You can easily apply for a Mudra Shishu Loan for your business online by following the below-mentioned steps:
Step 1: Visit the Udyami Mitra website at https://udyamimitra.in/ and click on “Apply Now”.
Step 2: Enter name, email address and mobile number at the bottom of the page and click on “Generate OTP”. Now enter the OTP received and complete the process by clicking on the ‘Verify OTP’ button.
Step 3: Fill in all personal and professional details on the following page and click on the “Apply Now” button under “Loan Application Center”.
Step 4: Select ‘Shishu’ to apply for a Shishu Loan.
Step 5: Now, you need to enter a few details about your business such as background information of the proprietors and directors of the firm, future working capital estimate, lender of preference, etc.
Step 6: Once the above information has been filled in, click on the ‘Submit’ button. Finally, you will be taken to a declaration page. Tick the appropriate checkbox to continue and complete the application process.
Once you complete your Mudra Shishu Loan application process, a success message with the loan application number will be displayed on the screen. Note the reference number for future correspondence.
Alternatively, you can also apply for the Shishu loan offline by visiting your nearest branch of the bank you wish to avail the Mudra Shishu loan from. All you need to do is obtain the Mudra loan application form from a bank official, fill in all the requisite details in the form and attach all the relevant documents and submit the same to the bank official. Once all your documents are verified, your loan shall be approved and the amount shall be disbursed to your bank account.
Under the Atma Nirbhar Bharat Package, the Government of India announced the ”Interest Subvention Scheme for MUDRA – Shishu Loans” in May 2020 with an objective to help small businesses mitigate the impact of the COVID-19 pandemic. Under this scheme, Mudra Shishu Loan beneficiaries were provided an interest subsidy of 2% for a period of 12 months.
The Mudra Shishu Loan scheme is a boon for aspiring entrepreneurs in the country as you can easily avail small loans at affordable interest rates to fulfil their working capital needs. With a Shishu Mudra loan, you can get a credit of up to ₹50,000 to fund your working capital needs. Once you expand the business to higher levels, you can also consider Kishore and Tarun loans under the Mudra scheme which offer higher loan amounts and are aimed towards bigger and more established business enterprises.
The tenure for the Shishu Mudra loan can range from 3 years to 5 years, depending on your loan provider.
Shishu loan category under the Mudra loans are designed to help small businesses meet their working capital needs by offering them unsecured loans of up to ₹50,000.
Indians citizens between the ages of 18 and 65, with no criminal records or defaulting history are generally eligible for the Shishu loan. This can, however, vary depending on your loan provider.
Small business owners between the ages of 18 and 65 are eligible for the Shishu Mudra loan.
The interest rates of the Shishu Mudra loans can vary depending on your loan provider and your creditworthiness. However, since this is a government-backed loan scheme, the interest rates will be nominal.
No, Shishu loan borrowers are not required to offer any insurance or security.