Mudra Loans are present under PMMY that is Pradhan Mantri Mudra Yojana. The businesspersons owning a shop or small-scale business are provided with Mudra Loans in the form of a mudra card. A borrower can get credit without any difficulty via RuPay card. A borrower can get Shishu loan, Kishore loan, and Tarun loan, depending on the financial support that a borrower or an entrepreneur needs.
Prime Minister of India, Mr. Narendra Modi, has issued a new policy focusing on developing Indian economy and several schemes have been made under this policy. For instance, Jan Dhan Yojana and later the launch of MUDRA have taken place through this policy in India.
There are the following significant documents amongst others, which business owners must provide to the bank, in order to Apply for the Mudra Loans:
There are three kinds of loans that a person can apply for under Mudra Loan - Vehicle Loans, Business Installment Loans, and Loans for Group and Rural Business Credits.
The documents for getting loans in these three categories are discussed as follows:
There are numerous benefits that you can derive after applying for Mudra Loans and some of them are discussed as follows:
The application process of Mudra Loan is simple. However, the application process differs in distinct banks. You have to keep in mind that every bank is not able to offer you a Mudra Loan. You must check out if the banks in your locality provide Mudra Loans or not. After finding out a right bank, just find out the application process of the bank and the eligibility criteria to get a Mudra Loan before filling up the application form.
No, it is not required to have a bank account in a bank, which you have chosen to get your Mudra Loan. However, your chances of getting the Mudra Loan can increase if you have a bank account in the same bank.
If you want to get a loan for your startup business, you should take the Shishu Loan. You just have to submit the details of your business idea after filling the application form. In addition, you have to provide relevant documents, meet the eligibility requirements for getting approval on your Mudra Loan afterward.
The private sector banks, such as HDFC Bank, Axis Bank, ICICI Bank, and others, as well as the public sector banks like the Bank of India, State Bank of India, UCO Bank, Punjab National Bank, etc. give Mudra Loans to artisans, vendors, and startup companies. In addition, MFI (Micro Finance Institutions), regional rural banks, and foreign banks also provide Mudra Loans.
No, you do not have to provide any security or collateral to a bank for receiving a Mudra Loan.
No. There is no subsidy under PMMY scheme. If a loan is associated with any kind of government scheme and the government is offering a subsidy, the subsidy would be present under PMMY scheme.
Yes, you can apply for Mudra Loan for purchasing a taxi or an auto if you are going to use your vehicle for public transportation only.
Yes, there is a difference in the format of the application form of Shishu, Tarun, and Kishore Loan schemes. The application form of Shishu Loan has a one-page format, whereas the application forms of Kishore and Tarun Loans have three-page format. All these forms are posted on the mudra website.
If any Indian citizen has a business plan to accumulate income and they are meeting the criteria for Mudra Loan, they can get the Mudra Loan.
The applicants of Mudra Loan can get a repayment time of five years. The best part of Mudra Loan is that the applicants would not face any difficulty to pay instalments to the bank as the interest rates are low.
Yes, the entrepreneurs of the urban areas are eligible to get Mudra Loan for improving their business.