Corporation bank is a public-sector bank that offers Mudra loans under Pradhan Mantri Mudra Yojana (PMMY) at an attractive interest rate of 9.90% onwards. MUDRA (Micro Units Development and Refinance Agency) loan, under PMMY is an initiative to bring all the unbanked people under the mainstream banking sector. Therefore, PMMY targets to facilitate all the promising businesses in the small-scale and micro enterprises throughout the country. Corporation bank, having the need to meet the financial requirements of the people, incorporated PMMY in their banking system.
Corporation Bank Loan Amount under MUDRA Scheme
Under Pradhan Mantri Mudra Yojana, loan is given to the small businesses and Mudra loan is categories under three stages, named as Shishu, Kishor and Tarun. The stages and loan amount given to each stage are as follows:
|Shishu||Rs. 50,000/-||In this stage, entrepreneurs who are in their initiative period of starting a business or who are in need of small amount to start off or expand their business are get benefited.|
|Kishor||Rs. 5 lakh||This stage of MUDRA loan facilitates the entrepreneurs who need loan amount ranging from Rs. 50,000/- to Rs. 5 lakh to start of their business or accelerate the existing one.|
|Tarun||Rs. 10 lakh||This is the highest level of loan amount given to any entrepreneur under MUDRA Loan. If anyone meets the eligibility criteria, he/she can apply under this category.|
Corporate bank charges very nominal interest rate on its mudra loan. Proposed interest rate of Corporation Bank under Pradhan Mantri Mudra Yojana (PMMY) is 9.90% onwards. In this case, MUDRA or RBI or the Government of India doesn’t have any control over the interest rate decided by any lenders.
Benefits of Mudra Loan offered by Corporation Bank
Mudra loan offers some benefits to the borrowers, those are as follows:
- Mudra Scheme ensures financial assistance to the Lower Income Group (LIG) of the country to set up their own business or develop their existing business
- It provides credit to the small-scale businesses and micro enterprises to develop their business
- It opens the access to financial market for the backdropped people who didn’t have any facility before. Therefore, Mudra Loan ensures banking to the unbanked sector
The applicants of PMMY have to meet some eligibility criteria to avail the Mudra loan from Corporation bank. The proposed eligibility criteria of Corporation Bank Mudra loan are as follows:
- Applicant must be Indian citizen
- Applicant’s age has to be above 18 years
- All non-farm enterprises under Micro and small enterprises are eligible for this loan
- Allied agricultural activities are included under this loan
- Applicant should indulge in income generating activities
- Applicant should be engaged in manufacturing, trading and services sectors, only
- Applicant must be of any following category:
Association of Persons
Limited Liability Partnerships
Documents Required for Loan Application
To obtain Mudra Loan under Corporation bank, the applicant has to provide some valid documents for the authenticity check and proceed for the loan sanction process. The required documents are as follows:
- Identity Proof- Self certified copy of Voter’s ID card /PAN card/ Driving License/Aadhaar Card/Passport/Photo Ids issued by Govt. authority etc.
- Residence Proof- Recent telephone bill/Property tax receipt of last 2 months/Electricity bill/Voter’s ID card/Aadhar Card/Passport of Individual or proprietor or partners/Certificate issued by Govt. Authority/Local panchayat/Municipality etc.
- Proof of SC/ST/OBC/Minority, if possible
- Identity/Address proof of the Business Enterprise – copies of relevant licenses/registration certificates/lease or rent agreement/other documents pertaining to the ownership, identity of address of business unit/Udyog Aadhaar Memorandum
- Last 6 months’ statement of existing Bank account
- Last 2 years unaudited balance sheets of the existing units along with income tax or sales tax return. (Applicable for loans of 2 lakh and above)
- Projected balance sheets of start-ups/existing units for 1 year in case of working capital limits. (Applicable for loans of 2 lakh and above)
- Current financial year’s sales achievement till to the application date (in case of existing units)
- Statement of asset and Liability of the borrower, including directors and partners
- Memorandum and articles of association of the company/partnership deed of partners etc. when applicable
Ques.1: What is the interest rate of Corporation bank Mudra Loan?
Ans: Corporation Bank charges minimal interest rate of 9.90% onwards under PMMY scheme.
Ques.2: Is guarantor required for Mudra Loan?
Ans: No guarantor or any collateral security is required for getting loan under PMMY scheme.
Ques.3: How much one can avail under Mudra Laon?
Ans: An applicant under PMMY can avail minimum of Rs. 50,000/- and maximum of Rs. 10 lakh on the basis of ‘Sishu’ and ‘Tarun’ category.
Also Read: What is new MSME loan scheme?
Ques.4: What is procedure to get Mudra Loan?
Ans: To apply for Mudra loan, the borrower has to either visit any nearby private or commercial bank with required documents or can apply online through the bank’s official website.