Kotak Mahindra Bank is also a provider of Mudra loans under PMMY along with several other banking and financial products. Under PMMY (Pradhan Mantri MUDRA Yojana), the Government of India launched the Mudra Yojana to offer credit facilities to individuals, self-employed professionals, MSMEs via Banks/NBFCs and other financial institutions. The maximum loan amount offered is up to Rs. 10 lakh with repayment tenure of up to 5 years. The interest rate offered by Banks under Mudra Yojana shall vary and depends on the applicant’s profile, desired loan amount and repayment tenure.
Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs – February 2023
|Axis Bank||14.95% - 19.20% p.a.||Apply Now|
|Bajaj Finserv||9.75% - 25% p.a.||Apply Now|
|Flexiloans||1% per month onwards||Apply Now|
|HDB Financial Services Ltd.||Up to 36% p.a.||Apply Now|
|HDFC Bank||10% - 22.50% p.a.||Apply Now|
|IDFC First Bank||15% p.a. onwards||Apply Now|
|Indifi||1.50% per month onwards||Apply Now|
|Kotak Mahindra Bank||16% - 19.99% p.a.||Apply Now|
|Lendingkart||1% - 2% per month||Apply Now|
|Mcapital||2% per month onwards||Apply Now|
|NeoGrowth Finance||19% - 24% p.a.||Apply Now|
|Tata Capital||12% p.a. onwards||Apply Now|
|UGRO Capital||14.90% p.a.||Apply Now|
Note: Business loan interest rates are updated as on February 2023.
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:
- The minimum age is 18 years and the maximum goes up to 65 years
- Eligible entities: Individuals, startups, business owners, self-employed professionals, women entrepreneurs, and MSMEs
- Applicants with good financial and repayment history shall be preferred
- Applicant with no loan defaults with any bank or NBFC
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Types of Mudra Loans
The MUDRA scheme has been categorized into three categories as per the entrepreneur’s stage of business. These stages are named 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 the MUDRA scheme will cover the loan amount above 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 start-ups that want to open their business at a given limit or require funding for the expansion of their existing business.
The Tarun stage of the 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 the MUDRA scheme. This loan is for those who already have a business and now 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 a MUDRA loan. So the documents required for submitting to the bank to avail MUDRA loan are as follows:
- Duly filled application form with passport-sized photographs of the applicant
- KYC documents of the applicant: Age, Address, Identity & Income proofs
- Business address proof
- Last 12 months’ bank statement
- Business establishment certificate
- Proof of belonging to SC/ST/OBC category, if applicable
- Any other document required by the bank
Benefits of the MUDRA Scheme
The MUDRA scheme will help all small and medium business owners to gain easy access to finance for the development and growth of their businesses. Some of the benefits of this MUDRA scheme is as follows:
- To create easy access to finance for the unbanked and also help to lower their cost of finance
- To assist the Lower Income Groups (LIGs) and unprivileged section of the country by developing and setting up their own businesses
- To help the micro and small-scale enterprises grow and develop their industries
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Q. What is the minimum and maximum tenure of the Mudra loan from Kotak Mahindra Bank?
Ans. The repayment tenure offered by the bank ranges from 12 months to a maximum of 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 the 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 the 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 a 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.