Documents Required for Applying MUDRA Loan
Find below the checklist of the required documents before applying for a Mudra Loan:
- Duly filled Mudra application form
- 2 Passport-sized photographs
- Self-written Business Plan
- Identity Proof: Passport, Voter’s ID card, Driving License, PAN card, Adhaar Card
- Address Proof: Voter’s ID card, Utility Bills (Water/Electricity Bills), Passport, Driving License, Property Papers, Rent agreement
- Income Proof: Last 6 months’ salary slip, Last years’ ITR/Sales Tax returns
- Age Proof: Birth certificate, Class X certificate
- Proof of belonging to SC/ST/OBC Category, if applicable
- Business address and vintage proof, if applicable
- Last 6 months’ bank statement
- Proof of ownership of office/shop/store/godown
- Registrations, Licenses, Permissions, if any
- For a company, need the Memorandum of Association (MoA) and Articles of Association (AoA)
- Furnish pertaining documents in case applicant belongs to SC/ ST/ OBC or any other special category
Loan specific Documents Required:
Apart from the general guideline for MUDRA loan documents, there are a certain specific set of documents for specific purposes. These are:
(1) For applying a Vehicle loan under MUDRA loan, the following documentation is to be submitted:
- Duly filled Application Form of Pradhan Mantri Mudra Yojana
- Duly filled application form for vehicle loan
- Borrower’s passport size photos – 2 photos
- Address Proof
- Identity Proof
- Income Proof
- Bank statement for most recent past six months
(2) For applying a Business Instalment Loan, under PMMY scheme, the following MUDRA loan documents are required:
- Duly filled Application Form of Pradhan Mantri Mudra Yojana
- Duly filled application form of Business Instalment loan
- Address Proof
- Photo ID Proof
- Proof for the establishment
- Proof of ownership of office and/ or residence
- Proof of business continuity
- Trade references
- Proof of qualification
- Bank statement for most recent past six months
(3) For applying Business Loans, for Group and for Rural Business Credits, the following documents are needed:
- Duly filled Application Form of Pradhan Mantri Mudra Yojana
- Duly filled application form of Business Instalment loan
- Duly filled application form for Rural Business credit
- Address Proof
- Photo ID Proof
- Age proof
- Proof of ownership of office or residence
- Continuity of business proof
- Bank statement for past 12 months
- Income tax return documents for most recent 2 years
Therefore, based on the type of business, required documentation are required to be furnished along with the standard set of MUDRA loan documents and business plan.
Micro Units Development and Refinance Agency (MUDRA) loans are offered to individuals and MSMEs by permitted and eligible financial institutions directed as per RBI, such as public and private sector banks, Non-banking Financial Companies (NBFCs), Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), Co-operative banks and Regional Rural Banks (RRBs).
MUDRA scheme was initiated by Government of India under Pradhan Mantri MUDRA Yojana (PMMY) to provide funding support to Individuals, Startups and MSMEs and to promote MSME sector in India. Further discussed are the important documents that are required to apply for Mudra loan under its 3 loan schemes named as Shishu, Kishor and Tarun.
Mudra Yojana Features
- Age Criteria: Minimum 18 years & Maximum 65 years
- Interest rate: Varies from bank to bank
- Minimum loan amount – No Limit
- Maximum loan amount is up to Rs. 10 lakh
- Collateral or Security: Not required
- Repayment Tenure: Up to 5 years
- Availed by Indian Citizen with no criminal background
- Applicants with no past loan defaults shall be considered
Mudra Loan Eligibility
Mudra Loan can be availed by the following entities:
- Individuals and MSMEs
- Artisans, Vendors, Traders, Retailers, Manufacturers
- Sole Proprietorship, Partnership Firms, Limited Liability Partnerships (LLPs), only engaged in trading, manufacturing and services sector
- Small and Micro Manufacturing Units
- Small Scale Industry (SSI) Units
Types of MUDRA loan
Based on the growth phase and development stage of the business as well as the funding requirement, MUDRA loans are available in three categories named as Shishu, Kishor and Tarun. Further mentioned is the sanctioned loan amount offered under each category:
Under SHISHU Category: Loans upto Rs. 50,000
Under KISHOR Category: Loans from Rs. 50,001 to Rs. 500,000
Under TARUN Category: Loans from Rs. 500,001 to Rs. 10,00,000
Achievements under PMMY 2019-2020
As per Mudra’s official website, as on 31 March 2020 in the financial year of 2019-20, total number of PMMY loans sanctioned till date is: 62237981. The amount sanctioned is Rs. 337465.13 Crore and amount disbursed is Rs. 329684.63 Crore.
The emphasis of this scheme is towards the starting of business or entrepreneurship by women, tribal communities, Dalits, and all the backward section of the society. The MUDRA loan is directed to these particular segments and shall enable faster growth of small businesses and assist people who are in lower income bracket to achieve financial support and reach for better livelihood, and thus contributing positively towards overall economy’s growth of the country.
Also Know: What are the Documents Required for New Business Loan
