Mudra loan Eligibility Document

Mudra loan Eligibility Document: Permitted and eligible financial institutions, such as public and private sector banks, non-banking financial companies (NBFCs), small finance banks (SFBs), microfinance institutions (MFIs), cooperative banks, and regional rural banks, offer Micro Units Development and Refinance Agency (MUDRA) loans to individuals and MSMEs (RRBs).

The Indian government introduced the Pradhan Mantri MUDRA Yojana (PMMY) to provide financial support to people, entrepreneurs, new and existing businesses, and MSMEs in order to develop India’s MSME sector. The characteristics, eligibility, and loan types of the Mudra lending system are also discussed:

Mudra loan Eligibility Document

Eligibility Document

Before applying for a Mudra Loan, make sure you have the following documentation on hand:

  • Mudra application form (PDF format) completely filled out with passport-sized photo
  • Among the applicant’s KYC documents are a passport, voter ID card, driver’s licence, PAN card, Adhaar card, utility bills (water/electricity bills), birth certificate, and Class X certificate
  • Proof of income: A bank statement from the last 12 months.
  • If applicable, the preceding year’s ITR.
  • Proof of membership in the SC/ST/OBC category, if applicable. Any other documentation that the bank may request.

Mudra Yojana Features

  • The minimum age is 18 and the highest age is 65.
  • Rates of interest range from one bank to the next
  • The minimum loan amount is thirty thousand rupees.
  • The highest loan amount is 10 lakh rupe
  • There is no requirement for security or collateral.
  • There is no processing cost
  • Repayment Tenure of up to five years is possible.

Mudra Loan Eligible 

The following entities are eligible for a Mudra Loan:

  • Individuals as well as small and medium-sized organisations are eligible.
  • Manufacturers, artisans, vendors, traders, and retailers are all examples of businesses that fall within this category.
  • Solely concerned in the trade, manufacturing, and service sectors.
  • proprietorships, partnership businesses, and limited liability partnerships are all examples of business structures (LLPs).
  • Small and micro-scale manufacturing units
  • Small-Scale Industry Units (SSI).

Types of MUDRA loan

MUDRA loans are classified into three types: Shishu, Kishor, and Tarun, based on the firm’s stage of growth and development as well as its financial necessity. The loan amount sanctioned under each category is also mentioned:

  • Under the SHISHU category, loans of up to Rs. 50,000 are offered.
  • Under the KISHOR category, loans ranging from Rs. 50,001 to Rs. 5 lakh are accessible.
  • The TARUN category includes loans ranging from Rs. 500,001 to Rs. 10,00,000.