Tag: mudra loan

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.

 

 

Mudra Loan – Mudra Yojana by Modi In and Out

Pradhan mantri mudra yojana is started after the success of Pradhan mantri janawas yojana. Pradhan mantri mudra loan yojana scheme is otherwise called as modi loan scheme to support the small business and fund the unfunded.

What is the Purpose of Mudra Loan –

The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016.
All kinds of manufacturing, trading and service sector activities can get MUDRA loan. Loans are categorised according to the growth into Shishu, Kishor and Tarun. These products have been designed to cater to customers operating at the lower end of the enterprise spectrum.

Mudra loan for Small business

Mudra Loan Eligibility – Check if you can avail loan under Mudra Yojana

Mudra bank personal loan is given to the non-corporate small business sector through commercial banks, NBFCs.

Just approach the bank’s branch or search for any bank for pm mudra bank yojana online loan apply and download the form and apply.

You need not pay bribe for mudra yojana loan application form. It is mandatory that all the banks and NBFCs provide mudra loan to the needed. Mudra loan eligibility check mentions all kinds of manufacturing, trading and service sector activities can get MUDRA loan.

Mudra loans are categorised and loan coverage is provided according to the Mudra Yojana eligibility categories based on the growth of the business. Shishu (Rs.50,000), Kishor (Rs.50,000 to Rs. 5 lakh) and Tarun (Rs. 5 lakh to Rs. 10 lakh).

Mudra loan Categories – Shishu, Kishor, Tarun

Mudra Loans Sanction Details – Are you one of them and looking for expansion in your Business?

The Mudra loans are sanctioned to  Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas. extended through MFIs, NBFCs, Banks etc.

What you should know before approaching Bank for Mudra Loan –

  • No collateral is needed while applying for Mudra Loan. Banks and NBFCs take this as a chance for not providing the loan by mentioning unusual reasons. Hence, apply online for mudra bank loan.
  • The Mudra bank loan interest rate is usually based on the bank’s policies. The interest rates are deregulated and the banks have been advised to charge reasonable interest rates within the overall RBI guidelines.
  • Same is the case with prepayment of Mudra loan.
  • The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.

Interest rate is the rate at which you payback the loan to the bank. Each bank has their own way of calculating based on the terms by RBI. Earlier, the calculation method was base rate method. It was in 2016, the RBI changed the Base rate method to MCLR method to reduce the banks play with the interest rates charged on customers.

Repayment of loan is within how many months or years you pay back the loan to the bank. Prepayment is repaying the loan before the tenure ends. According to the RBI rules, prepayment of the loan before the loan tenure does not attract any kind of penalties. No fees or extra charges are to paid for repaying the loan before the tenure.

More details about the Mudra Yojana – Mudra Loan categories – 

Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products / schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to.

The financial limit for the mudra schemes are :-
a. Shishu : covering loans upto 50,000/- Interest Rate is 10-12%
b. Kishor : covering loans above 50,000/- and upto 5 lakh –  Interest rate  is  14-17%
c. Tarun : covering loans above 5 lakh to 10 lakh – Interest Rate starts from 16%.

How do you get Mudra Loan under Mudra Yojana Scheme?

MUDRA’s delivery channel is conceived to be through the route of refinance primarily to Banks/NBFCs/MFIs.

Pradhan Mantri Mudra Yojana is a Government of India scheme, which enables a small borrower to borrow from banks, MFIs, NBFCs for loans upto 10 lakh for non farm income generating activities. Generally, loans upto 10 lakh issued by banks under Micro Small Enterprises is given without collaterals.

Any individual including women, proprietary concern, partnership firm, private limited company or any other entity are eligible applicant under PMMY loans.

Mudra Loan Documents –

Loan documents are usually same as any other loan. But here are more details about documents required for each type of Mudra loan category

  • Identity Proof
  • Address Proof
  • Passport size photographs
  • Your Company’s address proof, id proof.
  • Bank statement for the past 6 months.
  • Quotation of machinery or items or vehicle to be purchased
  • Name of the supplier of the machinery or vehicle and details of the machinery

Under Mudra yojana, for Working capital loan / revamping the business space /  loan for plant and machinery, you should carry your business proof documents like..

  • Business address proof (copies of relevant licences)
  • Business registration proof (registration certificate)
  • Proof of continuity of business
  • Trade references
  • Last 2 years income tax returns
  • Last 12 months bank statements.
  • Business vintage proof

NOTE – While carrying your documents, don’t forget to carry your duly filled Pradhan Mantri Mudra Yojana Loan application form if you had applied online.

Mudra Loan Application Details –

  • Find out which bank is nearby and approach the bank for application of Mudra Yojana Scheme.
  • Mention which loan you want and take the application for that.
  • Or you can also download from any bank’s website and fill it and take print out while you go to bank.
  • Fill the application with all the details.
  • Carry the application and documents as mentioned in the application to the bank.
  • Submit them with the business idea you have.

Mudra Loan Procedure –

Though you fill the application, you need to have a solid business idea or an existing business to avail your Mudra loan.

Mudra yojana is purely small business friendly scheme and banks truly trust the borrowers alone without asking for a collateral.

So, since it is a risky move, the banks try to delay the procedure of Mudra loans. But, you as a borrower can demand for the mudra loan under mudra scheme.

The procedure for Mudra loan is simple…borrower goes to the bank, apply, show your business ideas along with proofs, gets loan approval and wait for mudra loan disbursal in the borrower’s account.

NOTE – Check the interest rates of various banks and repayment methods too. Some banks offer more repayment period, atleast 5 years more than the usual. Compare the interest rates of all your nearest branches of different banks. Even the smallest decrease in the interest rate helps you save a penny.

What are the banks that provide Mudra Loan –

The banks that are currently offering business loans under the Pradhan Mantri MUDRA Yojana have interest rates ranging from 11% to 37%. Some of the more popular banks that are offering MUDRA loans are as follows –

  1. Oriental Bank of Commerce
  2. ICICI Bank
  3. Kotak Mahindra Bank
  4. Standard Chartered Bank
  5. Indian Bank
  6. State Bank of Patiala
  7. Bank of India
  8. Central Bank of India
  9. IDBI Bank
  10. Citibank
  11. HDFC Bank
  12. IndusInd Bank
  13. Dena Bank
  14. State Bank of Bikaner and Jaipur
  15. State Bank of Travancore
  16. Canara Bank
  17. Allahabad Bank
  18. Vijaya Bank
  19. Karur Vysya Bank
  20. UCO Bank
  21. Bank of Baroda
  22. Union Bank of India
  23. Tamil nad Mercantile Bank
  24. Indian Overseas Bank
  25. South Indian Bank
  26. Bank of Maharashtra
  27. State Bank of Hyderabad
  28. HDFC Bank
  29. State Bank of India

Mudra Loan Process Time  –

For Shishu loans, normally 7 to 10 days is the turn around time for processing the loan proposals on receipt of complete information. So, the loan doesn’t have processing fees, the bank does not ask for collateral for your loan and never pay bribe for the application and not even for the sanction of loan. The whole idea is to provide the poor and tribal with funds to make them self reliant.

Any complaint can be complained to the toll free The numbers are 1800 180 1111 and 1800 11 0001.

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.