Mudra loan process for MSMEs: Under the scheme, Mudra enables credit for micro units to support their growth at three different stages — Shishu, Kishor, and Tarun with financial limits up to Rs 50,000; up to Rs 5 lakh; and Rs 5 lakh to Rs 10 lakh respectively.
Online Mudra loan application process: Pradhan Mantri Mudra Yojana (PMMY) is among the self-employment and entrepreneurship promotion schemes of the government launched by Prime Minister Narendra Modi back in 2015. The scheme targets micro enterprises, which are generally proprietary concerns, and individual businesses at the bottom of the entrepreneurial pyramid seeking loans up to Rs 10 lakh.
Mudra stands for Micro Units Development & Refinance Agency Ltd., a financial institution set up by the government to refinance all last-mile financiers. These include non-banking finance companies, microfinance institutions, societies, trusts, section 8 companies, small finance banks and regional rural banks which are in the business of lending to micro and small businesses in manufacturing, trading and services activities as well as agri-allied activities.
Under the scheme, Mudra enables credit for micro units to support their growth at three different stages — Shishu, Kishor, and Tarun with financial limits up to Rs 50,000; up to Rs 5 lakh; and Rs 5 lakh to Rs 10 lakh respectively.
Here’s how you can apply online for a loan under the Mudra scheme:
Visit the government’s Jan Samarth portal and click on ‘Business Activity Loan’ from the ‘Schemes’ dropdown and then click on ‘Pradhan Mantri Mudra Yojana’
Scroll down the page and click on ‘Check Eligibility’
Select ‘Other Business Loan’ if you are not a handloom weaver or manual scavenger or street vendor
Enter details such as new or existing business, type of business, your social category, location, estimated cost to start or grow your venture and the amount you are willing to invest from your own source
The portal will then calculate and show up the loan amount you are eligible for. For example, if the estimated cost of your project is Rs 2 lakh and you can invest Rs 50,000 from your end, the loan amount you would be offered is Rs 1.5 lakh
Click on ‘Calculate Eligibility’ to get details about monthly EMI and loan tenure
Click on ‘Login to Apply’; log in with your registered mobile number
Click on ‘Proceed’ under the Mudra scheme dialogue box
Review the details you provided and Click on ‘Continue’
The application page will come up showing the necessary documents required; agree to all documents and click on ‘Agree & Proceed’
Verify your identity with PAN, Udyam registration and Aadhaar details and click on ‘Proceed’
The portal will fetch your GSTIN details but if the business is not GST-registered, it will ask for reason such as whether GST is not applicable to your product or service, GST is not applicable in your state, GST is not required because sales is below registration limits and other reason
Click on ‘Proceed’ to enter your business details and monthly sales data and again click on ‘Proceed’
Enter other business details and click on ‘Proceed’ to submit your bank details either through bank statements or by verifying your bank account
Click on ‘Verify’ and on the next page enter details around the number of employees, business address, whether you have any existing loan, details of existing lenders, etc.
After entering the details, it will show that your form is ‘Complete’ and can be submitted
Once submitted, the portal will share the loan offers from various banks with the rate of interest and loan tenure
Click on ‘Select Offer’ for the relevant loan offer
Once your loan application is approved digitally by the selected bank, the latter will undertake sanctioning process which might include branch visits for any clarification or error in documents in order to disburse the loan
Among the documents required for the Mudra loan are address proof, establishment proof, bank statements, ownership proof of residence/office, proof of continuity of business, proof of qualification, trade references, two years ITR, etc. The interest rate varies between 6 per cent and 20 per cent among different lenders with five or seven-year tenure usually.