Tag: MUDRA Online Apply

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Mudra Loan: Who can avail? Eligiblity?

MUDRA Loan:who can avail,eligibility

Any individual running non-corporate non-farming business activities can apply for a MUDRA loan under the Pradhan Mantri Mudra Yojana Scheme. The following are the Mudra Loan Eligibility criteria:

  1. Applicants should have an age limit of 18 years and a maximum of 65 years.
  2. Individuals, startup firms, business owners, entrepreneurs, SMEs, and MSMEs are eligible.
  3. Traders, Artisans, Manufacturers, Retailers, etc. engaged only in trading, services, and manufacturing sectors are also eligible.
  4. If the applicant’s requirements in less than 10 lakh.
  5. Applicants with good repayment history, and no bank dues.
  6. People belonging to the SC/ST/OBC category.
  7. Applicants with no loan defaults with any financial institution.

The following business bodies are eligible for Mudra Loan:

1. Business vendors and shopkeepers:

Shopkeepers and vendors like fruits and vegetable vendors can apply for a loan ranging up to ₹ 10 Lakh.

2. Service Sector Units: 

Beauty parlours, boutiques, parcel services, automobile repairs, dry cleaning, gymnasiums, saloons, tailoring units, etc.

3. Textile industry: 

Textile industries such as handloom, knitting, silk work, apparel design, embroidery, traditional dying, etc. can get monetary help from mudra loans.

4. Food production sector: 

Start us dealing in food processing, shops, food parcel services, or cold storage can avail this mudra loan and expand their business.

5. Agricultural activities: 

Loans under this scheme can be availed for agricultural activities such as dairy farming, poultry, fishing, and the improvement of small canals and wells.

6. Vehicle: 

Loans will be available to purchase passenger cars, goods transport vehicles, and three-wheelers.

The eligibility documents for the Mudra loan vary for different loan purposes. The documents required for specific purposes are as follows:
  1. Documents for Vehicle Loan
  • Duly filled application form for Mudra Yojana
  • Vehicle loan application form
  • 2 passport-size photos of the applicant
  • Identity proof such as an Aadhaar Card, Passport, Voter ID Card, Driving License, etc.
  • Address proof such as an Aadhaar Card, Passport, Bank statements, telephone or electricity bill.
  • Income proof
  • Lastly, bank statement for the latest 6 months
2. Documents for Business Instalment Loan
  • Duly filled application form for Mudra Yojana
  • Loan application form
  • 2 passport-size photos of the applicant
  • Identity proof such as an Aadhaar Card, Passport, Voter ID Card, Driving License, etc.
  • Residential Address proof such as an Aadhaar Card, Passport, Bank statements, telephone or electricity bill.
  • Proof of ownership of the enterprise or residence.
  • Trade references
  • Proof of qualification, establishment, and business continuity
  • 2 years ITR and CA certified financials
  • Bank statement for the last 6 months
3. Documents for Business Loan
  • Duly filled application form for Mudra Yojana
  • Loan application form
  • Identity and Age proof such as Aadhaar Card, Passport, Voter ID Card, Driving License, etc.
  • Residential Address proof such as an Aadhaar Card, Passport, Bank statements, telephone or electricity bill
  • Proof of ownership of the enterprise or residence
  • Proof of qualification, establishment, and business continuity
  • Bank statement for the last 12 months
  • Proof of business continuity
  • Income tax return for recent 2 year
Is the Agriculture sector Eligible for Mudra Loan?

MSMEs include the agricultural sector, but only a few types of businesses in the agricultural sector are eligible for Mudra Loan:

  • Livestock
  • Poultry
  • Beekeeping
  • Fishing
  • Agribusiness centers
  • Agriclinics
  • Food and agri-produce business
Must Read: MUDRA Loan Application Form
About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.

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MUDRA Loan Application Form

Pradhan Mantri MUDRA Yojana encourages the young generation into entrepreneurship by promoting them with financial aid, focusing on the growth of micro-enterprises. Under the Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has created involvements named ‘Shishu’, ‘Kishore’ and ‘Tarun’ to denote the different stages of development and funding needs of the beneficiaries of micro, small, and medium entrepreneurs and also for the next phase of growth for their business. The amount covers: 

  1. Shishu: covering loans Up to 50,000/-
  2. Kishor: covering loans above 50,000/- and Up to 5 Lakh
  3. Tarun: covering loans above 5 Lakh and Up to 10 Lakh
What are the Important Fields and sections of the MUDRA Loan Application Form?

Below sections of the MUDRA application form are as follows:

A. For office use:
  1. Enterprise Name
  2. Application Serial Number
  3. Name of the branch
  4. Category – Shishu/Tarun/Kishor
B. Business Information:
  1. Name of the Enterprise
  2. Constitution of Enterprise – Proprietary/Partnership/Pvt
  3. Current Business Address – including State/ PIN
  4. Mobile Number
  5. E-mail ID
  6. Date of Commencement
  7. Proposed Business Activity – Skilled/Unskilled
  8. Registration Details
  9. Registered Office Address
  10. Social Category
C. Background Information of Proprietor/Partners/Directors:
  1. Serial Number, Name, DOB, Sex,
  2. Residential address with mobile number,
  3. Academic qualifications
  4. Experience in the line of activity
  5. Pan Card
  6. Proof of Identity/Address Proof
  7. Relationship with Bank/Directors, If any
D. Name of Associate Concerns and Nature of Association:
  1. Name of Association Concern
  2. Address of Associate Concern
  3. Bank Details
  4. Nature of Association concern
  5. The extent of Interest as Pro/Partner/Director or just Investor in Associate Concern
E. Banking/Credit Facilities Existing: (In Rs.)
  1. Type of Facilities – Current AC, Savings AC, Cash AC, Term Loan, LC/BG
  2. Current Bank Details
  3. Limit Availed
  4. Outstanding as of Date
  5. Security Lodged
  6. Assets Classifications
  7. If Banking with this Bank, the Customer ID
  8. Certification Statement from the Borrowers that no loan was taken from any bank or financial institution apart from the one mentioned in Section E.
F. Credit Facilities Proposed: (In Rs)
  1. Type of Facilities – Cash Credit, Term Loan, LC/BG
  2. Total Amount
  3. The purpose for which required
  4. Details of Primary Securities Offered
G. In case of Working Capital: Basis of Cash Credit Limit applied: (In Rs.)
  1. Actual Sales in the last two years
  2. Projected figures of sales, revenue, inventory, working cycle, creditors, debtors, and promoter’s contribution.
H. In case of Term loan requirements, the details of machinery/equipment may be given as under:
  1. Type of the machine/equipment
  2. The purpose for which it is required
  3. Name of the supplier
  4. The total cost of the machine
  5. A total contribution that is being made by the promoters in INR
  6. The total amount of loan that is required
  7. Repayment with moratorium period requested for 
I. Past Performance/Future Estimates: (Rs.)

Past Performance / Future Estimates and Actual performance for two previous years of:

  1. Net Sales
  2. Net Profit
  3. Capital (Net Worth in the case of Companies)
J. Status Regarding Statutory Obligations:
  1. Registration under the Shops and Establishment Act
  2. Registration under the MSME (Provisional/ Final)
  3. Drug License
  4. Latest Returns for Sales Tax Filed
  5. Latest Returns for Income Tax Filed
  6. Any other outstanding dues outstanding
K. Declaration:
  1. Declaration with photograph(s) and signature(s) of Proprietor/ Partners/ Director
  2. Mention of Date and Place
  3. Acknowledgement Slip for loan Application under Pradhan Mantri MUDRA Yojana
How to download the MUDRA Loan Application Form?

CLICK HERE::  

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.

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Mudra Loan Interest Rate

The Government of India has introduced the Mudra loan intending to promote affordable business and entrepreneurship loans. The full form of Mudra is Micro Units Development and Refinance Agency Loans which are provided to small enterprises and non-farm agencies, trading, and manufacturing. 

The interest rates of MUDRA loans may vary from bank to bank. Subject to requirements MUDRA categorizes these loans into three segments, Shishu, Kishor, and Tarun. Therefore the interest rates also change depending on each segment, based on their needs and prescribed guidelines.

What are the Interest rates under MUDRA?

The MUDRA loan interest rate for these categories varies depending on the amount borrowed and how it will be used. Below in detail shows the interest:

Shishu Loan:

Under Mudra, Shishu loan provides small entrepreneurs up to Rs. 50,000 for a repayment period of five years, to establish their business. The interest rate for this loan will be from 1 per cent per annum to 12 per cent per annum.

Kishor Loans:

This loan will be useful for one who already kicks start their business but needs capital for running the business’s day-to-day activities. Also for new ventures where the Shishu loans are not sufficient, they can opt for Kishor loans. Kishor loans will allow the applicant to borrow between Rs. 50,000 and 5 Lakhs. The interest rate for Kishor loans ranges between 8.05 per cent to 11.05 per cent. Sometimes the interest rate will go higher based on the existing guidelines or credit rating of the borrower.

Tarun Loan:

Growth to the next phase of an existing business requires funding at the correct time, entrepreneurs can apply for a Tarun loan for the expansion. Applicants can get a loan amount between Rs. 5 Lakh to Rs. 10 Lakh. The loan tenor will be decided by the bank as per their policies. The interest rate for the Tarun loan ranges between 11.5 per cent to 20 per cent. 

How to get a Mudra Loan at a low-interest rate?

Follow the below-mentioned suggestions to get a Mudra loan with low interest rates:

  • Research about banks offering Mudra loans.
  • Compare banks offering Mudra loans and their interest rates.
  • Applicant’s banking history and repayment capability play a factor in reducing the interest rates
  • The higher the annual turnover, the lower the interest rate
  • Applicants with no previous loan defaults will have an advantage
  • The nature of business will define the interest rates
Below are the interest rates provided by a few banks:
Lenders Interest Rate
SBI 9.75% onwards
Bank of Baroda 8.15% onwards
Oriental Bank of Commerce 9.65% onwards + SP (Strategic Premium)
Corporation Bank 9.90% onwards
Bank of Maharashtra 8.15% + BSS onwards
Andhra Bank 8.20% onwards
Punjab National Bank 9.60% onwards

 These interest rates also will vary at the discretion of the banks and RBI. Also, GST and other fees will be extra imposed on the amount. Click here to learn more about, how to apply for a Mudra loan?

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you must have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.

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How can I Apply MUDRA Loan?

Applicants can apply for Mudra loans online and offline at their convenience. MUDRA, Micro Units Development & Refinance Agency loans are offered up to ₹ 10 Lakh to micro, small, and medium enterprises. The loan is applicable for a repayment period of a maximum of 5 years without submitting any security as collateral. Public sector banks, private sector banks, NBFCs, co-operative banks, small finance banks, regional rural banks, and microfinance institutions consider the loan application with genuine and proper documents.

How to Apply for a MUDRA Loan Online?

Applicants can apply for a Mudra loan online by visiting the official website of the particular bank. It saves time and trouble-free process. Below are simple steps to apply for Mudra loan registration online:

  1. Identify the appropriate bank.
  2. Browse the official website of the particular bank.
  3. Download the online application form.
  4. Fill in the different sections and fields with the required details
  5. Complete the application and necessary documents
  6. Submit Project Report/Business plan
  7. Wait for the bank representative to contact you for further processing.
  8. Once the loan application form and attached documents are processed and verified, the loan shall be approved and further disbursed by the bank
How to Apply for a MUDRA Loan Offline?

If applicants want to file the Mudra loan application form offline, follow the below-mentioned steps:

  1. Applicants should research the particular bank that provides Mudra loans. Study the interest rates and other charges before you put up an application.
  2. Completed application form.
  3. Submit Project report/Business plan.
  4. Together with the application form, submit the passport-sized photographs, identity proof, address proof, company’s address and identity proof, caste certificate, if applicable, financial statements, IT returns, sales tax returns, and other equipment details.
  5. Complete all the bank’s formalities and procedures.
  6. The loan shall get approved, once all the documents are verified.
  7. After the loan is approved, the desired amount will get credited to the particular bank account within working days.
How to apply and download the MUDRA Loan application form?

CLICK HERE

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your report.