Many entrepreneurs with sound business plans are eligible for the Mudra loan. Nonetheless, one must meet the criteria established by the lending organization in order to receive the MSME business loan. Each financial organization has its own standards and the interest rate it applies to loans. Learn about the process, who is eligible, and how to apply for Mudra loan in this blog.
What Are the Eligibility Criteria for Mudra Loan?
The Government of India established the PM Mudra credit plan to aid the development of small and medium-sized businesses. Small and medium-sized businesses can gain a competitive edge in the global economy with the help of the MSME Blog’s expert financing, technology, and policy solutions. However, the Mudra Loan scheme’s primary objective is to assist the non-corporatized small business sector through the various Last Mile Financial institutions (LMFIs), including NBFCs, MFIs and banking institutions. Anyone interested in applying for a Mudra loan should be:
- New businesses, sole proprietors, and freelancers
- MSMEs/SMEs (MSMEs)
- Peddlers, merchants, shopkeepers, artisans, and merchants
- Sole proprietorships, partnership firms, LLPs (Limited Liability Partnerships), or other structures
How to Apply for Mudra Loan Online?
These are the measures required to submit an online application under the Pradhan Mantri Mudra Yojana (PMMY):
- First, you must go to PM Mudra Yojana’s official website.
- The second step is to select the desired Mudra scheme application from the three offered in the PMMY Kit.
- Once the form has been opened, fill in your personal and professional information, including your name, date of birth, business/residential address, educational history, qualifications, and more.
- Send in Your PMMY Application along with related documents like NBFCs, banks, and MFIs.
- Within ten days of submission, it will be processed and verified by the Last Mile Financial institutions like NBFCs, banks, and MFIs. The loan funds will be deposited into your bank account within a few days of the application being approved.
How to Apply for Mudra Loan Offline?
Here are the paper applications for PM Mudra Yojana:
- First, go to any NBFCs, banks, or MFIs that are part of the PMMY’s approved Last Mile financial institutions. Bring a complete application with you.
- The second step is to fill out an official PM Mudra Yojana.
- Third, send the completed application, any supporting materials they request, and a passport photo.
- Finally, after an application has been submitted, it will be reviewed and approved or rejected within a certain time. After the loan is granted, the funds will be transferred to the borrower’s bank account within a few business days.
Before applying for a loan through the PM Mudra Yojana, financial institutions, including banks and NBFCs, would require the following paperwork:
- Completed and signed application form.
- Two photos, passport style, must be included.
- Documents such as a passport, Aadhar card, PAN card, driver’s license, and utility bills are acceptable forms of identification for the candidate and any co-applicants.
- Documentation showing that you belong to a protected group, such as the SC, ST, OBC, or another Minority group (if relevant).
- Your most recent six-month bank statement.
- Location of the company.
- Security of tenure.
- Two years worth of federal income tax returns (ITR).
- Any additional paperwork is required by the NBFC or bank.
Mudra Loan is a remarkable initiative by the Government of India to aid the growth of small and medium-sized businesses. The eligibility criteria for the Mudra loan are flexible, making it accessible to a broad range of individuals and businesses. Whether online or offline, you need not worry much about how to apply for mudra loan as it is a simple process. By providing the necessary documentation and meeting the lender’s criteria, entrepreneurs can benefit from this scheme and take their businesses to new heights. So, if you’re eligible, don’t hesitate to apply for a Mudra loan and take the first step towards realizing your business goals. To know more, get in touch with us at MSME blog.