Mudra Loan

Mudra Loan : Features

There are four types of Mudra loans depending on the loan amount:

• Shishu: Loans sanctioned under the PMMY scheme up to Rs. 50,000
• Kishore: Loans sanctioned under the PMMY scheme from Rs. 50,001 up to Rs.5 Lakhs
• Tarun: Loans sanctioned under the PMMY scheme Rs. 5,00,001 up to Rs. 10 Lakhs
• Tarun Plus: Loans sanctioned under the PMMY scheme Rs. 10,00,001 up to Rs. 20 Lakhs ( Only for those who have successfully repaid their Tarun category Loans)

• While there is no minimum loan amount under the Mudra loan scheme, the maximum loan amount that can be taken under the PMMY is Rs. 20 lakh.
• Borrowers don’t need to pay processing charges or offer collateral if they avail a Mudra loan.
• As per the PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can include those engaged in allied agricultural activities, such as horticulture and fisheries.
• ROI : As applicable to MSME Sector.

Mudra Loan : Eligibility

• All non-farm enterprises
• Under micro enterprises and small enterprises segment
• Engaged in income generating activities
• Engaged in manufacturing, trading and services
• Whose credit needs are up to Rs. 20 lakh.
• Now allied agriculture activities have also been included under PMMY scheme w.e.f. 01/04/2016.

Mudra Loan : Documentation

• Duly filled Mudra Loan application form.
• Identity proof documents like Aadhaar/PAN/Driving License/Passport/Voter ID/ Government-issued photo ID of all applicants (in case of joint loans).
• Residence proof documents like latest utility bill/ Aadhaar/Voter ID/Passports/bank account statement of all applicants (in case of joint loans).
• Business ID and Address proof documents (Udyog Adhar/Licenses/Registration Certificates/Deed Copy, etc.).
• Latest photographs of the applicant/s.
• Proof of SC/ST/OBC/minority, if applicable.
• Proof of loan requirement, i.e., equipment quotations, vendor details, etc.
• Any other document as per sanction terms

Mudra Loan : Most Important Terms and Conditions (MITC)

Maximum Limit

Rs. 20 lakhs

Repayment Period

Term / Demand - Maximum up to 84 months with suitable moratorium subject to annual review

Working Capital – For 12 months subject to annual review

Margin

As per Banks Guidelines

Bureau Score validation

Minimum bureau score cut off as per Bank’s guidelines

Processing Fee

Nil for all category

Security

Hypothecation of assets created by Banks finance

No collateral

Insurance / Guarantee

Mudra loans are covered under CGTMSE coverage.

Pre-closure charges

Nil