Financing can be a challenge in case if you are an entrepreneur. Fortunately, there are schemes like the Pradhan Mantri Mudra Yojana that aim to make your entrepreneurial life easier. Under the Mudra scheme, a credit of up to ₹10 Lakhs can be given to small entrepreneurs for capital and operating costs. See whether you are eligible for this credit loan and check for the detailed process to apply for Mudra loan online.
How to Apply for Mudra Loan Online?
The Mudra scheme offers financing to small businesses in the non-corporate and non-farm sectors of the micro, small, and medium enterprises (MSME). Note that Mudra loans can’t be taken for individual needs, and you should have a genuine business plan before applying for the loan.
Interested applicants can apply for Mudra Loan online by visiting the official website of the approved banks. You should fill the online application form for the Shishu, Kishore, or Tarun loan scheme, based on your requirements and the scale of your operations. Below we have given simple steps to apply Mudra loan online:
Steps to Apply for Mudra Loan – Online
Candidates can apply for Mudra loans online by following steps in the official bank/NBFC that offers Mudra loans, as directed by the RBI:
Step 1: Download the loan application form from the official website of the concerned bank
Step 2: Fill in the application form with the complete details and attach relevant documents
Step 3: Submit the application form online at the bank’s official website to get a reference ID number
Step 4: Bank’s representative will connect with you to continue with the loan formalities. So keep the reference ID number
Step 5:Once the loan application form and attached documents are processed and confirmed, the loan amount shall be approved and will be disbursed by the bank to your account.
Steps to Apply for Mudra Loan – Offline
- If you want to file Mudra loan offline – follow the below steps:
- Visit the nearest qualified bank branch to offer MUDRA loan under PMMY
- Fill in and submit the loan application form along with necessary documents at the bank’s counter
- Complete all the further bank formalities and procedures
- After the documents are checked and confirmed, the loan application will be approved
- After the loan approval, the desired amount will get disbursed to the referenced account within specified working days
Documents Required for Mudra Loan Application
Candidates need to collect all the bellow mentioned documents along with the application form to apply for Mudra loan:
- Filled in application form with latest passport sized photographs
- KYC documents of the candidate, for example, Passport, Voter’s ID card, Driving License, Aadhar Card, Utility Bills (Water or Electricity), PAN card
- Documents if the candidate belongs to SC/ST/or some other category
- Business address and vintage proofs
- Business establishment certificate (For existing enterprises)
- Last 1 year Bank’s statement
- Any other documents if required
About MUDRA Yojana under PMMY
Micro Units Development and Refinance Agency (MUDRA) Yojana is a Govt. started collateral free loan scheme under the Pradhan Mantri Mudra Yojana (PMMY) to offer business loans and working capital loans of sum up to Rs. 10 lakh with the repayment tenure of as long as 5 years. It can be availed by people, MSMEs, self-employed, and other business entitles. Nothing nominal processing fees and foreclosure charges are charged by the financial institutions.
Mudra Yojana is significantly classified into 3 loan schemes or categories, named Shishu, Kishor, and Tarun. The following are the loan amount details offered under these schemes:
- SHISHU Loan Scheme: Loans up to Rs. 50,000 (For start-ups)
- KISHOR Loan Scheme: Loans from Rs. 50,001 to Rs. 5,00,000 (For purchasing hardware/machinery, raw materials, the business development for existing enterprises)
- TARUN Loan Scheme: Loans from Rs. 500,001 to Rs. 10,00,000 (For established businesses and enterprises)
MUDRA loan under PMMY can be applied and availed Online/Offline by reaching your nearest and qualified Bank/NBFC. According to RBI, just chose banking and financial institutions are qualified to offer Mudra loans.