What is MUDRA Yojana?

Micro Units Development and Refinance Agency (which is MUDRA full form) Loan scheme under PMMY or Pradhan Mantri Mudra Yojana is an initiative by Government of India that offers loans to individuals, SMEs and MSMEs. Launched in 2015 and announced by Prime Minister Narendra Modi, MUDRA Yojana is offered under 3 loan schemes named as Shishu, Kishor, and Tarun. These are collateral or security free loans provided by banks and NBFs with the repayment tenure from 12 months to 5 years with flexible EMIs.

 

Features of Mudra Loan

Interest Rate	Varies from bank to bank, depends on business requirements
Collateral/Security	Not required
Minimum Loan Amount	No limit
Maximum Loan Amount	Up to Rs. 10 lakh
Repayment Tenure	From 3 years to 5 years
Processing Charges	Nil
Types of Mudra Scheme	Shishu, Kishor and Tarun

Mudra scheme can be availed by individuals, SMEs, MSMEs, enterprises or businesses engaged in Manufacturing, Trading and Services Sectors, only.

 

Mudra Loan Details

Products offered under Mudra Loan

Products offered under Pradhan Mantri Loan Yojana are classified under 3 loan schemes named as Shishu, Kishor and Tarun. Below mentioned is the loan amount offered under each loan scheme:

• SHISHU Loan: Loans up to Rs. 50,000 (For start-ups and new businesses) can be availed in Mudra Shishu Loan scheme
• KISHOR Loan: Loans from Rs. 50,001 to Rs. 5,00,000 (For buying equipment/machinery, raw materials, business expansion for existing enterprises) are available in Kishor Loan Scheme
• TARUN Loan: Loans from Rs. 500,001 to Rs. 10,00,000 (For established businesses and enterprises) under Tarun Loan Scheme
  

  Mudra Loan Documents required

  • Self-written business Plan
  • Duly filled application with 2 recent Passport-sized photographs
  • KYC documents of Applicant and Co-applicants: Passport, Voter’s ID card, Aadhar Card, Drivig LIcense, PAN card, Utility Bills (Water/Electricity Bills)
  • Proof of belonging to a special category, such as SC, ST, OBC, Minority, etc. (if applicable)
  • Last 6 months’ bank statement
  • Business address and tenure proof, if applicable
  • Any other documents required by the bank

  Note: The Mudra loan application form to be filled and submitted are similar in the case of Shishu and Kishor loan scheme, whereas is separate for Tarun loan scheme.

  Benefits of Mudra Loan

  • Mudra loans are majorly offered to shopkeepers, traders, vendors, and MSMEs engaged in manufacturing, trading and service sector activities
  • Mudra scheme is covered under Credit Guarantee Schemes from Govt. of India
  • Availed loan amount can also be used as term loans and overdraft facilities
  • All Non-farm enterprises, i.e. small or micro firms engaged in the income generating activities can avail Mudra loan
  • Mudra loan can also be availed by people belonging to SC/ST category at concessional interest rates.
  • Mudra scheme can be availed via Mudra cards, as well

  Purpose of Mudra scheme under PMMY

  List of businesses that are covered under Mudra scheme to perform income generating activities are mentioned below.

  • Commercial Vehicle: Mudra finance for machinery and equipment can be used to purchase of commercial transport vehicles like tractors, auto-rickshaws, taxis, trollies, tillers, goods transports vehicles, 3-wheelers, e-rickshaws, etc.
  • Service Sector Activities: Starting businesses of salons, gyms, tailoring shops, medical shops, repair shops, and dry cleaning and photocopying shops, etc.
  • Food and Textile Product Sector Activities: Various activities involved in respective sector
  • Business activities for Traders and Shopkeepers: Setting up shops, service enterprises, trading and business activities and non-farm income generating activities
  • Equipment Finance Scheme for Micro Units: Maximum loan up to Rs. 10 lakh
  • Agri-allied Activities: Activities related to businesses in agri-clinics and agribusiness centres, food & agro-processing units, poultry farming, pisciculture, bee keeping, sorting, livestock-rearing, grading, aggregation agro industries, diary, fishery, etc.

  Mudra Loan Bank List

  Financial institutions that offer PM MUDRA Loan, directed by RBI are as follows:

  Allahabad Bank	Indian Bank
  Andhra Bank	Indian Overseas Bank
  Axis Bank	J&K Bank
  Bank of Baroda	Karnataka Bank
  Bank of India	Kotak Mahindra Bank
  Bank of Maharashtra	Oriental Bank of Commerce
  Canara Bank	Punjab and Sind Bank
  Central Bank of India	Punjab National Bank
  Corporation Bank	State Bank of India
  Dena Bank	Syndicate Bank
  Federal Bank	Tamilnad Mercantile Bank
  HDFC Bank	UCO Bank
  ICICI Bank	Union Bank of India
  IDBI Bank	United Bank of India

  How to Apply for Mudra Loans?

  The application form is available at mudra.org.in, so you can download the form and fill in all the required details. Different banks may have slightly different application procedures. You must visit the nearest branch of the desired bank from where you want to get the Mudra loan and submit the filled downloaded form and complete the bank formalities.

What is Mudra Loan for Women?

Mudra Yojana under PMMY encourages women entrepreneurship and for that Govt. of India has asked various financial institutions, including banks & Micro Finance Institutions (MFIs) to consider extending facilities, such as reducing interest rates on their loan for women borrowers. Currently, Mudra extends a reduction of 25 Basis Points (BPS) in the interest rates offered from NBFCs and MFIs to female entrepreneurs. The maximum loan amount offered under Mudra Yojana for women entrepreneurs is up to Rs. 10 lakh. The Mudra loan eligibility for women remains the same, as stated for individuals and Indian citizens.

What is MUDRA Card?

Mudra card is a debit card that is issued to the loan applicants who wish to apply for Mudra loan. When a loan applicant applies for this loan and if it gets approved, the bank or the  lender opens a Mudra loan account and issues the card along with it. The amount is disbursed into the Mudra account so the applicant can debit the amount from their Mudra Bank. This process also helps in keeping a credit history for the borrower who has applied for this scheme. The details and information regarding Mudra card can be availed online from PMMY’s official website.

Pradhan Mantri Mudra Loan Helpline Complain Number

S.N	National Toll-Free Number
1	1800-180-1111
2	1800-11-0001

Also, Check State Toll-Free Numbers for Pradhan Mantri Mudra Loan Yojana