Mudra Loan Documents

Mudra Loan Documents

Product Categories under the PMMY

• Shishu

Under this scheme/product the beneficiary micro unit/entrepreneur can avail loans upto Rs. 50,000 through the micro credit scheme. Entrepreneurs must be in the primary stages of starting a business or looking to start one. To encourage the youth of today to become entrepreneurs more emphasis is given to the Shishu category units. The owner must submit a machinery supplier information, the quotation along with its details and any other items that need to be purchased. 

• Kishore

Under this scheme/product the beneficiary micro unit/entrepreneur can avail loans upto Rs. 5 Lakh through the micro credit scheme. The borrower must be looking to expand his business operations. The technical and economic viability of the business must also be reported. 

• Tarun

Under this scheme/product the beneficiary micro unit/entrepreneur can avail loans upto Rs. 10 Lakh through the microcredit scheme. The entrepreneurs must have their small businesses established for a while and the additional funds are needed to expand the business operations as well as any micro-units that need funds for setting up. The borrower must showcase the latest position of the enterprise along with other documents required for availing the loan. 

Features of the PMMY Loan

The mudra mission is “To be an integrated financial and support services provider par excellence, benchmarked with global best practices and standards, for the bottom of the pyramid universe for their comprehensive economic and social development.”  

With this ambition in mind, the unique features of the loan includes:

• Maximum loan amount that can be availed is Rs. 10 Lakh. 

• There is no processing fee for Shishu and Kishore category units. The processing fee of 0.5% of the loan amount is charged for Tarun loans. 

• To be eligible you must have a new or existing small business in the non-farming and non-corporate category. 

• The repayment period varies from 3 to 5 years. 

• The borrower’s credit guarantee is taken by the government. If under any circumstances the borrower is unable to repay the loan, the loss is borne by the government. 

Funding support for various groups under Mudra Loans

• Micro Credit Scheme

For Micro enterprises loans can be availed for upto Rs. 1 Lakh. Joint Liability Groups (JLGs) and Self Help Groups (SHGs) are encouraged to apply. 

• Women Enterprise Programme

Mudra loans are offered to women entrepreneurs who wish to start/expand their business at lower interest rates. A discount of 25 basis points is provided on the interest rates. 

• Refinance Scheme for Regional Rural Banks

Scheduled Co-operative Banks, Regional Rural Banks, and Commercial Banks are encouraged to avail of the mudra facilities. The maximum limit for refinancing is Rs. 10 Lakhs in the form of working capital or term loans. 

• Securitization of Loan Portfolio

The benefits of Mudra loans can be taken by micro-enterprises through participation in  securitization of their loan assets. 

Documents required to avail the Pradhan Mantri Mudra Loan

The document required for mudra loans can be divided into 3 categories. These includes:

1. Vehicle Loans

• A duly filled Pradhan Mantri Mudra Yojana application form 

• A duly filled vehicle loan application form 

• Income proof 

• Identity Proof 

• 2 Passport size photographs 

• Bank statement for the last 6 months 

2. Business Installment Loan

• A duly filled Pradhan Mantri Mudra Yojana application form 

• A duly filled application form of the business installment loan 

• Income tax return statement for the last 2 years 

• CA certified business financial reports 

• Identity proof 

• Address proof

• Proof of qualification 

• Proof of establishment 

• Trade references 

• Bank statement for the last 6 months 

• Proof of business continuity 

• Proof of ownership of office/apartment 

3. Business Loan Group and Rural Business Credit

• A duly filled Pradhan Mantri Mudra Yojana application form 

• A duly filled application form of the business installment loan 

• Income tax return statement for the last 2 years 

• Identity proof 

• Address proof

• Bank statement for the last 1 year 

• Business vintage proof 

• Proof of ownership of office/apartment

If you do not meet the eligibility criteria or cannot procure the necessary documents required for the mudra loan, you can opt for the Bajaj Finserv Business Loan available on Finserv MARKETS. If you need an amount higher than Rs. 10 Lakhs, the Bajaj Finserv Business Loan provides loans upto Rs. 30 Lakhs at competitive interest rates with flexible repayment tenures. You can apply for the loan on Finserv MARKETS to fulfill all your professional goals today!