How to apply for security free loan from Mudra Banks [upto 10 Lakh]
Mudra Bank, which is setup by Government of India (Ministry of Finance’s letter No.27/01/2015-CP/RRB dated May 14, 2015). The main purpose of this Bank is to provide security free loans up to 10 Lakhs to the unorganized business sector and non-corporate small business enterprises through financial institutions like Public sector banks, Private sector commercial banks, NBFCs, Co-operative banks, MFIs and Regional rural banks. [List of banks]
Mudra Bank will be providing these loans under the Pradhan Mantri MUDRA Yojana scheme, currently there are 3 types of financial products available – Depending on the nature of business one can get finance from one of the below schemes of MUDRA
1. Shishu: This is basic loan with maximum loan amount up to Rs. 50,000.
2. Kishor: The loan amount under “Kishor” is above 50,000/- and up to 5 lakhs.
2. Tarun : Under “Tarun” scheme loan covering above 5 lakhs to 10 lakhs.
Mudra scheme will be monitored by MUDRA / Department of Financial Services, Government of India. For this purpose, Government of India has developed a portal (http://www.mudra.org.in), wherein the banks and financial institutions directly put their achievement details, which is consolidated by the system for public. These loans is given without any collateral as per the guidelines issued by RBI.
What are the documents required for availing loans under MUDRA scheme?
The terms and conditions of the loan will be governed by the rules of RBI. The guidance regarding the documents needed may be obtained from your nearest financial institutions/banks. However, for the purpose of ease, I have listed out the basic documents to be submitted along with the downloaded application
- Self attested copy of Voter’s ID card or Driving License or PAN Card or Aadhaar Card or Passport or any other Photo IDs issued by Govt. authority as proof of identity
- Proof of Residence
- Applicant’s Recent 2 Photographs
- Complete quotation of business needs
- Need to attach a one page application format for “Shishu” scheme, which has been posted in MUDRA website. For Kishor and Tarun category, a 3 page application format has been designed and the same is also posted in MUDRA official website.
Who are the eligible applicants under Pradhan Mantri Mudra Yojana?
Any individual / unorganized firm, partnership firm, private limited company or any other entity like manufacturing, trading and services are eligible applicant under this Pradhan Mantri Mudra Yojana (PMMY) loans. The turnaround time for processing the loan is normally 7 to 10 days on receipt of complete documents / information.
If you have any doubts regarding Pradhan Mantri Mudra Yojana, kindly leave as comments. We would try our level best to address those.