Mudra Bank Loan
Mudra stands for Micro Units Development and Refinance Agency Ltd. This association has been set up by Government of India for improvement and renegotiating activities identifying with micro units. Essentially with the vision of – “Funding the Unfunded’’. Companies, Small organizations, startup entrepreneurs of micro units in India face lack of formal financial support in starting or growing stage of their small businesses.
Mudra bank loan activity has been taken to give ease subsidizing to MFI (Micro Finance Institutes). MUDRA would be responsible for refinancing all financiers or financial institutions with financing of Small Businesses, Societies, Trusts Section 8 Companies, Co-operative Societies, Small Banks, Scheduled Commercial Banks and Rural Banks which are in the business of lending to micro or small businesses engaged in manufacturing, trading and services activities.
DIFFERENT TYPES OF MUDRA BANK LOAN :
As per the development stage and necessity of fund Mudra bank loan is given at present under three plans in Pradhan Mantri Mudra Yojana. The three plans are as taking after:
Types of Loan under the PMMY:
There are three schemes namely,
- The Shishu scheme:
Offering loan up to Rs. 50,000. In other words, it is likewise termed as a startup loan.
- The Kishor scheme:
Offering loan above Rs. 50,000 to Rs. 5 lakh. It is likewise expressed as the mid-level business foundation setup loan.
- The Tarun scheme:
Offering loan above Rs. 50,000 to Rs. 10 lakh. This is implied for the individual who needs to set up a business in a greater and propelled level.
MUDRA BANK LOAN ELIGIBILITY CRITERIA
Any Indian Citizen who has a marketable strategy for a non-farm sector income generating activity, for example, manufacturing, processing, exchanging or service area and whose credit need is under 10 lakh can approach either a Bank, MFI, or NBFC for profiting of MUDRA advances under Pradhan Mantri Mudra Yojana (PMMY). The terms and conditions of the lendor would need to be taken after for profiting of loans under MUDRA. The lending rates are according to the RBI rules issued in such manner now and again.
The MOST EFFECTIVE METHOD TO APPLY MUDRA BANK LOAN | BASIC GUIDE
Here are some easy steps that may help you as guidance for applying Mudra Loan:
In the first place you should know Mudra bank is not a different bank like SBI or ICICI. It is a finance scheme of Government to provide business loan to small business entrepreneurs in India. To get Mudra bank loan you should contact your closest public or private bank. To contact with a Mudra bank credit nodal officer (State Wise). Taking after are the progressions to apply Mudra Bank Loan:
- MUDRA Loan Application
- Business plan.
- Proof of Identity like PAN/Drivers License/Aadhaar Card/Passport and more
- Residence proof such as recent phone bill/power bill or property tax receipt and more.
- Recent passport size photo.
- Quotation of hardware or different things to be bought
- Name of supplier or details of machinery or prices of machinery
- Proof of category like SC/ST/OBC/Minority, if applicable
- Proof of identity / address of the business like tax registration, business license and more.
There is no processing fee or collateral security needed in getting Mudra bank loan.
Sample Mudra Bank loan Application Form
KEY FEATURES OF MUDRA BANK LOAN
The key elements are much enchanting and any little or smaller scale organization will discover these components much superior to whatever other elements offered by different plans.
- No insurance is important.
- There are zero preparing expenses.
- The rate of interest is just 1% per month.
- The maximum period of repaying the loan has been extended up to 5 years.
- Mudra cards have been dispatched that will give working capital credits.
- Eligibility Criteria for Participating Banks and Financial Companies –Scheduled Commercial Banks –
All scheduled commercial Banks in public and private sector with 3 years of continuous profit track record, net NPAs not exceeding 3%, minimum net worth of Rs.100 cr. and not less than 9% CRAR are eligible to Lend Loan
Regional Rural Banks –
All restructured RRBs having net NPA within 3% ( relaxable in deserving cases), having profitable operations and notcarrying any accumulated losses and CRAR >9% are eligible under Pradhan Mantri Mudra Scheme.
MFI, Small Business companies are also eligible if they fulfill the requirement
LIST OF TOP PUBLIC SECTOR BANKS PROVIDING MUDRA BANK LOAN
- UCO Bank
- State Bank of India
- Canara Bank
- Bank of India
- Syndicate Bank
- Indian Bank
- Punjab National Bank
- Bank of Baroda
- Central Bank of India
- Allahabad Bank
LIST OF TOP PRIVATE SECTOR BANK PROVIDING MUDRA BANK LOAN
- HDFC Bank
- IndusInd Bank
- Axis Bank
- ICICI Bank
- Ratnakar Bank
- Yes Bank
- Karnataka Bank
- Karur Vysya Bank
- South Indian Bank
- Lakshmi Vilas Bank
Mudra Scheme is in the news these days. People want to Know What is Mudra Scheme ?, who is eligible to apply, What interest rates are being offered?What is the application procedure? and where to get the application form? Many leading portals are providing details regarding the Mudra Bank Loan Scheme but there are very few resources that are giving the complete and exact information.
Mudra Bank Loan Scheme – Details | Process
There are many small organizations, companies and start ups, Entrepreneurs in India. All these are collectively known as Micro Units. It has been observed that these Micro Units lack Financial Support. If Financial support is given they can grow and be much better than they are currently.
MUDRA, Full form “Micro units Development and Refinance Agency Ltd.” is an institution that has been set up by Indian Government in the leadership of PM Sh. Narendra Modi. MUDRA Bank has been set up with only one goal in mind –Fulfilling all the Funding needs of Non Corporate Small Businesses.
Responsibilities of MUDRA Bank –
- Preparing and Launching the Policy Guidelines
- Registration and Regulation of MFI Entities.
Note – MFI Stands for Micro Finance Institution
- Running a Credit Guarantee Scheme
- Creating a Good Architecture for serving Micro business by Providing them Loan (Financial Assistance)
Pradhan Mantri Mudra Yojana Complete Details – Process Explained
A special scheme has been launched and named as Pradhan Mantri Mudra Yojana (PMMY). All the required responsibilities and functioning of Mudra Bank will be done under this scheme.
The big question that now arises in the mind of people is that What is the eligibility criteria to be part of Mudra Bank Loan Scheme and What is the procedure of Loan Application. Other important things are the interest rate & Application forms. But before going to that it is extremely important to Know the Category of your Business
Mudra Bank Scheme – Shishu, Kishor & Tarun Categories
Micro units or small business had to be categorized to signify the growth stage, Development and Funding requirements. Three categories were created for this purpose Namely “Shishu(Child Category)”, “Kishor Category” and “Tarun Category”.
To find out in which category your business falls, here is the explanation of each category –
Shishu(Child) category – As the name suggests, this category is for the Start ups. All those businesses that have been just started and looking for Loan will fall in this category. A loan Cover of Rs. 50,000 will be given to all micro units falling in this Category
Kishor Category – This one is for those who have started their business but it has be established yet. A loan cover from Rs. 50,000 to 5 Lakhs will be given to units falling into this category
Tarun Category – All small business which have been set up and established will fall into this category. There may be some financial requirements for the betterment of business. That’s why all small business or units falling into this category will be eligible for a Loan Cover of upto Rs. 10 Lakh
Apply for Mudra Bank Loan Scheme(PMMY) – Application Form Download & Other Details
Here is the step by step information regarding applying to the Mudra Bank Loan Yojana for all categories i.e. Shishu, Kishor and Tarun.
Note – You must prepare a business idea before applying. You have to present your business idea along with application form.
- First of all the borrower(Who wishes to take loan) under PMMY needs to visit the Private or Commercial bank nearest to his location
- Present your Business Idea along with the Loan Application (Forms given below)Along with the form you need to provide proof of identity, Proof of Address and recent passport size photographs
- All formalities as per the bank instructions are to be filled by the Borrower
- After completion of above Steps, the Loan will be sanctioned and will be made available to the Loan Seeker.
PMMY Pradhan Mantri Mudra Yojana – MUDRA Bank Helpline
If you have any doubts, queries regarding the scheme, you can contact the helpline in following ways
Write an Email to – firstname.lastname@example.org
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