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:
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.
Any of the following occupations are eligible for a need-based Kishore loan from the MUDRA scheme.
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.
Individuals trading in agricultural products, textiles, and chemicals are eligible. So are service enterprises, shop owners, and any non-farm income-generating activities.
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.
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.
Repair shops or mechanic sheds for automobiles, laptops, refrigerators, cell phones, ACs, TVs, and other electronics.
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.
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.
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.
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.
Ensure you keep the following documents handy when applying for MUDRA Kishore Yojana.
To apply for the Kishore loan, you simply have to do as follows:
You can download your loan application form via the MUDRA Yojana website.
You will be required to fill in your information while uploading important documents. Ensure all details are correct.
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.
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.
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.
MUDRA Kishore Loans are offered to small enterprises that are in their growth stage and require an adequate sized loan. The amount offered by the MUDRA Kishore loan can be anywhere ranging from Rs. 50,000 to Rs 5 Lakhs.
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, you can opt for Bajaj Finance Business Loans available on Finserv MARKETS.
The minimum age of the applicant must be 18 years and the maximum MUDRA Loan age limit is set to 65 years. Loans can be availed by non-farm income-generating businesses in trading, manufacturing and services. The requirement of credit must be Rs. 10 Lakhs or lower.
Some of the more popular banks that are offering MUDRA loans are as follows –
● Oriental Bank of Commerce
● ICICI Bank
● Kotak Mahindra Bank
● Standard Chartered Bank
● Indian Bank
● State Bank of Patiala
● Bank of India
● Central Bank of India
● IDBI Bank
The eligible banks/NBFC, who comply with the requirements as notified, can avail of refinance from MUDRA for the loans given by them for eligible MUDRA compliant activities under Shishu, Kishore and Tarun categories.