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Introduction
Our financial lending system is one of the most widespread in the world. However, with the majority of the population not being able to reach assistance when they need it, a solution had to be brought about. A formal financial system was created by the Government in 2015, called Pradhan Mantri Mudra Yojana (PMMY) for extending affordable credit to all enterprises. Many set-ups even today struggle without sufficient funds and tend to wither away over a period of time. Andhra Bank offers loans under this scheme called Andhra Bank Mudra Loan. More details can be read below.
About Andhra Bank Mudra Loan
Andhra Bank Mudra Loan – Features
The main highlights of Andhra Bank Mudra Loan are:
- The loan is sanctioned to non-farming sectors after 8th April 2015.
- The limit of this loan is Rs. 10 lacs.
- Andhra Bank Mudra Loans are also available for manufacturing, service and trading activities.
- There is no requirement of collateral security.
- The loan does not demand a guarantee making it easily accessible to the masses.
- There are different categories of Andhra Bank Mudra Loan which is listed below:
| Category | Loan Amount |
|---|---|
| Shishu | Loans up to Rs. 50,000 |
| Kishore | Loans between Rs. 50,000 and Rs. 5 lacs |
| Tarun | Loans between Rs. 5 lacs and Rs. 10 lacs |
- The fees and charges for taking this loan are:
| Category | Shishu | Kishore | Tarun |
|---|---|---|---|
Rate of Interest | MCLR | Applicable as per extant guidelines | |
|
| MCLR + 1.80% p.a. + TP* | |
* TP of 0.25 % is applicable for TLs with repayment period (including gestation period) above 36 months and up to 60 months and 0.50% for TLs with repayment period (including gestation period) of above 60 months. | |||
Processing Charges/ Upfront fee | Waived | 50% concession on applicable Processing/Upfront fee | |
Unit Inspection Charges | Waived | Applicable as per guidelines | |
Ledger Folio Charges | Waived | Applicable as per guidelines | |
Andhra Bank Mudra Loan - Documents Required
The documentation required for applying to an Andhra Bank Mudra Loan is mentioned below.
Shishu Category (up to Rs. 50,000)
- Proof of identity - Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card/Passport/Photo Ids issued by Govt. authority etc.
- Proof of Residence - Recent telephone bill, electricity bill, property tax receipt, Voter’s ID card, Aadhaar Card, Passport of Individual/ Proprietor/Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.
- Applicant’s Recent Photograph (2 copies) not older than 6 months.
- Proof of SC/ST/OBC/Minority, if applicable.
- Proof of Identity / Address of the Business Enterprise –if available.
- Statement of Account from the existing Banker for the last six months, if any.
- Quotation of Machinery / other items to be purchased.
Kishore (Rs. 50,000 up to Rs. 5 lacs) and Tarun Category (Rs. 5 lacs up to Rs.10 lacs)
- Proof of identity - Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card/Passport/Photo Ids issued by Govt. authority etc.
- Proof of Residence - Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhaar Card, Passport of Individual/ Proprietor/Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.
- Proof of SC/ST/OBC/Minority, if applicable.
- Proof of Identity / Address of the Business Enterprise – Copies of relevant Licenses / Registration Certificates / lease or Rent agreement/ Other Documents pertaining to the ownership, identity of address of business unit / Udyog Aadhaar Memorandum.
- Statement of Account from the existing Banker for the last six months, if any.
- Last two years unaudited balance sheets of the existing units along with income tax /sales tax returns etc. (Applicable for loans of Rs. 2 lacs and above).
- Projected balance sheets of start-ups/existing units for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for loans of Rs. 2 lacs and above).
- Sales achieved during the current financial year up to the date of submission of application (in case of existing units).
- Proforma Invoices/Quotations for the assets to be purchased and estimates for the civil works, if any to be undertaken. Aspects of technical feasibility and economic viability may be discussed with borrower if felt necessary.
- Asset & Liability statement of the borrower including Directors & Partners.
- Memorandum and Articles of association of the company/Partnership Deed of Partners etc. wherever applicable.
- Photos (two copies) of applicant/Proprietor/ Partners/ Directors not older than 6 months.
FAQs
1. Who can apply for the Andhra Bank Mudra Loan?
Andhra Bank Mudra Loan has been available since 8th April 2015. Any enterprise engaged in the farming sector, manufacturing, service and trading can apply for this loan.
2. What are the different categories of loan offered in Andhra Bank Mudra Loan?
The loan is offered under three different categories namely:
| Category | Loan Amount |
|---|---|
| Shishu | Loans up to Rs. 50,000 |
| Kishore | Loans between Rs. 50,000 and Rs. 5 lacs |
| Tarun | Loans between Rs. 5 lacs and Rs. 10 lacs |
3. Does the applicant need to give security for this loan?
One of the main benefits of Andhra Bank Mudra Loan is the non-requirement of collateral security making it possible for very small enterprises to avail this loan.
4. What are the documents required for Shishu category of Andhra Bank Mudra Loan?
The following documents are required for applying to Shishu category of Andhra Bank Mudra Loan:
- Proof of identity - Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card/Passport/Photo Ids issued by Govt. authority etc.
- Proof of Residence - Recent telephone bill, electricity bill, property tax receipt, Voter’s ID card, Aadhaar Card, Passport of Individual/ Proprietor/Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.
- Applicant’s Recent Photograph (2 copies) not older than 6 months.
- Proof of SC/ST/OBC/Minority, if applicable.
- Proof of Identity / Address of the Business Enterprise –if available.
- Statement of Account from the existing Banker for the last six months, if any.
- Quotation of Machinery / other items to be purchased.
Andhra Bank Mudra Loan - Customer Reviews
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