What is pm mudra loan yojna? 

PM Mudra Yojna is a government scheme launched by the Government of India in April 2015 to provide financial assistance to small business owners or entrepreneurs who may not have access to funding from traditional banking institutions. The acronym MUDRA stands for Micro Units Development and Refinance Agency.


Under this scheme, loans of up to Rs. 10 lakhs are provided to beneficiaries for starting or expanding their small businesses. These loans can be obtained from various financial institutions, including banks, microfinance institutions, and non-banking financial companies (NBFCs).

Pm mudra loan yojna
Pm mudra loan yojna 2023

The primary objective of PM Mudra Yojna is to provide financial support to small businesses, wherein borrowers can benefit from low-interest rates, simplified application processes, and flexible repayment terms. The scheme aims to create job opportunities, facilitate economic growth, and promote entrepreneurship in the country


What is pm mudra loan eligibility? 

  • Any Indian Citizen above 18 years of age can apply for mudra loan yojna
  • The applicant should not be a defaulter of any other bank or financial institution
  • The business or project that needs funding should come under the category of Micro, Small, or Medium Enterprise (MSME)
  • The loan amount required should be within the specified limit of each category (Shishu - up to Rs. 50,000; Kishore - up to Rs. 5 lakhs; and Tarun - up to Rs. 10 lakhs)
  • The borrower should have a well-planned business idea and should be able to provide all necessary documents as proof of the business plan and financial statements.


It is always advisable to check with the official government website or a bank offering PM Mudra Loan to get the latest eligibility criteria and other requirements.


Can I get MUDRA loan without income proof? 

No, it is mandatory to submit income proof to avail MUDRA loan. The income proof serves as a crucial document to evaluate your repayment capacity and creditworthiness. However, the type of income proof may vary depending on the category of the borrower. 


For instance, self-employed individuals may have to submit their ITR or audited financial statements, while salaried individuals may need to produce their salary slips or bank statements.


How can I get Mudra loan easily?

Check your eligibility criteria: 

Firstly, you need to check the eligibility criteria set by the government for the Mudra loan scheme. One can avail of the loan only if they satisfy the eligibility conditions.


Be prepared with necessary documents:

Once you confirm your eligibility, you need to prepare the necessary documents. These documents include Identity proof, address proof, passport-size photograph, business plan, etc.


Approach financial institutions:

After you have all the necessary documents, you can approach financial institutions such as banks, NBFCs, or microfinance institutions, which offer Mudra loans.


Submission of application:

Fill up the application form with all the required details and submit it along with the necessary documents.


Verification and Approval:

The respective financial institutions will verify the documents and your application. If everything is in order, the loan would be approved, and the funds will be disbursed.


Overall, the Mudra loan scheme is easy to access for small entrepreneurs, and it aims to promote entrepreneurship and job creation in the country.


What are the 3 types of loans in Mudra?

  • Shishu loan- for loans up to Rs.50,000.
  • Kishore loan- for loans between Rs.50,000 to Rs.5 lakhs.
  • Tarun loan- for loans up to Rs.10 lakhs.


How long is MUDRA loan repayment?

repayment periods for MUDRA loans may vary depending on the type of loan and the borrower's repayment capacity. Generally, the repayment is between 3 to 7 years for loans under the MUDRA scheme. It is recommended to check with the lender or banking institution for more detailed information on the loan repayment period.


Which documents required for Mudra loan?

  • Application form for the Mudra loan
  • Business plan
  • Identity proof like PAN, Aadhaar, Passport, Voter ID
  • Address proof like Aadhaar, Driving license, Voter ID
  • Business registration proof like MSME registration, Sole proprietorship declaration, partnership deed, etc.
  • Financial statements like ITR, GST Returns, Profit and Loss account, balance sheet, etc.
  • Bank account statement of last 6 months
  • Sales tax certificate, trade license, etc. (if applicable)


It is advisable to check with the lender or the official Mudra loan website for updated and detailed information on the documents required for Mudra loan.


how to apply for mudra loan? 

  • Visit the official website of the Pradhan Mantri Mudra Yojana (PMMY) or Mudra portal and click on 'Apply Now.'
  • Fill in the application form with your personal and business details, which include your name, address, phone number, business type, business turnover, etc.
  • Choose the type of Mudra loan you want to apply for - 'Shishu,' 'Kishor,' or 'Tarun.'
  • Submit the application form along with the necessary documents, such as identity proof, address proof, business registration documents, bank statements, etc.
  • After submitting the application, you will receive an acknowledgement receipt with a unique application number.
  • Track the status of your Mudra loan application through the Mudra portal or by contacting the bank.
  • Once your application is approved, the loan amount will be disbursed to your account.


Note that the eligibility criteria, documents required, and application procedure may vary depending on the bank you choose to apply for a Mudra loan. It is advisable to check with the bank or financial institution for further details.

Read Also 👇