Interested in financial products
CreditMantri
Processing

Mudra loan is a Government of India undertaking, which was started to provide financial support to small businesses in the country. Under this scheme, loans are provided by banks to non-corporate, non-farm sectors whose credit needs are upto Rs. 10,00,000.

MUDRA loan is a Government of India undertaking, which was started to provide financial support to small businesses in the country. Under this scheme, loans are provided by banks to non-corporate, non-farm sectors whose credit needs are upto Rs. 10,00,000.

Mudra loan is a Government of India undertaking, which was started to provide financial support to small businesses in the country. Under Mudra Loan Yojana, three different types of loans are provided:

The MUDRA loan was introduced to ensure the balance of employment created among small vendors, shopkeepers and other people who are running their own small businesses. These loans provide funding for working capital through MUDRA cards. A MUDRA card is a debit card that is issued against the MUDRA loan that you have availed. This will be issued for the working capital portion of the loan.

Usually financial institutions in India adopt asset based lending approaches that ask for collateral as security for loans. But micro enterprises are unable to provide collateral, hence MUDRA loans have been made collateral free as per the RBI norms.

If you are applying for a MUDRA loan, you would need 2 years of Income Tax Returns(ITRs) to be submitted as proof. While applying for a business loan, your eligibility and quantum of the loan would depend on your income which is established through filed ITRs. ITRs give you a detailed picture of your total income and the taxes paid during a year. 

Pradhan Mantri MUDRA Yojana is a scheme that was launched by the Prime Minister of India for providing loans to micro enterprises. This scheme is aimed to increase the entrepreneurial activities of small businesses. These loans are classified as MUDRA loans and are given by commercial banks, NBFCs, MFIs etc. To avail a MUDRA loan you can approach your lender or you can apply through an online portal called UdyamiMitra. Under PMMY, MUDRA has created three products: Shishu, Kishore and Tarun.  

The Pradhan Mantri Mudra Yojana(PMMY) scheme doesn’t provide subsidies for any loans availed. However it would be an exception, if the loan proposed by the applicant is linked to a government scheme and given a government capital subsidy. This will be eligible under the PMMY. A subsidy is money provided by the government to a business. The price of the product made by the business will be reduced. And this will be done for the welfare of the society. 

The Pradhan Mantri MUDRA Yojana (PMMY) provides loans to small businesses for a maximum amount of Rs. 10 lakhs. You can apply for a MUDRA loan either directly from any bank, NBFC, MFIs, etc. Borrowers also have the option of applying through an online portal. To apply for a MUDRA loan you would need to keep your necessary documents ready before approaching your financial institution. Fill in the loan application form and submit it to your lender. The Shishu scheme covers loans up to Rs. 50,000 for startups. Kishore scheme covers loans up to Rs. 5 lakhs for established businesses. Tarun scheme covers loans of up to Rs. 10 lakhs for well established businesses who are eligible.

Any Indian citizen having a business plan for a non-farm income generating activity is eligible for a MUDRA loan. Businesses from the manufacturing sector or the service sector needing credit up to Rs. 10 lakhs can approach either a bank or an NBFC for availing a MUDRA loan under Pradhan Mantri MUDRA Yojana(PMMY). The terms and conditions of your lender would have to be followed for availing a loan under PMMY. 

×Thank you! Your question will be reviewed and posted shortly.

Post A Question

CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.