Pradhan Mantri Mudra Yojna

 Updated on Dec. 7, 2021, 6:04 a.m.

Pradhan Mantri Mudra Yojna or Mudra scheme was launched to provide financial assistance to micro enterprises sector. Micro sector is the main focus of Mudra scheme and loan upto Rs. 10 lakhs is provided to very small business units. Mission of Mudra scheme is, To create an inclusive, sustainable and value based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security.

Mudra scheme was started to provide following facilities to micro industry.

  • Technology assistance
  • Refinance for Micro units
    • Shishu Loan upto Rs. 50,000
    • Kishor Loan upto Rs. 5 Lakhs
    • Tarun Loan upto Rs. 10 Lakhs
  • Credit Guarantee for Mudra Loan
  • Development and Promotional Support
    • Sectoral Development
    • Financial Literacy
    • Institution Development

Who can apply for Mudra Loan?

Any individual starting or running a micro unit can apply for Mudra loan. Mudra scheme was launched for Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas. Any Indian Citizen, who is eligible to avail of loan and has a business plan for income generating activity, can avail of MUDRA loan.

Below are some of people who can apply for Mudra Loan:

  • Small Traders and manufacturers
  • Artisans
  • Fruit and Vegetable dealers
  • Shopkeepers and Wholesalers
  • Farmers

These are only for example and anyone starting a micro unit can apply for Mudra loan.

Documents required for Mudra Loan

Documents required for applying for Mudra loan depends on lending bank. Every bank has different rules regarding documents and information required for providing loans.

However common documents required for Mudra loan are:

  • Mudra application form
  • BIL application form
  • Photo identity proof
  • Address proof
  • Establishment proof
  • Bank statement (last 6 months)
  • Ownership proof of residence/office
  • Proof of continuity of business
  • Proof of qualification
  • Trade references
  • 2 years ITR
  • CA certified financials

What is Mudra Card?

Mudra card is a debit card issued to manage working capital requirement of micro units. Borrowers can withdraw multiple amounts using card, whenever required. Interest is charged only on amount withdrawn.

Mudra Card

Mudra card can be used in any ATM or any card swipe machine. It is a Rupay card and can be used to not only withdraw money but also make online payments.

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