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Introduction

In an effort to boost the small and micro enterprises sector, the Government of India launched a special financial scheme exclusively for this sector in 2015. This flagship scheme is called Pradhan Mantri Mudra Yojana scheme (PMMY) and is offered by Axis Bank under the Mudra Loan product. The main objective of this scheme is to offer financial assistance to the non-corporate sector engaged in manufacturing, trading and service business. It also offers funding to the allied agricultural activities sector. More details on the loan can be found below.

What is Mudra loan?

Axis Bank Mudra Loan

Mudra stands for Micro Units Development & Refinance Agency Ltd. It is a financial institution set up by the Government of India for developing and offering financial support to micro units. This initiative was announced in the Union Budget of FY 2016 by the Finance Minister. The main objective of Mudra Loan is to provide funds to non-corporate small business sector through various financial institutions like Banks, NBFCs and MFIs.

Mudra Loan is a refinancing product and does not provide financing assistance directly to entrepreneurs or individuals. The loan can be availed from the nearest office or banks, NBFCs etc.  Mudra Loans should not be taken from middlemen or agents as it is not legal. There is an option to apply online for Mudra loan on Udyamimitra portal. The loan can be utilized by micro units for many purposes of income generation and employment in sectors such as manufacturing, services, retail and agriculture allied activities. PMMY loans sanctioned in the financial year 2018-19 alone was approximately 5.9 crores.

Axis Bank Mudra Loan – Features

The key features of Axis Bank Mudra Loan are:

  • The loan is offered to small and micro businesses in the non-farm sector which generate income and create employment.
  • There are different categories of Axis Bank Mudra Loan which is listed below
CategoryLoan Amount
ShishuLoans up to Rs. 50,000
KishoreLoans between Rs. 50,000 and Rs. 5 lacs
TarunLoans between Rs. 5 lacs and Rs. 10 lacs
  • There is no requirement for collateral or security to avail this loan.
  • The loan amount under the Axis Bank Mudra Loan scheme can be availed through term loan, overdraft, cash credit or any non-fund-based facility like letter of credit, bank guarantee etc.

Axis Bank Mudra Loan – Eligibility

The following are the eligibility criteria for applying to Axis Bank Mudra Loan:

  • Any small and micro business involved in non-farm sector activities and is generating income.
  • Any manufacturing, trading and services including allied agricultural businesses can apply for this loan.
  • Credit needs of applicants should be only up to Rs. 10 lacs.

Axis Bank Mudra Loan - Documents Required

The indicative list of documents required for applying to Axis Bank Mudra Loan are:

  • Proof of identity - Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
  • Proof of Residence - Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
  • Proof of SC/ST/OBC/Minority. 
  • Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
  • Applicants should not be defaulter in any Bank/Financial institution. 
  • Statement of accounts (for the last six months), from the existing banker, if any.
  • Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
  • Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
  • Sales achieved during the current financial year up to the date of submission of application.
  • Project report (for the proposed project) containing details of technical & economic viability.
  • Memorandum and articles of association of the company/Partnership Deed of Partners etc.
  • In absence of third-party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.
  • Photos (two copies) of Proprietor/ Partners/ Directors.

FAQs

1. What is Axis Bank Mudra Loan?

Axis Bank Mudra Loan operates under the scheme of Pradhan Mantri Mudra Yojana Scheme wherein non-corporates like small and micro enterprises can receive financial assistance.

2. What are the eligibility criteria to apply for Axis Bank Mudra Loan?

The eligibility criteria for Axis Bank Mudra Loan are:

  • Any small and micro business involved in non-farm sector activities and is generating income.
  • Any manufacturing, trading and services including allied agricultural businesses can apply for this loan.
  • Credit needs of applicants should be only up to Rs. 10 lacs.

3. What is the limit of Axis Bank Mudra Loan?

The loan is available to a maximum amount of Rs. 10 lacs.

4. What are the documents required for applying to Axis Bank Mudra Loan?

The following documents are required for applying to Axis Bank Mudra Loan:

  • Proof of identity 
  • Proof of Residence 
  • Proof of SC/ST/OBC/Minority. 
  • Proof of Identity/Address of the Business Enterprise 
  • Applicants should not be defaulter in any Bank/Financial institution. 
  • Statement of accounts (for the last six months), from the existing banker, if any.
  • Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
  • Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
  • Sales achieved during the current financial year up to the date of submission of application.
  • Project report (for the proposed project) containing details of technical & economic viability.
  • Memorandum and articles of association of the company/Partnership Deed of Partners etc.
  • In absence of third-party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.
  • Photos (two copies) of Proprietor/ Partners/ Directors.

Axis Bank Mudra Loan - Customer Reviews

5 / 5 (2 Reviews)
14 May 2020

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