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:
- Minimum age is 18 years and maximum goes up to 65 years
- Eligible entities: Individuals, startups, business owners, women entrepreneurs and MSMEs
- Applicants with good financial and repayment history shall be preferred
- Applicant with no loan defaults with any bank or NBFC
- Indian Citizens with no criminal background
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Types of Mudra Loans
The MUDRA scheme has been categorised into three categories 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.
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Documents required for Loan Application
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:
- Duly filled application form
- 2 passport size photographs of applicant
- Self-drafted business plan
- 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
- Last 6 months’ income statement
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
Q. What is the minimum and maximum tenure of Mudra loan from Kotak Mahindra Bank?
Ans. The repayment tenure offered by the bank ranges between 12 months to maximum up to 5 years.
Q. How much mudra loan amount can I borrow from Kotak Mahindra Bank?
Ans. There is no minimum loan amount limit to borrow. Whereas, the maximum loan amount is up to Rs. 10 lakh.
Q. How much time does it take for Mudra loan to get approved?
Ans. The loan approval and disbursal shall vary from case to case. However, the average time duration is from 7-10 working days.
Also Read: How long does it take to get a PMEGP loan?
Q. What is the processing fee in Shishu and Kishor categories of Mudra loan?
Ans. There is no processing fee charged by the bank on these two loan schemes.
Q. Is ITR compulsory for Mudra loan?
Ans. No, ITR is not compulsory for startups but is required for existing enterprises with a minimum of 1 year of business existence.