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Introduction

The Micro, Small and Medium Enterprises (MSMEs) segment in India is the second largest in the world after China. The segment is involved in manufacturing and offering services in products right from traditional nature to high-technology driven ones. The MSME sector in the country is expected to grow in leaps and bounds with the support of the Government launched campaign of “Make in India” and high growth in the FDI flows. MSMEs are broadly classified into manufacturing and services wherein investment amounts are different and annual turnovers vary. The Government is trying to modernize this segment and bring it up to level of players in the global market.

In order to support the small and micro enterprises financially, the Government launched the Pradhan Mantri Mudra Yojana (PMMY) for the non-farming and non-corporate MSMEs. One can avail this loan through Bajaj Finserv under the Bajaj Finserv Mudra Loan scheme. More details on the loan can be read below.

What is Mudra Loan?

Bajaj Finserv Mudra Loan

Pradhan Mantri Mudra Yojana (PMMY) has launched a funding scheme that offers assistance to non-farm income producing companies in the manufacturing and services sector. The credit requirement of these entities does not cross Rs. 10 lacs. The Mudra Loan is refinancing assistance offered by banks, NBFCs, MFIs and such other institutions. There are 27 public sector banks, 17 private sector banks and 25 Micro Finance Institutions that offer this loan on the basis of eligibility criteria.

Mudra Loan Yojana Schemes

Mudra Loan offers different loans under various schemes to suit different needs.

  • Credit for Micro Business:  The main objective of this scheme is increasing the general population into the business segment. The loan under this scheme offers assistance to the textile sector, food producing and land transport.
  • Women Enterprise Programme: This scheme is targeted to help women entrepreneurs and funds are provided at affordable interest rates with a concession up to 0.25%.
  • Refinance scheme for banks: Under this scheme, banks are refinanced for loans up to Rs. 10 lacs that have been extended to MSMEs in the manufacturing and service sector.
  • Mudra Card: A Debit card related to Mudra Loan is issued. The beneficiaries are able to access working capital, withdraw cash from ATMs and make payments.
  • Equipment Finance Scheme: This scheme specifically helps the MSMEs to expand their operations and purchase quality equipment. The micro business units are able to increase their production and continue to make their businesses more sustainable.

Bajaj Finserv Mudra Loan – Features

Bajaj Finserv Mudra Loan is available to non-farming and non-corporate micro and small enterprises. Some of the key highlights of this loan are:

  • The maximum loan amount that can be availed is Rs. 10 lacs.
  • Both new and existing enterprises can apply for Bajaj Finserv Mudra Loan.
  • The repayment period varies between 3 and 5 years.
  • There are different categories of loan amount:
CategoryLoan Amount
Shishu – New business or early stages of operationLoans up to Rs. 50,000
Kishore – Additional financing for operationsLoans between Rs. 50,000 and Rs. 5 lacs
Tarun – Fully established businessesLoans between Rs. 5 lacs and Rs. 10 lacs
  • There is no processing fee for loans under the categories of Shishu and Kishore. However, under the category of Tarun, 0.5% of the loan amount is charged as processing fee.
  • The interest rate of the loan varies on the type of loan taken.
Loan TypeInterest Rate
Shishu (up to Rs. 50,000)Ranges from 1% to 12% per annum
Kishore (Rs. 50,000 up to Rs. 5 lacs)Ranges from 8.6% to 11.15% per annum
Tarun (Rs. 5 lacs up to Rs. 10 lacs)Ranges from 11.15% to 20%

Bajaj Finserv Mudra Loan – Eligibility

The eligibility criteria for Bajaj Finserv Mudra Loan are:

  • Small manufacturers
  • Artisans
  • Fruits and vegetables vendors
  • Shopkeepers
  • Agricultural business-like livestock, poultry etc.

Bajaj Finserv Mudra Loan - Documents Required

In order to apply for Bajaj Finserv Mudra Loan, the following documents are required to be submitted:

  • Self-attested photocopies of:
  • Aadhaar card
  • PAN
  • Voter’s ID
  • Driving License
  • Passport
  • Valid photo ID card issued by a Government employer

Proof of address documents required for MUDRA loan include:

  • Utility bill (electricity, telephone, water, gas, post-paid mobile phone, property tax)
  • Aadhaar card
  • Passport
  • Voter’s ID
  • Bank passbook or latest bank account statement attested by officials.
  • Domicile certificate or certificate issued by a local government body (Municipality, Gram Panchayat, etc.)

Proof of business documents for MUDRA loan:

  • Certificate, license, registration, or any other documents confirming the business existence, address, and ownership.
  • Other MUDRA loan documents required
  • Photos of the business owners, partners, etc.
  • Proof of SC, ST, OBC, etc.
  • Balance sheet of last 2 years
  • Income/sales tax returns
  • Bank account statements
  • Partnership deed or memorandum and articles of association
  • Sales made during the current FY and up to the loan application filing
  • Estimated balance sheet for 1 year or for the loan tenor
  • Business report certifying economic and technical viability of the business

FAQs

1. What is Bajaj Finserv Mudra Loan?

Bajaj Finserv Mudra Loan offers financial assistance to small and micro enterprises engaged in non-farming activities.

2. What are the different categories of Bajaj Finserv Mudra Loan?

Bajaj Finserv Mudra Loan is available in different categories to cater to different needs.

CategoryLoan Amount
Shishu – New business or early stages of operationLoans up to Rs. 50,000
Kishore – Additional financing for operationsLoans between Rs. 50,000 and Rs. 5 lacs
Tarun – Fully established businessesLoans between Rs. 5 lacs and Rs. 10 lacs

3. Who are eligible to apply for Bajaj Finserv Mudra Loan?

The following businesses are eligible to apply for Bajaj Finserv Mudra Loan:

  • Small manufacturers
  • Artisans
  • Fruits and vegetables vendors
  • Shopkeepers
  • Agricultural business-like livestock, poultry etc.

4. Is there a processing fee charged while applying for Bajaj Finserv Mudra Loan?

For loans under the category of Shishu and Kishore, there are no processing fees applicable. For loans under the category of Tarun, 0.5% of the loan amount is charged as processing fees.

Customer Reviews

0 / 5 (2 Reviews)
14 May 2020

Usefulness of information,GOOD

13 May 2020

Usefulness of information,Credit Report Analysis,great Info

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