Mudra Loan

Kotak Mahindra Bank offers MUDRA Loan facility under Pradhan Mantri Mudra Yojana (PMMY) under 3 schemes - Shishu, Kishor and Tarun for granting financial aid to MSMEs.

Syndicate Bank has been merged with Canara Bank with effect from April 1, 2020. So, you can no longer carry out any banking transactions at Syndicate Bank. 

Saraswat Bank MUDRA Loan facility was launched in 2015, as part of the Pradhan Mantri Mudra Yojana (PMMY) scheme. Saraswat Bank provides Mudra Loan to fund support to MSMEs engaged in manufacturing, service and trading sectors at competitive rates of interest starting from 11.65% p.a. to its customers with flexible repayment options.

Canara Bank offers MUDRA Loan facility under Pradhan Mantri Mudra Yojna (PMMY) under its Shishu, Kishor and Tarun schemes for financing the cash needs of small businesses.

IOB offers hassle-free mudra loans under Pradhan Mantri Mudra Yojna (PMMY) scheme for businesses to tide over their financial emergencies.

IDBI Bank offers a MUDRA Loan facility for financing the credit requirements of all non-farm business or professional activities, under the Pradhan Mantri Mudra Yojna (PMMY).

The Mudra Yojana is a collateral-free loan that can be used by individuals who need funds for business purposes, such as expansion, company formation, or establishment modernization, among other things. This credit may be used to create a new business unit or to extend an established one.

Shishu Mudra Loan is one of the offerings as part of the PMMY Mudra Yojana. Under this scheme, borrowers can get loans up to Rs.50,000 to meet their business requirements. 

Mudra is a subsidiary of SIDBI. It provides refinancing facilities to banks and MFIs against the loans which have been provided to MSMEs in order to promote their development. Mudra scheme was curated with the main aim to fund small businesses and entrepreneurs and to protect them from exploitation at the hands of informal lenders.

The processing time for MUDRA loans depends on the category under which you’re applying. Shishu loans up to Rs. 50,000 are processed quicker than the other two categories. You can expect the loan amount to reach you within 7 - 10 days of submitting the application.

The PMMY (Pradhan Mantri MUDRA Yojana) was introduced in April 2015 to help businesses and self-employed individuals avail loans at attractive interest rates. The first step to securing MUDRA loans is to check your eligibility. Once you have verified that you’re eligible, you can follow the steps listed below to secure the loan.

The PMMY (Pradhan Mantri MUDRA Yojana) was launched in April 2015 by the Honorable Prime Minister of India. The aim of the MUDRA loans is to help micro, small and medium enterprises access formal loans quickly and easily. Eligible business owners and self-employed individuals can avail loans up to Rs. 10 lakhs under the PMMY.

Once you apply a MUDRA loan, this will be updated in your credit report. And if you apply for another MUDRA loan under another lender, they would know that you had already applied for a MUDRA loan elsewhere. So that lender will most likely not approve your MUDRA loan application. And it is not advised to take two loans at a time because it would become hard to pay interest and EMIs.

MUDRA loans are provided to people who are looking forward to starting activities in the food product sector like papad making, achaar making, jam/jelly making, agricultural produce preservation at rural levels.

The turnaround time for processing and disbursing the Shishu loans is 7-10 days. For the other two categories of MUDRA loans, Kishore and Tarun, the processing period is different from lender to lender.

The MUDRA scheme provides loans to people who are looking forward to starting a business or expanding their business. There are three categories under the MUDRA scheme

Mudra is a refinancing programme for banks and microfinance organisations. This programme is primarily aimed at small and medium-sized businesses (SMBs) across the country. It is solely available for any Indian person who has ambitions for a non-farming sector income-generating venture in the industrial or service sectors can avail of the MUDRA Loan. 

Individuals who are in need of funds for activities allied to agriculture are eligible for a MUDRA loan. Activities allied to agriculture are

The MUDRA scheme provides loans for vendors, traders, shopkeepers and other service sector activities. So if you are in need of funds for your hardware shop you can avail a loan under the MUDRA scheme. MUDRA schemes provide funds of up to Rs. 10 lakhs. According to the amount you need you can choose your MUDRA loan scheme categories: Shishu, Kishore or Tarun.

The age limit to apply for MUDRA loans varies from one bank to another. The general guideline is that the minimum age to apply for a Mudra loan is 18 years at the time of loan application and the maximum age is up to 65 years at the time of loan maturity.

Before applying for a MUDRA loan, it’s always better to check the eligibility criteria with as many lenders as you can. After checking, apply for the loan with the lender who can provide you with the best loan offer and fits your eligibility. If at all your loan proposal gets rejected, you can figure out why and work towards correcting what went wrong. For example, if your credit score is not what your lender expects, you can try to improve your score.