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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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Project Report For Mudra Loan

Mudra Bank loan offers loans at affordable rates to new companies. Registered company owners and entrepreneurs for setting up small & medium businesses can benefit. To get a Mudra loan the first and foremost requirement is to submit a Project Report to the Bank. 

The Project Report should include all business-related financial, economic, managerial, and technical aspects of the project or business. The report should be easy to understand and in a neat format. Applicants can create the project report on their own or with the help of an outsider like CA’s, tax consultants, or a private company who has particular knowledge.

What are the contents of a project report for Mudra Loan?

The project report consists of all business-related details. It should cover both the technical and financial aspects of the particular business. Below are the components of the project report.

  1. Introduction – Description of the business.
  2. Aim/Vision – Focus or target for which the enterprise shall work.
  3. Objective: Just as the aim, the objective of the enterprise should also be mentioned.
  4. Area of Expertise – Key areas or skills on which employees have expertise shall work.
  5. Details about the Promoters and Executive: Profile descriptions like education qualification, experience, etc.
  6. Source of Funds: Explain in detail how you are planning to raise funds for the business, owned, borrowed, etc.
  7. Financial Budget – Complete financial information on expenditure inquired like machinery cost, total cost, furniture cost, and working capital required.
  8. Financial Statements: These should the financial statements like profit & loss statements, cash flow statements, and balance sheets.
  9. Estimation: The report should include a projected estimation of sales, purchases, expenses, incomes, etc.
  10. Business Equipment Details – Exhaustive list of equipment, parts, plants and machinery to be used in the project
  11. Commercial Aspects – Plans to be executed related to commercializing the project
  12. Company Profile – Details on the company’s background, launch, initiation, milestones, and achievements
  13. Export Orders – Information on export orders, whether domestic or international, if any
  14. Information about Employees – Total number of employees working on the project with their details
  15. Information of Products and Services: Details of all the products and services to be used in the project
  16. Logistics Details: Information on transportation costs to be incurred whether private or commercial
  17. Manufacturing Processes: Details of types of manufacturing processes to be used in the project
  18. Market Potential: Information about the target market, target customer, market demand of the product, etc.
  19. Advertising Strategies: Advertising strategies to be applied or executed for the project
  20. Ratio Analysis: Computation and analysis of different ratios and their implications.
  21. Space or Land Requirement: Information on space or land requirements, if required
  22. Third-Party Details: Details of the third party engaged with the project if any like raw material suppliers, traders, manufacturers, etc.
  23. Break-Even Analysis: Specify the break-even point of the project; and its viability in terms of cost and profit.
  24. Conclusion: All project reports should have a conclusion at their end
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.