How to Apply for Bank Loan under Mudra Yojana

Since the launch of Pradhan Mantri MUDRA Yojana (PMMY) or MUDRA (Micro Units Development Refinance Agency) Bank, many of our blog readers enquired about it with various financial institutions and got weird answers. Some of them are as below:

I have visited bank near to my home for MUDRA Loan and they said atleast 40% security is needed for loan.

Bank manager of XYZ bank said that there is no such scheme.

You will have to mortgage your house for Mudra Loan.

Some one ever dares to say that Modi ji deluded.

So far Rs.24,000 crore have been dispersed across the country under the Centre’s ambitious Pradhan Mantri MUDRA Yojana. Thus, to guide our blog readers and assist them in getting loan under Mudra Yojana, I have decided to provide the tentative list of banks including public, private, cooperative, rural etc. and NBFCs which are presently offering loan under Mudra Yojana. And also where to approach if no one listens to them.

Who are eligible to avail Loans under Mudra Yojana?

Any Indian Citizen who has a business plan or extension plans for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than Rs.10 lakh can approach either a Bank, MFI, or NBFC for availing collateral free loans under Pradhan Mantri Mudra Yojana (PMMY).

How to apply for loan under Mudra Yojana

Read: Mudra Bank Overview

Where to approach for Loans under Mudra Yojana?

Presently loans under Mudra Yojana are offered by:

  • 27 Public Sector Banks
  • 17 Private Sector Banks
  • 31 Regional Rural Banks
  • 4 Co-operative banks
  • 36 Microfinance Institutions
  • 25 Non-Banking Financial Institutions

Types of Loans under Mudra Yojana

Under Mudra Yojana, three types of loans are offered:

  • Shishu : covering loans up to?Rs.50,000/-
  • Kishor : covering loans above?Rs.50,000/- and up to??Rs.5 lakh
  • Tarun : covering loans above?Rs.5 lakh to?Rs.10 lakh
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Application form for Shishu Loan under Mudra Yojana

Atleast 60% of the loans under Mudra Yojana is to be given under Shishu Category and remaining 40% is to be awarded under Kishore and Tarun Catergory.

Currently only Shishu loan application is made available by the Government which can be downloaded by clicking on the image below:

Application form for Shishu Loan under Mudra Yojana

Interest Rates for Shishu Loan under Mudra Yojana

The applicant should not be a defaulter of any banks, NBFCs or Financial Institutions to avail loan under Shishu category.

Further, the interest rates on loans will be 1% per month i.e. 12% per annum.

Features of Shishu Loan
  • No collateral security is required.
  • No loan processing fee.
  • Repayment of loan in maximum period extended up to 5 years.
  • Working capital loans will be given through MUDRA cards.

Mudra Yojana Rupay Debit Card

Mudra Cards:
  • Issued by the Banks either directly or in association with MFIs.
  • Issued as RuPay Debit Card
  • Cash can be withdrawn from any ATM or purchases can be made either online via e-commerce or at POS machines.

Documents required for Shishu Loan (may be same for Kishore and Tarun Loans also)

Following are the documents that are to be submitted along with the MUDRA loan application form;

  • Proof of Identity: Self-attested copy of Voter ID card / driving license / PAN card / Aadhar card / Passport / Photo ID issued by Govt. authority etc.
  • Proof of Residence: Recent telephone bill / electricity bill / Property tax receipt (not older than 2 months) / Voter ID card / Aadhar card / Passport / Bank statement duly attested by Bank Official etc.
  • Loan applicants recent Passport size Photographs (2 copies).
  • Quotation of Machinery / other items to be purchased(if any).
  • Name of supplier / details of machinery / price of machinery and / or items to be purchased.
  • Proof of Identity / Address of Business Enterprise – Copies of relevant Licenses / Registration Certificates / other documents pertaining to the ownership identity and address of business unit(if any).
  • Proof of category like SC / ST / OBC / Minority etc.,?(if applicable).

For details regarding loans above Rs.50,000 i.e. loans under Kishore and Traun category under PMMY, you may have to contact your nearest bank branch.

Where to approach for help?

You can approach to the local branch of the above listed banks in your region for help related to Mudra Yojana.? You can also contact to Mudra Office at located in Mumbai or to the Mudra Officers at:

MUDRA Yojana Officers Contact List

You can also approach to the Nodal Officers at various SIDBI Regional offices/Branch Offices which are referred?as a ?first contact persons? for loans under MUDRA yojana.

The borrower may also visit MUDRA website,?mudra.org.in?and can send any query/suggestion to help@mudra.org.in.

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(Picture courtesy Mudra.org.in)

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