹ 5 lakh to established enterprises for expansion

• Tarun loans upto ₹ 10 lakhs to a fully established business

What is the Mudra Loan (PMMY) eligibility criteria?

Mudra loans extends loans to non-corporate, non-farming micro, small and medium enterprises (MSMEs) in rural and urban India. You are eligible for PMMY scheme if you are:

• Small manufacturer

• Artisan

• Fruit and Vegetable Dealer

• Shopkeeper

• Individual occupied in Agriculture

MUDRA loans can be availed from any participating banks, NBFCs (Non-Banking Financial Institutions) or MFIs (Micro Finance Institutions).

Lending Institution that are Eligible to provide Mudra Loan

Anyone who runs a small business enterprise is eligible to apply for Mudra (Micro Units Development and Refinance Agency). The purpose of Mudra Loan is to support the small scale businesses that don't have access to a formal channel of lending funds for their business. All public, private and regional rural banks are eligible to provide Mudra Loan.

Given below are the lending institutions that offer Mudra loan:

• Non-banking Financial Companies (NBFCs)

• Public and Private Sector Banks

• Micro Finance Institutions (MFIs)

• Regional Rural Banks (RRBs)

• Small Finance Banks (SFBs)

These institutions would be known as MUDRA loans under the PMMY (Pradhan Mantri MUDRA Yojana). The lending institution also needs to make sure it fits in the eligibility criteria in order to be eligible for MUDRA Loan. They are as follows:

• To be eligible the bank must have generated profits during the last two years.

• For public, private and regional rural banks the net performing assets should not exceed more than 15%, 10% and 6%.

• The net worth of the lending institution should be above Rs. 250 crore for private and public sector banks and above Rs. 50 crore for rural banks.

Altogether, 27 Public Sector Banks, 31 Regional Rural Banks, 17 Private Sector Banks, 36 Microfinance Institutions, 25 Non-Banking Financial Institutions and 4 Co-operative banks have been selected for Mudra loan.

Food Product Business that Comes Under Mudra Loan Eligibility

 Mudra loan (PMMY) eligibility is extended to the following businesses in food and allied industry:

• Units making pickles, papads, jams and ice-creams

• Bakeries, sweet shops, food stalls, canteen or catering facilities

• Cold storages or agricultural produce preservation centres

Agriculture Business that Comes Under Mudra Loan Eligibility

A business that generates its income from activities below qualifies for MUDRA scheme loan:

• Poultry, fisheries and livestock units

• Pisciculture and beekeeping facilities

• Agriclinics and agribusiness centres

Non-Farm Business that Comes Under Mudra Loan Eligibility

Absolutely. Enterprises involved in sectors other than farming can also avail loan under the Pradhan Mantri Mudra Yojana. These include:

Textile industries such as:

• Chikankari, zardozi and other hand or computer embroidered units

• Units running a powerloom or handloom facility, knitting or fabric dyeing and printing

• Facilities producing accessories such as bags, furnishings etc

Businesses providing services to a community or society:

• Beauty parlours and salons

• Gymnasiums and health and fitness centres

• Tailoring shops and boutiques

• Motorcycle, car, scooter or cycle repair shops

• Dry cleaning shops

• Photocopy shops or internet cafes

• Medical shops and courier agencies

Can MUDRA loan be availed for the purchase of goods vehicles or taxis?

Loans as per the MUDRA scheme are available to those looking to purchase a taxi, passenger car, or a vehicle to transport small goods or even an auto rickshaw.

Those who qualify under the aforementioned criteria can easily avail loans of up to Rs. 10 lakhs. However, if you are looking for a higher loan amount with quick approval and disbursal from a trusted lender, look no further than Bajaj Finserv business loans available on Finserv MARKETS.

Be it start-ups looking for new-age instructure or a small and medium enterprise looking to upgrade machinery, you can find a business loan of up tailored to your needs on Finserv MARKETS. Convenient online process, zero collateral, flexible repayment options, high loan amount of upto ₹30 lakhs, loan disbursal in less than 3 minutes along with exclusive offers make the Bajaj Finserv business loans on Finserv MARKETS all the more attractive.