MUDRA (Micro Units Development and Refinance Agency) Scheme under Pradhan Mantri MUDRA Yojana (PMMY) is an initiative to provide financial support to the Micro, Small or Medium-sized Enterprises (MSMEs). Sometime, MSMEs under proprietorship or partnership suffer from the lack of funding since the owners do not have collateral to secure a bank loan. Under PMMY scheme, policy guidelines were made for financing MSMEs, which in turn can grow faster by providing a boost to the rural economy, as well as improving the overall economy of India.
Purpose of MUDRA Loan
MUDRA loan scheme was launched by the Government of India to help MSMEs with the following purposes:
- To start a new business
- For business expansion
- Buying plant & machinery
- To get working capital for business
- Hiring or training staff
- To buy equipment, commercial vehicles, etc.
Must Read: Is there any subsidy on Mudra loan?
Pradhan Mantri MUDRA Yojana Application Form Important Fields & Sections
MUDRA Loan Application form for Shishu, Kishor and Tarun Scheme can be downloaded by clicking on the link:
https://www.MUDRA.org.in/Home/PMMYBankersKit
The form is also available on the official online portals of most of the banks that are officially entitled to offer MUDRA loans. The common MUDRA loan Application Form is quite elaborate and has several sections and applicant has to furnish all the information along with pertinent documentation. The sections for MUDRA loan Application Form are as follows:
For Official Use:
- Complete name of the enterprise
- Serial number of the application
- Branch name
- Category chosen– whether Shishu, Kishor or Tarun
Business Information:
- Complete name of the enterprise
- Constitution of the enterprise – Proprietary or Partnership or Private Limited or Limited Company or any other
- Current Business Address, including State and PIN Code
- Whether the Business Premises is self-owned or rented
- The contact details with the telephone and the mobile number
- An email ID for communication
- Existing and the proposed business activity
- An approximate date of commencement of business in DD/MM/YYYY format
- Registration details of the unit
- If it is registered, the following details are needed:
- The registration number and
- The act under which it is registered
- The registered address of the office
- The social category for application, whether Scheduled Caste or Tribe, Other backward Classes or any other Minority Community like Buddhists, Muslims, Jains, Sikhs, Christians or Zoroastrians
Complete Background Information of the Proprietor/ Partners/ Directors is needed
- Name, serial number, sex, date of birth and other personal details
- Contact details like email ID, phone number, registered residential address
- Highest academic qualification and professional degree
- Any valid proof of identity and address
- A copy of the PAN Card
- Director Identity Number or DIN for all the directors
- The total experience in the current line of business
- The relationship with the other officials/ directors, etc.
Names of the Associate Concerns and the Nature of their Association
- The names of the Associate Concerns
- The addresses of Associate Concerns
- The current bank details
- The nature of the Association Concerns
- The extent of Interest as a Proprietor or a Partner or even a Director or maybe just as an Investor in Associate Concern
Banking/Credit Facilities Existing (In Rs.)
- The Types of Facilities for savings bank account, current account or even cash credit account or term loan or even Letter of Credit or Bank Guarantee
- The current bank details
- The total limit already availed
- The total outstanding as on date
- The security that has been lodged
- The asset classification status
- In case of currently banking with this bank, then Customer ID needs to be provided
- A certification statement from the borrowers that no loan was taken from any other bank or financial institution apart from the one mentioned in Section E
Total Credit Facilities Proposed: (In Rs.)
- The type of facilities in terms of cash or credit or term loan or even Letter of Credit or Bank Guarantee
- The total amount
- The purpose for which it is required
- The details of the primary Security Offered (With an Approximate value to be mentioned)
In Case of the Working Capital: On a Basis of Cash Credit Limit Applied: (In Rs.)
- The Actual Sales in the last two years
- The projected figures of the sales, revenue, inventory, working cycles, creditors and debtors, promoter’s contribution, total limits, etc.
In case of requirement for Term Loan, the detail of Machinery/ Equipment could be given as under:
- The type of the machine or the equipment
- The purpose for which it is required
- The name of the supplier
- The total cost of the machine
- The total contribution that is being made by the promoters in INR
- The total amount of loan that is required
- The period of repayment with moratorium period requested for
Past Performance/ Future Estimates: (In Rs.)
The following figures are needed for the actual, estimated and proposed scenario.
- Net Sales
- Net Profit
- Capital (Net Worth in case of Companies)
Status Regarding Statutory Obligations:
For each Statutory Obligation, the borrower has to mention whether complied with by selecting ‘Yes’/ or ‘No’ as applicable. And if not applicable, mention ‘N.A.’ Also, in the ‘Remarks’ column in the form, any detail in connection with the relevant obligation to be given. Statutory Obligations are:
- Registration under the Shops and Establishment Act
- Registration under the MSME (Provisional/ Final)
- Drug License
- Latest Returns for Sales Tax Filed
- Latest Returns for Income Tax Filed
- Any other outstanding dues for Statutory requirement
Declaration:
- Declaration with photograph(s) and signature(s) of Proprietor/ Partners/ Director
- Mention of Date and Place
- Acknowledgement Slip for loan Application under Pradhan Mantri MUDRA Yojana
Must Read: How to Apply for Murda Loan Online?
MUDRA Loan Application Form for ‘Shishu’ Loan
There is one exclusive ‘MUDRA Loan Application Form’ for ‘Shishu’ category available on the same web site. This is much shorter than the general form since many sections do not apply at the inception of the business, a stage for which ‘Shishu’ loan is approved. ‘Shishu’ loan requires no processing fee and does not require any collateral. Repayment period could be extended up to 5 years.
Documentation Required
A list of the required documentation is mentioned towards the end of the form. Applicants have to furnish the pertinent documents based on the type of loan and the type of business they are applying for. These include:
- Identity Proof
- Residence Proof
- Proof of Minority and SC/ST
- Address and Identity Proof of Business Enterprise
- Bank Account Statement of past 6 months
- Balance sheet of the past 2 years along with Sale tax and/ or Income Tax return – This is applicable if the loan amount is over 2 lakh
- Projected balance sheet for 1 year for working capital limits. Projected balance sheets for the entire loan period in case of the term loan. – Both applicable for loans over 2 lakh
- Sales realized in the current financial year till the date of loan application submission
- For the proposed project, a report to be submitted that contains all the detail of technical and economic feasibility
- Partnership deed of partners for a partnership
- Memorandum and Articles of Association for a company
- In case a third party guarantee is not available, Asset and Liability statement might need to be furnished from the borrower(s), Directors and partners to find the net worth
- Two copies of the photo of the proprietor or each of the partners and directors
Under PMMY, MUDRA loans are offered through Commercial Banks, Rural Regional Banks (RRBs), Small Financial Banks (SFBs), Cooperative Banks, Microfinance Institutions (MFIs) and so on. As on 31st March 2019, 59870318 counts of PMMY loans are sanctioned and the total loan amount sanctioned was Rs. 321722.79 crore.
MUDRA loan is meant for supporting the section of the population who are economically backward and who cannot secure a bank loan otherwise. It is mainly aimed for socio-economically backward people to improve their financial condition, to provide a livelihood for them and improve the rural economy overall. The loan is not meant for personal use.