Kotak Mahindra Bank, being one of the leading private sector banks offers Mudra loans to its customers along with other banking and financial products. Under PMMY (Pradhan Mantri MUDRA Yojana), Government of India launched MUDRA scheme to provide funding to micro and small scale industries via banks and NBFCs, focussing on their growth and development. Usually, small and micro industries face money crunch and are unable to avail regular loans from financial institutions. The interest rate offered may depend on the applicant’s profile and loan amount.
The MUDRA scheme has certain eligibility criteria and will be provided to those who fall under this eligibility. The eligibility criteria for MUDRA loan in Kotak Mahindra bank will be as follows:
- Small manufacturing units
- Textile sector activities that include The Artisans who want to establish, to expand or to start business in stitching work, embroidery, etc.
- Service sector activities, such as Chemist, dry cleaning, salon, boutique, photocopying facility etc.
- Food sector activities, including selling vegetables and fruits, setting up business or purchasing machineries for making of bread, etc.
- Transport sector activities like purchase of vehicles for carriage of passengers or goods. Vehicles like Small goods transport vehicle, e- rickshaw, taxi, auto rickshaw etc.
- Agriculture sector activities to establish; to start or to expand an agriculture business, such as a dairy farm, apiary, a poultry farm, a livestock farm etc.
Types of Mudra Loan
The MUDRA scheme has been categorised into three stages as per the entrepreneur’s stage of business. These stages are named as Shishu, Kishor and Tarun which are explained below:
The Shishu stage of MUDRA scheme will cover up to Rs. 50, 000 for all small units and institutions. This loan is basically made for those who want to open and start their own business.
The Kishor stage of MUDRA scheme will cover the loan amount above the Rs. 50, 000 and up to Rs. 5 lakh. This loan is for those who already have a business and wants some extra funds to expand their business or for other expenses. This loan is also for the start-ups who want to open their business in given limit or require funding for the expansion of their existing business.
The Tarun stage of MUDRA scheme will cover the loan amount above Rs. 5 lakh and up to Rs. 10 lakh. This is the maximum limit and amount that would be provided by MUDRA scheme. This loan is for those who already have business and now they want to set a benchmark in their business. It is also for those who want to start their own start- ups this is the maximum limit given by MUDRA.
Benefits of MUDRA scheme
The MUDRA scheme will help all the small and medium business owners to gain easy accesses to finance for their development and growth of their business. Some of the benefit of these MUDRA scheme is as follows:
- To create an easy access to finance for the unbanked and also help to lower their cost of finance
- To assist the Lower Income Groups (LIGs) and under privileged section of country by developing and setting up their own businesses
- To help the micro and small scale enterprises grow and develop their industries
The documents will be needed to verify and after verification the bank will provide you with MUDRA loan. So the documents required for submitting in bank to avail for MUDRA loan is as follows:
- 2 passport size photographs of applicant
- Address proof
- Business Vintage proof
- Business identity proof
- Identity proof like Aadhaar card, PAN card
- Business address proof
- Proof of continuity of business
- Income tax returns of 2 years
- Business registration certificate
- Details regarding the names of suppliers and machineries, also mention the vendor’s name and quotation will be required for the machineries which are to be bought.
- KYC documents
- Last 6 months’ income statement
Also Read: How to Apply for Mudra Loan Online?