Mudra Loan: Features
Objective of Mudra Yojana
Types of Mudra Loans
Mudra Loans Interest Rates
Nature of Assistance Under Mudra Yojana
Eligibility for Mudra Yojana
Sectors and Activities Covered Under Mudra Yojana
How to Apply for a Mudra Loan?
What Documents are Required to Apply for a Mudra Loan?
What is a Mudra Card?
FAQs on Mudra Yojana
Scheme Details
Key features of the Pradhan Mantri Mudra Yojana (PMMY) for FY 2025-26.
Loan amount ranges from ₹50,000 to ₹20 lakh.
No collateral required for loans.
Processing fee is NIL for Shishu loans; varies for Kishore and Tarun.
Repayment Terms
Understand the repayment terms under the Mudra Yojana.
Repayment period varies from 1 to 7 years.
Flexible repayment options based on lender's terms.
Early repayment options available without penalties.
Interest Rates
Interest rates applicable under the Mudra Yojana.
Interest rates vary by bank and applicant's credit history.
State Bank of India offers rates starting at 12.15% p.a.
Interest rates are subject to change as per RBI guidelines.
Official Resources
Access official resources for more information.
Visit the official website at www.mudra.org.in.
Contact helpline numbers 1800 180 1111 or 1800 11 0001.
Check updates on the Ministry of Finance's notifications.
Primary Objectives
The key objectives of the Mudra Yojana.
Facilitate financial inclusion for micro-enterprises.
Support the growth of small businesses and startups.
Provide easy access to credit for underserved segments.
Regulatory Goals
Regulatory objectives under the Mudra Yojana.
Register and regulate Microfinance Institutions (MFIs).
Ensure compliance with financial guidelines.
Promote transparency and accountability in lending.
Economic Impact
Economic objectives of the scheme.
Boost employment through entrepreneurship.
Enhance the contribution of MSMEs to GDP.
Reduce dependency on informal lending sources.
Social Objectives
Social impact goals of the Mudra Yojana.
Empower women entrepreneurs with financial support.
Promote SC/ST and minority group entrepreneurship.
Encourage sustainable and inclusive economic growth.
Shishu Loans
Loans for startups and small businesses in the initial stage.
Loan amount up to ₹50,000.
No processing fee applicable.
Ideal for businesses in the nascent stage.
Kishore Loans
Loans for businesses in the growth phase.
Loan amount ranges from ₹50,001 to ₹5 lakh.
Processing fee varies by lender.
Suitable for businesses seeking expansion.
Tarun Loans
Loans for well-established businesses.
Loan amount ranges from ₹5 lakh to ₹10 lakh.
Higher processing fee compared to Shishu and Kishore.
Aimed at businesses with proven track record.
TarunPlus Loans
Extended loan facility for businesses with high credit needs.
Loan amount ranges from ₹10 lakh to ₹20 lakh.
Available for businesses with successful repayment history.
Designed for large-scale business operations.
Interest Rate Determinants
Factors influencing interest rates for Mudra loans.
Applicant's credit history and score.
Bank's internal policies and guidelines.
Prevailing market conditions and RBI directives.
Bank-Specific Rates
Interest rates offered by various banks.
State Bank of India: 12.15% p.a. for loans up to ₹10 lakh.
ICICI Bank: 16.85% p.a. for loans up to ₹10 lakh.
UCO Bank: 9.60% p.a. for loans up to ₹10 lakh.
Repayment Tenure
Loan tenure options under Mudra Yojana.
Tenure ranges from 1 to 7 years.
Flexible repayment schedules available.
Early repayment options without penalties.
Worked Example
Example of interest calculation for a Mudra loan.
Loan amount: ₹5 lakh at 12% p.a. for 5 years.
Monthly EMI: ₹11,122 (approx.).
Total interest payable: ₹1,67,320 over 5 years.
Loan Purposes
Various purposes for which Mudra loans can be availed.
Purchase of commercial vehicles.
Working capital needs for businesses.
Procurement of plant and machinery.
Sectoral Assistance
Sectors eligible for assistance under Mudra Yojana.
Transport and logistics sector.
Retail and trade businesses.
Service sector enterprises.
Non-Farm Activities
Support for non-farm income-generating activities.
Agri-allied activities like poultry and dairy.
Homestays and tourism-related businesses.
Small-scale manufacturing units.
Financial Inclusion
Promoting financial inclusion through Mudra Yojana.
Access to credit for underserved communities.
Encouraging formal banking practices.
Reducing reliance on informal credit sources.
Eligible Entities
Entities that can apply for Mudra loans.
Individuals and proprietary concerns.
Partnership firms and private limited companies.
Public companies and other legal entities.
Business Criteria
Business eligibility criteria for Mudra Yojana.
Non-farm income-generating activities.
Credit needs below ₹10 lakh.
Businesses in trading, manufacturing, and services.
Special Categories
Preference for certain categories under Mudra Yojana.
SC/ST entrepreneurs.
Women-led businesses.
Minority community enterprises.
Previous Loan History
Impact of previous loan history on eligibility.
Successful repayment of previous Mudra loans.
Eligibility for TarunPlus loans up to ₹20 lakh.
No default history with any financial institution.
Transport Sector
Support for transport-related businesses.
Purchase of goods and passenger vehicles.
Fleet expansion for logistics companies.
Vehicle maintenance and repair services.
Retail and Trade
Assistance for retail and trade businesses.
Working capital for inventory purchase.
Expansion of retail outlets.
Support for e-commerce ventures.
Service Sector
Loans for service sector enterprises.
Hospitality and tourism-related services.
Healthcare and wellness businesses.
Education and training institutes.
Manufacturing Sector
Support for small-scale manufacturing units.
Procurement of machinery and equipment.
Expansion of production capacity.
Support for innovation and R&D activities.
Online Application
Steps to apply for a Mudra loan online.
Visit the official Mudra Yojana website.
Fill out the online application form with required details.
Submit the form along with scanned copies of documents.
Offline Application
Steps to apply for a Mudra loan offline.
Visit the nearest bank branch offering Mudra loans.
Collect the application form and fill it out.
Submit the form along with necessary documents to the bank.
Document Verification
Verification process for Mudra loan applications.
Bank verifies submitted documents and application details.
Creditworthiness assessment based on financial history.
Approval or rejection communicated to the applicant.
Disbursement Process
Process of loan disbursement upon approval.
Loan amount credited to the applicant's bank account.
Mudra Card issued for easy access to funds.
Regular updates provided on loan status and repayments.
Identity Proof
Documents required for identity verification.
Aadhaar Card or Voter ID.
PAN Card for tax identification.
Passport or Driving License as additional proof.
Address Proof
Documents required for address verification.
Utility bills like electricity or water bill.
Ration Card or Passport as proof of residence.
Lease agreement or property tax receipt.
Business Proof
Documents required to establish business legitimacy.
Business registration certificate or GST registration.
Trade license or partnership deed.
Income tax returns or audited financial statements.
Financial Documents
Documents required for financial assessment.
Bank statements for the last six months.
Balance sheet and profit & loss account.
Income tax returns for the last two years.
Card Features
Key features of the Mudra Card.
Issued to Mudra loan beneficiaries.
Functions like a debit card for easy withdrawals.
Linked to the borrower's loan account.
Usage Benefits
Benefits of using a Mudra Card.
Convenient access to loan funds.
Track expenses and manage cash flow.
Facilitates digital transactions and payments.
Eligibility for Mudra Card
Eligibility criteria for obtaining a Mudra Card.
Available to all Mudra loan recipients.
No additional charges for card issuance.
Valid for the duration of the loan tenure.
Card Management
Managing your Mudra Card effectively.
Monitor transactions through bank statements.
Report lost or stolen cards immediately.
Renew card upon expiry for continued benefits.
What is the maximum loan amount under Mudra Yojana?
The maximum loan amount under Mudra Yojana is ₹20 lakh, available under the TarunPlus category for businesses with a successful repayment history.
How can I apply for a Mudra loan online?
To apply online, visit the official Mudra Yojana website, fill out the application form with required details, and submit it along with scanned copies of necessary documents.
Are there any processing fees for Mudra loans?
There is no processing fee for Shishu loans. However, processing fees for Kishore and Tarun loans vary depending on the lender's policies.
What is the interest rate for Mudra loans?
Interest rates for Mudra loans vary by bank and applicant's credit history. For example, State Bank of India offers rates starting at 12.15% p.a. for loans up to ₹10 lakh.
Can individuals apply for Mudra loans?
Yes, individuals, along with proprietary concerns, partnership firms, and other legal entities, are eligible to apply for Mudra loans for non-farm income-generating activities.
What sectors are covered under Mudra Yojana?
Mudra Yojana covers sectors such as transport, retail and trade, services, and small-scale manufacturing, supporting a wide range of business activities.
What documents are required for a Mudra loan application?
Applicants need to submit identity proof (e.g., Aadhaar Card), address proof (e.g., utility bills), business proof (e.g., GST registration), and financial documents (e.g., bank statements).
What is the repayment tenure for Mudra loans?
The repayment tenure for Mudra loans ranges from 1 to 7 years, with flexible repayment options based on the lender's terms and the borrower's financial situation.
Is collateral required for Mudra loans?
No, Mudra loans do not require any collateral, making it easier for small businesses and startups to access credit without providing security.
How does the Mudra Card work?
The Mudra Card functions like a debit card, allowing beneficiaries to easily access loan funds, track expenses, and manage cash flow. It is linked to the borrower's loan account.