Mudra Loan - Pradhan Mantri Mudra Yojana (PMMY) Online

Key Objectives of Mudra Loans

MLIs that meet the eligibility requirements can provide loans under the Pradhan Mantri Mudra Yojana. These MLIs include:

1. Banks in the Public Sector

1. Banks in the Private Sector

1. Government-run Cooperative Banks

1. Banks in Rural Regions

1. Institutions of Microfinance (MFIs)

1. Finance Companies That Are Not Banks (NBFCs)

1. Banks with Small Finance (SFBs)

1. More financial intermediaries that Mudra Ltd. has authorised to operate as member financial institutions.

Pradhan Mantri Mudra Yojana (PMMY) Categories

Mudra Loan Interest Rates

The Mudra loan interest rate depends on the profile of the applicant. There are several banks in the public sector as well as the private sector offering MUDRA loans. All the lenders have certain set guidelines are the final rate of interest at which the loan is provided to an applicant is decided by the lender itself. This is done after scrutinizing the business requirements of the applicant as well.

Mudra Loan Eligibility

1. Eligible Borrowers: Individuals, sole proprietors, partnerships, Pvt./Public Ltd. companies, other legal entities

1. Age Criteria: 18 to 65 years

1. Loan Purpose: For service, trading, manufacturing, or small business setup — up to ₹10 lakh

1. Units Covered: New and existing businesses

1. Credit Profile: No defaults; satisfactory credit history

1. Skill Requirement: Applicant should possess required skills/experience; education criteria based on project type

1. Security: No collateral or third-party guarantee required

1. Lending Institutions: Public & private banks, RRBs, SFBs, MFIs

Documents Required to Apply for MUDRA Loan

The documents required for MUDRA Loan can be listed as follows:

Step-by-Step Guide to Applying for a Mudra Loan

Online Process

• Visit UdyamMitra Portal or Mudra Website
• Click “Apply Now” and choose your borrower type
• Fill in personal, business, and loan details (Shishu, Kishore, or Tarun)
• Upload required documents (ID, address, photo, signature, business proof)
• Submit and save your Application Number for tracking

Offline Process

• Visit any MUDRA-authorized bank or NBFC
• Request and fill out the loan form
• Attach documents and submit
• Bank verifies and disburses on approval

Benefits of Availing a MUDRA Loan

Here are the key features and benefits of Mudra loan:

1. Financial Inclusion: They give individuals who were previously left out of the formal banking system a chance to get credit.

2. No Collateral Requirement: Mudra Loans are collateral-free, eliminating the need for borrowers to pledge assets to secure the loan.

3. Interest Rate Subsidy: The government provides interest rate subsidies to keep the cost of borrowing affordable.

4. Entrepreneurship Promotion: By providing support to small businesses, Mudra Loans promote entrepreneurship and help individuals realize their business goals.

PMMY Achievements in FY 2024-25: Loans Disbursed & Impact

Activities Covered under Mudra Loan

1. Transport: Autos, taxis, goods carriers, tractors, e-rickshaws, two-wheelers

1. Personal Services: Salons, gyms, tailoring, dry cleaning, boutiques, repair shops

1. Food: Catering, pickles, sweets, food stalls, bakery, cold storage

1. Textiles & Handicrafts: Khadi, embroidery, handloom, dyeing, printing

1. Agri-Allied: Dairy, poultry, fisheries, beekeeping, agro-processing

How to Obtain a Mudra Loan

Getting a Mudra Loan is a straightforward process. Here are the general steps:

1. Business Plan: Start by creating a comprehensive business plan that outlines your business model, funding requirements, and expected outcomes.

2. Eligibility: Ensure you meet the eligibility criteria for Mudra Loans, which typically require your business to fall under the micro and small enterprise category.

3. Loan Application: Approach participating financial institutions such as banks, NBFCs, or microfinance institutions, and fill out the Mudra Loan application form. Be prepared to provide details about your business, the loan amount needed, and your repayment plan.

4. Loan Approval: The financial institution will evaluate your application and creditworthiness. Mudra Loans are usually collateral-free, making it accessible to a wide range of entrepreneurs.

5. Loan Disbursement: Once your application is approved, the loan amount is disbursed to your account, and you can start using it to grow or kickstart your business.  

Purpose of Assistance of MUDRA Loan 

MUDRA Loans offer term loans, overdraft (OD) limits, or composite loans based on the borrower's business needs. 

1. Eligible Uses: Funds can be used to acquire capital assets, working capital, or for marketing-related expenses. 

1. Purpose: Specifically meant for small income-generating businesses in manufacturing, processing, services, or trade, and not for personal or consumption needs. 

1. Loan Amount: Determined by the business plan and proposed investment. 

1. MUDRA Card: A RuPay debit card designed for working capital needs, allowing easy and flexible access to credit. 

What is a MUDRA Card?

When you apply for a Mudra Loan, you are issued a Mudra Card which is a debit card. After you successfully apply for the loan, you will be required to open an account along with which the card is issued. You can use the Mudra Card to withdraw the loan amount which will be disbursed to your Mudra account after you successfully apply for the loan.

Mudra Loans for Women Entrepreneurs   

Equipped with Mudra loans, female entrepreneurs have not only driven economic expansion but also ushered in a surge of gender empowerment, questioning established norms and making significant contributions to the socio-economic fabric of the country. Their inspiring story serves as another evidence of the close relationship between gender parity and financial inclusion. 

Eligibility for Mudra Loans for Women: 

1. Female applicants must fall within the age range of 18-65 years. 
2. The loan can be utilized to support non-corporate, non-agricultural businesses in the trading, services, or manufacturing sectors. Women can apply for Mudra loans for various purposes, such as phone repairing, tailoring, spa services, and beauty parlours. 
3. Special consideration is given to women with artisanal or weaving skills and those who have received training from institutions like R-SETIs or other professional organizations. Applicants involved in retail trade are not eligible. 

1. Applicants are expected to maintain a favorable credit history and have no criminal record associated with their name. 

Mudra Loan Customer Care Numbers   

1. Toll-Free Numbers: 1800 180 1111 / 1800 11 0001

1. Email: help@mudra.org.in

1. Website: www.mudra.org.in

1. Postal Complaints: Swavalamban Bhawan, C-11, G-Block, BKC (E), Mumbai–400051,  022 6722 1465

1. In-Person Complaints: Visit the Customer Service Cell at MUDRA’s corporate office during business hours

1. Public Grievances Portal: www.pgportal.gov.in

1. Nodal Officers: Contact via SIDBI offices (details on Mudra website)

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