Mudra Loan – Pradhan Mantri Mudra Yojana Scheme

Pradhan Mantri Mudra Yojana scheme is one of the best schemes of NDA government. A great initiative to encourage micro and small entrepreneurs. Indians are people who depend on hard work and talent. The best opportunity for those who look for giving a shape to their ideas by getting a maximum of 10 lakhs loan. No collateral required for MUDRA loan. PMMY scheme is valid for non farm loans segment. Banks can lend to members lending institutions which lend to  (MUDRA) Micro Units Development and Refinance Agency Limited.

However, the PMMY scheme mentions categories under which the lending institutes can grant loan based on the income generation.

  1. Shishu Loans – Upto 50,000/-
  2. Kishor Loans – From 50,000/- to 5 lakh /-
  3. Tarun Loans – From 5 lakh to 10 lakh /-.

This is truly a boon for those wishing to aim success at low interest rates investment opportunities. As usually, the micro entrepreneurs usually look for unorganised sector lending for faster investments where they land up in paying  higher interest rates.

All scheduled banks public and private banks are eligible for lending provided their NPAs not more than 3% and should have 3 continuous years profit record.

APPLY ONILINE FOR MUDRA LOAN PMMY

Download the form from the official website and fill the form before visiting the branch. http://www.mudra.org.in/

Getting a loan under MUDRA scheme is easy as lenders in India are looking for lending to meet their targets set by the government itself.

Interest rates for each category under PMMY Scheme or MUDRA loan-

  1. Sishu – Rs 50,000 – 10 – 12%
  2. Kishor – Rs. 50,000 – 5 lakh – 14 – 17%
  3. Tarun – Rs. 5 lakh – 10 lakh – Minimum 16%.

Eligibility check for MUDRA Loan – 

  1. MUDRA loan applicant should be generating minimum revenues to be eligible for loan under any category.
  2. A vegetable shop vendor, machinery shop, manufacturing units, food service units, artisans, small industries, anyone can apply for the MUDRA loan.
  3. All kinds of trading, manufacturing and service sector entrepreneurs  are given loan under pmmy scheme.

Documentation Required for MUDRA Loan –

Like any other loan, the MUDRA loan also needs KYC documentation done. Since it is a collateral free loan, it is easier in deciding to go for the loan.

  1. Address proof
  2. Aaadhar card
  3. Pan card
  4. Photographs of applicants
  5. Business identity proof and address proof
  6. Income statement of 6 months.
  7. Supplier details like machinery vendor name, quotation of machinery needed to be bought.

If loan is taken for working capital, then the MUDRA loan applicant need to submit the following documents too.

  1. Business address proof
  2. Business registration certificate
  3. Proof of continuity of business
  4. 2 years income tax returns
  5. 12 months bank statement
  6. Business vintage proof.

How to approach a bank for MUDRA Loan – 

Mudra loan is also a loan category where every bank and branch deals with the scheme. So, if you have a great idea and if you are already making revenues, if you are wishing to expand yourselves, then you can approach the bank nearby.

Steps Involved in Applying for MUDRA loan – 

  1. Apply online or apply at the branch. Fill all the fields required.
  2. Show all the documents required for no further delay in the process.
  3. Get sanction letter for your enterprise.
  4. Get the loan amount disbursed in your account directly.
  5. Get an acknowledgement from the bank for all the documents you deposited with them.

Challenges faced while applying for MUDRA Loan – 

Since, the pmmy scheme mentions there is no collateral to be asked for MUDRA loan applicant to grant the loan, the banks can ask different questions and documentation to delay the process of sanctioning the loan. You can provide all the required documents at one go and avoid further delays.

The banks have no right to reject an application if the documents are all in place. If still the lender is not ready to avail loan, you can raise a complaint against them in consumer forum or can file an RTI.

Shop for best interest rates from any bank you choose. There can be different rates according tot he category you fall in. Hence, visit every nearby bank and try reducing the interest rate before you avail the loan.

Repayment period for MUDRA Loan – 

Usual repayment period is 5 years. Some banks also help the applicants to choose a bit longer tenure. Choose the best fit as the EMI effects the tenure.

Mudra Loan and Personal Loan Which is better –

Maximum loan amount – Same for both

Repayment Tenure – Mudra Loan is given more tenure when compared to personal loans

Interest Rate – It is almost similar for both the loans

Collateral – Required for Personal loan and not required for Mudra loan

Reason – A solid reason is required for Mudra loan but no reason is required for Personal Loan

Loan Process – Easy for personal loan and a bit tough in real for Mudra loan.

However, if you are in the category of getting a mudra loan, it is recommended to opt for it. Loanyantra’s services are coming soon to meet your needs for Mudra Loan. Nevertheless, Personal loan is also a good option for your immediate needs and Loanyantra is the best one to go with as you get cashback and also low interest rate from many top banks in India.  All you need to do is just give a missed call to us for personal loan and our experts will take care of everything.