Pradhan Mantri MUDRA Yojana Application Form – MUDRA Loan Interest Rate

By | December 4, 2017

Pradhan Mantri MUDRA Yojana Online Apply – MUDRA Loan Interest Rate

MUDRA Loan Online Apply: Small-scale businesses are the backbone of Indian economy. Many times small entrepreneurs find it hard to meet financial requirement needed for the business. They find it difficult to get access to banking services, loans, insurance etc. Here we will discuss on PM Mudra yojana application form and loan interest rate. Pradhan Mantri Madras Loan Yojana is a great endeavor to bring the unbanked small business community under the mainstream banking.

MUDRA Yojana

Pradhan Mantri Madras Yojana, PMMY, is a flagship scheme from Government India aimed to create an inclusive, sustainable and value-based entrepreneurial environment for small and independent businesses in India.

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The Yojana was launched on 8th April 2015 by Pradhan Mantri and it is under his ages. It is a loan scheme that facilitates microcredit up to ₹ 10 lakh to small business owners. It will help increase overall output and create new jobs. The Yojana is slated to benefit over 58 million small business owners.

Let’s check Pradhan Mantri Mudra yojana application form and loan interest rate. Micro Units Development and Refinance Agency Limited, MUDRA has been set up for implementing this scheme. It will refinance all banks, other financial institutions which lend to micro / small business entities.

The MUDRA loans are given to non-farm income-generating businesses that include manufacturing, trading, and services. The loans are provided by all the Public Sector Banks, Cooperative Banks and Regional Rural Banks covered under refinance and/or credit enhancement products of MUDRA.

Main features of the Pradhan Mantri Madras Yojana

Small business owners can avail loan from ₹ 50,000 to ₹ 1,000,000. There are three products:

Shishu: This loan is for those who want to start up a small business. The loan amount is up to ₹ 50,000 for providing financial support to cover the setup cost.

Kishor: This aims at already existing businesses which lack exposure. The loan amount can be between ₹ 50,000 to ₹ 500,000. It helps businesses to improve supply and reach out to more customers.

Tarun: It is targeted to already existing businesses help scale new levels. The loan amount can be between ₹ 500,000 to ₹ 1000,000.

Interest Rate

Interest rates offered are very affordable. The rate varies according to different MUDRA loan schemes. Following given are some of the details regarding interest rates.

  • If the loan is granted under MUDRA Shishu scheme, then the interest rates are between 10%-12%.
  • For the loan availed under MUDRA Kishor scheme, the interest rates vary between 14%-17%.
  • If the loan is offered under MUDRA Tarun scheme, the interest rate starts from 16% and varies from the scheme as well as the bank to bank.

How to Apply for MUDRA Loan

Eligibility criteria to avail MUDRA loan

  • The person must be the Indian citizen.
  • Owns a micro or small business in the rural sector.

You have to go to the nearest bank listed under the MUDRA scheme and approach the loan officer there. Provide your business details and the bank will figure out which type of MUDRA loan can be offered for your business.

Fill up MUDRA form and a form for opening a current business account and submit it along with necessary documents. Your application will be processed within few business days and you will be notified accordingly.

The loan approval doesn’t require any collateral and if you have good business credit history it won’t be difficult to get the loan approved.

Documents Required:

  • Identity card and proof of residence and business establishment
  • Balance sheet and income tax/sales tax returns of last three years if it is applicable.
  • You also need to submit detail and two photos of proprietor/partner/director etc.
  • Details of assets and statement of liabilities of guarantors along with their income tax returns of last three years.
  • If the business premises are on lease or rent, then copy of the agreement.
  • Details of registration and registration forms of SSI/MSME if it is applicable to your business.
  • Projected balance sheet for next two years as well as the projected balance sheet for the term of the loan if the loan is above ₹ 200,000.

Since its inception, MUDRA Yojana has captured the imagination of small enterprises and has witnessed a tremendous growth. It has been a great success in fulfilling the vision of financial inclusion of the small and micro businesses!

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