The PMMY (Pradhan Mantri MUDRA Yojana) was introduced in April 2015 to help businesses and self-employed individuals avail loans at attractive interest rates. The first step to securing MUDRA loans is to check your eligibility. Once you have verified that you’re eligible, you can follow the steps listed below to secure the loan.
Step 1: Prepare the necessary documents
Applying for loans under the MUDRA scheme is hassle-free and requires minimal documentation. Applicants have to furnish only the basic documents like:
Proof of Address - It can be any one of the following: telephone bills, water bill, electricity bill, gas bill, etc.
Proof of Business - It includes business registration certificate, partnership deed, etc.
Step 2: Approach your Preferred Lender
Almost all financial institutions in India including - public sector banks, private sector banks, co-operative banks, regional rural banks, MFIs and NBFCs offer loans under the MUDRA scheme. You can approach your preferred lender and state your requirements. Some lenders even offer online applications.
Step 3: Fill the Loan Application
Fill the loan application providing the necessary details - personal information, business information, required loan amount, preferred tenure, etc.
Submit the filled application to the lender. The lender verifies the details provided along with the documentation. Once approved, the loan amount is disbursed directly to your bank account.
Additional Reading: Mudra Loan Application Form