Mudra stands for Micro Units Development and Refinance Agency Ltd. This organization has been established by Government of India for development and refinancing activities relating to micro units. Simply with the vision of – ‘Funding the Unfunded’. Small organizations, companies, startup entrepreneurs of micro units in India face a lack of formal financial support in starting or growing stage of their small businesses.
Mudra bank loan initiative has been taken to provide low-cost funding for MFI (Micro Finance Institutes). MUDRA would be responsible for refinancing all financiers or financial institutions engaged in the financing of Small Businesses, Societies, Trusts Section 8 Companies, Co-operative Societies, Small Banks, Scheduled Commercial Banks and Rural Banks which are in the business of lending to micro or small businesses engaged in manufacturing, trading and services activities.
Different Categories of Mudra Bank Loan
According to the growth stage and requirement of finance, Mudra bank loan is provided currently under three schemes in Pradhan Mantri MUDRA Yojana. The three schemes are as following:
Shishu: Loan of up to Rs.50,000 This category is only for startups, those businesses that have been just started and looking for seed funding.
Kishor: Loans of above Rs.50,000 to Rs.5 lakhs This category is for those who started the business but yet not established fully.
Tarun: Loans of above Rs.5 lakhs to Rs.10 lakhs. Every small business that has been initiated and established and require funding to grow their business will fall in this category.
Mudra Bank Loan Eligibility Criteria
Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than 10 lakh can approach either a Bank, MFI, or NBFC for availing of MUDRA loans under Pradhan Mantri Mudra Yojana (PMMY).
The terms and conditions of the lender would have to be followed for availing of loans under MUDRA. The lending rates are as per the RBI guidelines issued in this regard from time to time. To know more detail, you can log on @ http://www.mudra.org.in/.
How To Apply Mudra Bank Loan | Basic Guide
First of all, you must know Mudra bank is not a separate bank like SBI or ICICI. Basically, it is a finance scheme of the Government to provide a business loan to small business entrepreneurs in India.
Therefore, to get Mudra bank loan you will need to contact your nearest public or private bank. To contact a Mudra bank loan nodal officer (State Wise), you can Click Here. Following are the steps to apply for Mudra Bank Loan:
- MUDRA Loan Application
- Business plan
- Proof of Identities like PAN / Drivers License / Aadhaar Card / Passport and more.
- Residence proof like recent telephone bill/electricity bill or property tax receipt and more.
- Applicant’s recent photograph less than 6 months old
- Quotation of machinery or other items to be purchased
- Name of supplier or details of machinery or prices of machinery
- Proof of identity/address of the business like tax registration, business license, and more.
- Proof of category like SC/ST/OBC/Minority, if applicable
There is no processing fee or collateral security needed in getting Mudra bank loan.
Key Responsibilities Of Mudra Bank Loan
List Of Top Public Sector Banks Providing Mudra Bank Loan
- UCO Bank
- State Bank of India
- Canara Bank
- Bank of India
- Syndicate Bank
- Indian Bank
- Punjab National Bank
- Bank of Baroda
- Central Bank of India
- Allahabad Bank
List Of Top Private Sector Bank Providing Mudra Bank Loan
- HDFC Bank
- IndusInd Bank
- Axis Bank
- ICICI Bank
- Ratnakar Bank
- Yes Bank
- Karnataka Bank
- Karur Vysya Bank
- South Indian Bank
- Lakshmi Vilas Bank
Mudra Bank Loan Official Site: http://www.mudra.org.in/