Mudra Loan Documents
Mudra (Micro Units Development and Refinance Agency) was set up by Prime Minister Narendra Modi on April 8, 2015, to help finance the non-corporate, non-farming organizations in India. It was launched under the flagship scheme Pradhan Mantri Mudra Yojana (PMMY) to provide affordable loans to micro and small enterprises, one of its major aims include bringing the target audience into the formal financial sector. It provides loans of upto Rs. 10 Lakh to the eligible enterprises. No collateral needs to be offered, it is an unsecured type of loan.
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:
You can avail a loan of up to 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
Types of Mudra Loan |
||
Vehicle Loans |
Business Instalment Loan |
Rural Business Credit & Business Loans Group |
● Your Mudra application form ● Proof of income ● Loan application ● Photo Id ● 2 colour photos (passport size) ● Past 6 months’ bank statement ● Address proof
|
● 2 years’ ITR ● Mudra application form ● Photo id ● Address proof ● Financials (CA certified) ● BIL application ● Past 6 months’ bank statement ● Establishment proof ● Qualification proof ● Business continuity proof ● Trade references ● Residence or office ownership proof |
● ITR for the past 2 years ● Mudra application ● BIL application ● Address proof ● Photo id ● Age proof ● Business vintage proof ● Last 12 months’ bank statement
|
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!
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