Introduction to MUDRA Loan

MUDRA, under the Pradhan Mantri Mudra Yojana (PMMY) scheme, is a non-banking financial company that offers loans for financing small and micro Indian enterprises. MUDRA stands for ‘Micro Units Development and Refinance Agency Ltd’. With the goal of funding the unfunded, the MUDRA scheme is made to bring more small Indian enterprises into the country’s formal financial system. MUDRA loans offer loan amounts up to ₹10 lakhs for such micro-enterprises. The entire MUDRA scheme is subdivided into three types of loans:

  • Shishu Loan- Loans of upto Rs. 50,000
  • Kishor Loan - Loans between Rs. 50,000 and Rs. 5 Lakhs
  • Tarun Loan - Loans between Rs. 5 lakhs and Rs. 10 Lakhs

What is the MUDRA Kishore loan?

The MUDRA scheme’s loans are categorized based on the growth rate and needs of an enterprise. MUDRA Kishore Loans or MUDRA Kishore Yojana are offered to small enterprises that are in their growth stage and require an adequate sized loan. The loan amount offered by the MUDRA Kishore loan can be anywhere ranging from ₹50,000  to ₹5 Lakhs. The Kishore loan falls in between Shishu (up to ₹50,000 sized loans) and Tarun (₹5 Lakhs to ₹10 Lakhs ) categories.

Who is eligible for the MUDRA Kishore Loan?

Any of the following occupations are eligible for a need-based Kishore loan from the MUDRA scheme.

  • Non-Corporate Small Business Sector (NCSBS)

Any business that operates as a micro manufacturing unit that offers a product or service. The business can also consist of a multitude of partnership or proprietorship firms.

  • Shop Owners and Traders:

Individuals trading in agricultural products, textiles, and chemicals are eligible. So are service enterprises, shop owners, and any non-farm income-generating activities.

  • Transport Service Providers:

You can avail of a PMMY loan if you want to buy transport vehicles such as personal transport, the transport of goods, a passenger car, a small-goods transport vehicle, rickshaw, e-rickshaw,  taxi, three-wheeler, and other transport. Even two-wheelers purchased for a commercial purpose are eligible for a loan.

  • Personal Service Providers:

These consist of salon owners, courier agents, desktop publishing services, gyms, clothing and accessories stores,  drugstores, technology stores, dry cleaners, general stores, tailoring shops, etc.

  • Mechanics and Repair Shop Owners:

Repair shops or mechanic sheds for automobiles, laptops, refrigerators, cell phones, ACs, TVs, and other electronics.

  • Food Service Owners:

Fruit and vegetable vendors, jams and jelly making businesses, bakery owners, small-service food stalls, bread and bun manufacturing units, catering business owners, any canteen services or tiffin manufacturing business, cold chain vehicles and cold storage unit owners, pickle and papad making, sweet shops, ice cream, and ice manufacturing.

  • Agriculture-Allied Businesses:

 Pisciculture, fishery, poultry, dairy, grading and/or sorting agro-industries, livestock-rearing, aggregation, agricultural business centers, agricultural clinics, food processing industries and any agri-services that support the livelihood of individuals.

  • Artisans and Textile Workers:

Pottery, knitting, ginning of cotton, fashion designers, embroidery, handloom workers, dyeing and printing of cloth, chikan work, digital embroidery, manufacturing of vehicle accessories, zari work, stitching, textile non-garment product making like shoes, napkins, utensils, other furnishings.

  • Machine Operators:

 These include construction workers like crane operators, truck drivers, nuclear power plant workers, factory workers, and other such individuals. Individuals who also work on mining, manufacturing, or construction sites with the job of operating heavy equipment and machinery are also eligible.

You can read more about Mudra Loan eligibility criteria.

Documents Required for the MUDRA Kishore Loan

Ensure you keep the following documents handy when applying for MUDRA Kishore Yojana.

  • Identity proof
  •  Address proof
  • Passport-sized photos
  • Quotations of machinery and other items
  • Proof of business identity
  • Business address proof

Application Process for the MUDRA Kishore Loan

To apply for the Kishore loan, you simply have to do as follows:

Step 1:

You can download your loan application form via the MUDRA Yojana website.

Step 2:

You will be required to fill in your information while uploading important documents. Ensure all details are correct.

Step 3:

Approach a public or commercial sector bank to inquire about MUDRA Yojana loan requirements, interest rates and more. Here are some banks that offer the loan: State Bank of India, Bank of India, Punjab National Bank, Andhra Bank, and Bank of Baroda.

Step 4:

Your bank will review your credit score, loan application, ID proof, quotations, and more. Loan processing can take anywhere between a few weeks to just one day depending on your ledner, financial requirement, and the time at which you have applied.

Step 5:

Your lender (the bank of choice) will issue a ‘Sanction letter’ which is the proof that you have been accepted as a loan applicant. You can now receive your loan amount. Your amount can either be paid to you in installments of your choice or simply as a lump sum.

Kishore MUDRA loans are available on the Finserv MARKETS portal where you can apply for the loan online and fulfil your business goals. If your requirement exceeds the amount of Rs. 5 Lakhs offered by Kishore loans, you can opt for Bajaj Finserv Business Loans available on Finserv MARKETS. Through the Finserv MARKETS portal you can get online approval for loan amounts of up to Rs. 30 Lakhs without any hassles. 

Happy Customers of Finserv MARKETS

Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!

I am passionate about the vehicle I drive. I want to protect it with the best available option. What amazed me was the full transparency, quick quotes and the attractive discount on the premium while choosing the annual payment option!

Check your personal loan eligibility in seconds!

My husband and I will finally move into our own house this Diwali. All thanks to Bajaj Finserv, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!

Get the best FD interest rates starting @ 8.40%. Let's start!

Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Orlando with just a click!

Get sum insured up to 1 Crore! Let's start!

The best way to start looking for health insurance is to do a close study of the coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premia!

Zero additional charge on part-payment option on Business loans! Let's start!

I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment with a No cost EMI on Bajaj Finserv EMI store just made my day!

Get home loan sanctioned online in 72 hours! Let's start!