It is a well-known fact that to establish, run and expand a business, an entrepreneur needs a considerable amount of money. However, at times, entrepreneurs of the future cannot secure enough funding for their business. To fund entrepreneurs and young start-ups, the Indian government came up with Pradhan Mantri MUDRA Yojana (PMMY). The organisation provides what is popularly known as a Mudra loan. The Mudra loan is approved and disbursed through public and private sector banks, NBFCs, small banks, rural banks, scheduled banks, and cooperative societies registered under the PMMY scheme.
The PMMY scheme has created three products: Shishu, Kishore, and Tarun, each of which has different eligibility criteria based on the stage of development. The Pradhan Mantri Mudra Yojana application form is now available on the portals of most banks that are officially authorised to offer the MUDRA loan.
To apply for the benefits of the MUDRA Yojana, you must follow the steps mentioned below:
Step 1: Apply for the Mudra loan by visiting the official website of the preferred financial institution and downloading the Mudra loan online application form.
Step 2: Fill in the MUDRA loan application form by providing your name, date of birth, residential/business address, and educational qualifications.
Step 3: In the KYC documents section, fill in your Voter ID number, Aadhaar number, and driving license numbers, among others. Also, specify your identity and address proofs.
Step 4: Now, fill in any other relevant details along with your email id. If you own a business, mention the line of business, the activity/purpose of the business, the proposed plan, annual sales, and other information, as requested on the PMMY form.
Step 5: Specify the loan amount and tenure of your choice. Enter your bank account details and read and understand the mentioned declaration carefully. Finally, fill in the date and place and sign the application form.
Step 6: Once you submit the application form by clicking on the ‘Submit’ button that you will see underneath, the financial institution will review the application. Once the loan application is approved, you will receive a MUDRA card, using which, you should be able to withdraw the amount from an ATM with the help of a Mudra card and use the funds to meet your business requirements.
The list of required documents for the MUDRA loan is mentioned towards the end of the application form. Applicants will also be needed to attach these documents with the form before submitting.
There are several sections in the MUDRA loan application form, which are as follows:
Complete name of the enterprise
Serial number of the application
Name of the branch
Mudra Yojana category: Shishu, Kishor, or Tarun
Complete name of the enterprise
Type of enterprise: It could either be a proprietary partnership, a private or a public limited company or others
Business address proof, complete with state and PIN code-related information
Mention whether the business premises is self-owned or rented
Applicant’s email ID
Existing and proposed business activity
Approximate date of commencement of business in DD/MM/YYYY format
Unit registration details
Act under which it is registered
Registered address of the office
Caste Certificate of the owners if in case they belong to the likes of a Scheduled Caste or Tribe, Other backward classes or any other Minority Community.
Personal details like name, serial number, gender, date of birth, and other such details
Contact information such as the likes of your email ID, contact number, registered residential address
Highest academic qualification and professional degree
Any valid proof of identity and address
A copy of the PAN card
Director Identity Number for all the directors
Total experience in the current line of business
Relationship with the other officials/ directors, etc.
Names of the Associate Concerns
Addresses of Associate Concerns
Current bank account details
Nature of the Association Concerns
Extent of interest as a proprietor or partner, director, or as an investor in Associate Concern
Types of facilities for a savings bank account, current account, or even cash credit account or term loan or even letter of credit or bank guarantee
Current bank account details
Total loan amount which has been already availed
Total outstanding as on date
Security that has been pledged
Asset classification status
If you have a current account with the bank, then the customer ID needs to be provided
A certification statement that states you have not applied for a loan with any other bank or financial institution
Types of facilities in terms of cash or credit or term loan or even Letter of Credit or Bank Guarantee
Total loan amount
Provide the purpose of the loan
Details of the primary security offered (with an approximate value)
Actual sales in the last two years
The statement of sales, revenue, inventory, working cycles, creditors and debtors, promoter’s contribution, total limits, etc.
Types of machine or equipment
Name of the supplier
Total cost of the machine
Contribution that is being made by the promoters, in (₹) terms
Total loan amount required
The period of repayment along with the granted moratorium period
Capital (net worth in case of companies)
For each statutory obligation, you must mention whether you complied or not by selecting ‘Yes’ or ‘No’ as applicable; mention ‘NA’ if not applicable. Also, in the ‘Remarks’ column in the application form, any detail in connection with the relevant obligation must be provided. The following are the statutory obligations:
Registration under the Shops and Establishment Act, 1948
Registration with the relevant government bodies that are at the helm of MSME matters (Provisional/ Final)
Latest returns for sales tax filed
Latest returns for income tax filed
Other outstanding dues for statutory requirement
Declaration with passport-size photographs and signature(s) of the Proprietor/Partners/Director
Mention of date and place
Acknowledgement slip for loan application under PMMY
As per the MUDRA Yojana scheme, loans are available for entrepreneurs who reside in backward sections of the country so that they can meet their business and/or expansion goals.
If you plan on getting started with your start-ups or are looking for modern infrastructure, you can also take a look at the business loan options available on Bajaj Markets. The online application process for business loans is convenient and requires zero collateral. In addition to the same, you will also get to select the loan repayment tenure. The loan approval takes less than 2 minutes. Apply for a business loan today!
Applicants have to follow the steps mentioned below to apply for MUDRA loan:
One can apply for MUDRA Loan under PMMY both online and offline from public sector banks, private sector banks, NBFCs, co-operative banks, small finance banks, regional rural banks and microfinance institutions.
Documents Required for MUDRA loan:
Some of the more popular banks that are offering MUDRA loans are as follows –
Any Indian Citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is up to Rs. 10 Lakhs can approach either a Bank, MFI or NBFC for availing of MUDRA loans under PMMY.