Yes Bank has been recognised as one of the leading and fastest-growing banks in India. Yes bank has incorporated many governmental schemes to facilitate the underprivileged sector of India. Pradhan Mantri Mudra Yojana (PMMY) is one such scheme, through which Yes bank provides Mudra loans to its customers and aims at the growth and development of rural and urban areas. Mudra loan scheme is an initiative by the Government of India by which the maximum loan amount offered goes up to Rs. 10 lakh.
Yes Bank Mudra Loan Interest Rate
Pradhan Mantri Mudra Yojana (PMMY) is the striving project of Indian Government where it ensures banking to the unbanked people. Many nationalised banks, commercial banks, NBFCs are facilitating many small-scale entrepreneurs under this governmental scheme. Mudra loan is categorized in three major categories and the loan amount offered under each category is further explained.
|Shishu||Up to Rs. 50,000/-|
|Kishor||Above Rs. 50,000/- to up to Rs. 5 lakh|
|Tarun||Up to Rs. 10 lakh|
Usually, small to medium-range business owners or entrepreneurs get benefited from these categories. This Mudra scheme is basically tailored to help people to start something of their own and thereby create job opportunities for others. It also aims at bringing a large number of people under the institutional financial structure.
Under the Mudra loan’s ‘Shishu’ category, the interest rate given by the government is 1% per month or 12% per annum. In other categories, the rate depends on the respective banks and financial institutes. Yes bank usually charges a minimal amount of interest rate on Mudra loan.
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Features and Benefits of Yes Bank Mudra Loan
Yes bank is offering the customers some features and benefits under the PMMY scheme. They are as follows:
- No or the least amount of processing fees are required according to the different categories
- No collateral required
- For the ‘Shishu’ plan, the repayment period is of 5 years, which varies from bank to bank in the case of other plans
- The applicant should not be a defaulter of any bank/financial institute
- It provides a ‘Mudra card’ to its account holder
- It ensures financial assistance to the needed
To avail Mudra loan, the applicant has to meet some eligibility criteria as follows:
- Applicant must be an Indian citizen
- Applicant’s age has to be above 18 years old
- The borrower should indulge in income-generating activities
- The applicant must fall under the following categories:
- Any individual
- Partnership farms
- Small manufacturing units/food service units
- Small industries
- Service sector units
- Agricultural sector enterprise
Documents Required for Loan Application
Before proceeding with applying for the Mudra loan from Yes Bank, the applicant should follow the checklist of the documents required. The required documents for the Yes Bank Mudra loan are as follows:
- Identity and signature proof
- Residence and business address proof
- SC/ST/OBC/Minority proof
- Last 3 years’ balance sheets of the units along with income tax/sales tax return (applicable for loans of Rs. 2 lakh or above)
- Memorandum and articles of association of the company/partnership deed of partners
- SSI registration, if applicable
- If the business premise is on rent, the rent agreement and clearance from the pollution control board
- Assets and Liabilities statement of promoters and guarantors along with latest income tax returns
- Projected balance sheets for the next two years in case of working capitals limits and for the period of the loan in case of term loan (applicable for loans of Rs. 2 lakh and above)
- Profile of the unit including names of promoters, other directors in the company, undertaken activities, addresses of all offices and plants, shareholding pattern, etc.
- Xerox of lease deeds/title deeds of all the properties being offered as primary and collateral securities
Ques.1: Is there any security or collateral needed to avail Yes bank Mudra Loan?
Ans: No. there is no need to show any kind of security or collateral to avail the Mudra loan from Yes Bank.
Ques.2: Who is eligible for a Mudra loan?
Ans: Anyone who are engaged in small business, like small-scale manufacturing unit owner, truck operators, food business owners, machine operators, or the same, is eligible for a Mudra loan.
Ques.3: What is the maximum amount offered by Yes Bank under a Mudra loan?
Ans: Maximum amount offered by Yes Bank is Rs. 10 lakh under the category of the ‘Tarun’ scheme of PMMY.
Ques.4: Is age a factor in avail Yes Bank Mudra Loan?
Ans: Yes. According to the PMMY, the age of the applicant has to be 18 years at the time of applying for the loan and should not exceed 65 years at the time of loan maturity.
Ques.5: What is the loan tenure for Yes bank Mudra loans?
Ans: For the ‘Shishu’ plan, the loan tenure is 5 years, which varies from bank to bank in the case of other categories.