Personal finance simplified

How to apply for security free loan from Mudra Banks [upto 10 Lakh]

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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]

How to apply for security free loan from Mudra 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

  1. 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
  2. Proof of Residence
  3. Applicant’s Recent 2 Photographs
  4. Complete quotation of business needs
  5. 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.

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15 Comments
  1. India says

    Hello this is Akhil Pahuja, i am a businessman in Indore(M. P.) and have a good turnover in my current a/c in bank from around 3 year zo recently I ask for mudra loan to my bank (Union bank of india ) then my manager said me that.. I should have any securities than only he will give mudra loan…. Soo if i am not wrong to avail mudra loan there is no need of any collateral or securities…. Now please tell me what should i do ?

    Reply soon…. Thank You

    1. Mohammad Ali says

      Hello Akhil, Technically loans under the Mudra come without any collateral security but banks have the right to take a final call in accepting or rejecting your loan request. They may ask for collateral security when they think your business is high risk.

  2. Raj says

    I am a working professional, I am currently earning around 32K per month. I want to partner with private taxi services but I have never done any business before. While I be able to get a mudra loan?

  3. pukhrambam amuyaima singh says

    sir,
    i want to take loan under mudra loan. how can apply mudra loan by a VLE of CSC scheme. please guide me to take the loan.
    thanking you.

    pukhrambam amuyaima singh
    jiribam

  4. SHAJIMOHAN says

    Please send the complete details of mudra taran loan

  5. SHAJIMOHAN says

    Respected Sir,My name is shajimohan. Now I started a business at ezhamkulam panchayat in pathanamthiitta district of kerala state. I went to the bank. Here the bank is kerala grammin bank. First time they told me this” mudra”scheme is not here. Second time they told me yes they will given the loan. Suddenly they told me central government is not issuing the ‘credit gurantee to them. So they will given a letter,they have no objection totake loan from any other banks. In that letter mentioned the subject is mudra. Here this town is in the panchayat sector. In this panchayat 20 wards. Last ward is in the under of this grammin bank. Sir how this problem is solved. Please inform any way to get this mudra loan.

    1. Mohammad Ali says

      Hi Shaji,
      You can lodge a complaint in person or by post to Customer Service Cell (CSC) of MUDRA, in its Corporate office, by submitting a
      written letter with full details

      Customer Service Cell (CSC) of MUDRA,
      Micro Units Development & Refinance Agency Ltd.
      MSME Development Center, 1st Floor, C-11, G- Block,
      Bandra Kurla Complex (E), Mumbai- 400 051
      Tel: 022 6722 1465

      You can also email with full details to help@mudra.org.

  6. anthony das says

    Respected sir/madam I Anthony Das from Karnataka, gadag dist have a buissiness of supplying abacus materials to many schools and also give training for teachers . now I need 650000 loan from mudra to print the books and supply to schools .so kindly help me. To get it. Thanking you

    1. Mohammad Ali says

      Hi Anthony, contact your nearest (listed) bank with all needed documents

  7. ishwar dhaked says

    I m eswar dhakad from chechat i am intrested mudra loan but plz help me i m small business men but i want become large my business but my nearest bank staff not provide me informatio about mudra loan so plz help me and provide me informtion mudra.bank

    Call me 9828896307

  8. sanjay gujjar says

    I need to mudra loan

  9. Anonymous says

    i want to loan but i have no security money.please send me how to apply .i have an account in state bank of india..please help me

    1. Mohammad Ali says

      You can directly contact your Bank (in this case – SBI) but keep the following documents:
      MUDRA Loan Application
      Business plan
      Proof of Identity like Drivers License / Aadhaar Card / Passport etc.
      Residence proof like recent telephone bill / electricity bill etc.
      Applicant’s recent photograph less than 6 months old
      Quotation of machinery or other items to be purchased
      Name of supplier or details of machinery or prices of machinery
      Proof of identity / address of the business like tax registration, business license and more.
      Proof of category like SC/ST/OBC/Minority, if applicable.

      All the best

  10. N.BOOMINATHAN says

    indian bank current account older I WANT TO KISHORELONE AND THARUN LOAN PLESE REPLY WITH EMAIL

  11. Dheeraj chhabra says

    I Am interested in mudra bank loan please details send me.