MUDRA Loan is offered by Government of India under the Pradhan Mantri Mudra Yojana (PMMY). MUDRA stands for Micro Units Development & Refinance Agency Ltd. Under this scheme, borrowers can avail of business loans ranging between Rs. 50,000 and Rs. 10 Lakhs under three categories, i.e. Sishu, Kishor, and Tarun.
MUDRA is not a lending institution by itself. It is a scheme that is provided to the people of India through partner banks and non-banking financial companies (NBFCs). The loan is designed to provide financial support using the best possible standards and global practices. The goal of these loans is to aid social and economic development by providing an easy option to obtain financing for various sectors, including manufacturing, retail, service, and allied agricultural activities. These loans are provided to small and micro enterprises that are non-agricultural and non-corporate in nature.
There are different provisions under this scheme, depending upon the requirement of the business and the loan amount. These units can be partnership firms or even single ownership firms. To make sure that financial security is ensured for anyone who wants to set up a new business venture, they do not require any collateral either.
Flexible loan amount: Any non-corporate or non-agricultural firm that is classified as a small or micro-industry can get financing up to Rs. 10 Lakhs based on the requirements for setting up and functioning of the business.
Depending upon the loan amount that is required, there are three types of Mudra Loans that you can apply for.
The different kinds of Mudra Loans are:
| Name of the Loan | Loan Amount |
| Mudra Shishu | Up to Rs. 50,000 |
| Mudra Kishore | Rs. 50,001 – Rs. 5 Lakhs |
| Mudra Tarun | Rs. 5,00,001 – Rs. 10 Lakhs |
Additional Info: Check Startup Business Loan for new businesses.
The terms and conditions of Mudra Loans are as mentioned below:
Mudra Loans can only be availed through partner banks and financial institutions.
Here are the top 5 banks that provide Mudra Loans in India:
Additional Info: Check Mudra loan bank & branches list in detail.
Here is a list of documents required for Mudra Loan:
| Name of Loan | List of Documents Required |
| Shishu |
|
| Kishore |
|
Keep all the necessary documents ready, such as your identity proof, address proof, and business proof, etc.
In order to apply for a Mudra Loan with any bank, the candidate must be fulfill mudra loan eligibility criteria. This loan is available to Non-Coroporate Small business segments that can be a proprietorship or partnership firm. This includes service sectors, manufacturing and retail sectors as well.
When you are looking at applying for loans, especially for business, you need to make sure that you’re able to repay the EMI given the several expenses that you incur each month. The best way to do this is by calculating your EMI beforehand.
An EMI Calculator is a simple financial tool that is available online for absolutely no cost. They save you the trouble of manual calculations and are also more accurate. All you need to do is provide details of your loan such as the loan amount, interest rate, and the tenure of the loan. Based on this the tool applies the formula mentioned above to calculate your EMI.
To get any information about Mudra Loans, you can contact these numbers:
Alternatively, you can also get in touch with the bank that you choose to avail the loan from in order to get any specific information about the loan with respect to the guidelines of the bank.
