What is Mudra Loan?
By November 2019, close to 10 lakh crore loans have been sanctioned under Pradhan Mantri Mudra Yojana, which was launched in April 2015. It offers three kinds of loans:
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).
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.
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Mudra Loan Eligibility Related FAQs
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✔️What is the maximum loan amount that can be availed by a borrower under the MUDRA scheme?
The structure of the MUDRA loan is mentioned as below: • Sishu Loans – Rs. 50,000 • Kishor Loans- Rs. 5,00,000 • Tarun Loans – Rs. 10,00,000 Therefore, the maximum loan amount that you can avail Under the MUDRA scheme is Rs. 10, 00,000. -
✔️Can MUDRA loans be availed for the purchase of goods vehicles or taxis?
Yes, MUDRA loan amount can be used for purchasing transport vehicles or taxis used for commercial purposes only. -
✔️Who is eligible for Mudra loan?
All small businesses can benefit from the MUDRA loan scheme. Traders, manufacturers, service providers, self-help groups, artisans, and even those who are working at lower levels are eligible beneficiaries of for the MUDRA loan. -
✔️What are the documents required for Mudra loan?
The documents required for MUDRA loan are mentioned below: • MUDRA Loan Application with self-attested identity proof of loan applicant and 2 passport size photographs. • Loan application prescribed by the lender seeking information about the applicant, past financial results and profile of the activity proposed • Details of suppliers, and types of machinery to be purchased for the activity proposed. • Identity of business ownership and business address. • Copies of necessary licenses and certificates to carry out the trade or activity for which the finance is availed. -
✔️How can I apply for Mudra loan?
You can apply for MUDRA loan online with the help of banks and NBFCs registered under this scheme. Public and private sector banks, small banks, rural banks, scheduled banks, NBFCs, and co-operative societies approve and disburse MUDRA loans -
✔️What is Mudra loan interest rate?
The interest rate on Mudra Loan doesn’t exceed 1.00% per month and is largely dependent on the base lending rates of financing institutions.
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