How To Apply For Mudra Loan Online

There are two ways to apply for a MUDRA Loan: 

Offline through the Bank or Financial Institution where you want to avail the loan from. You fill in the details on a paper form and submit the documents physically at your nearest branch.

Online on the Udyami Mitra Portal / Mudra Mitra Portal or the official websites of banks and NBFCs offering this scheme. You fill in the details and upload the documents online.

This article will talk about online application for MUDRA Loan.

Online application for MUDRA Loans

As stated earlier, there are 3 different schemes under the MUDRA Loan. You need to determine which scheme you will be applying under, before you start the application process. Based on the loan amount, you can choose the category under which the loan will be processed – Shishu, Kishor or Tarun. Keep all the necessary documents ready before starting the application process (For the list of necessary documents, refer to the “List of Required Documents” section below)

• Once you have completed these preparations, logon to the ‘Udyami Mitra’ or ‘Mudra Mitra’ website.
• Click the button for online application. On the Udyami Mitra portal, it is present as “Click Here To Apply” and on Mudra Mitra portal, it is present as “Continue For PMMY Loan”.
• You need to first register on the portal to apply for the loan. Click on ‘New User’.
• On this page, you select the required loan amount and the scheme under which you want the loan to be processed.
• Once you select the scheme, you will be presented with the Personal Details and Address Details fields.
• You will be required to fill in your name, email address, mobile number & business address details.
• You have to then read the Terms & Conditions and click on the ‘I agree’ box. 
• Once you fill in these details and hit submit. You will receive an email with your username and password to login to the portal and continue your application.
• You will be required to fill in the following details: 

Step 1: Business Information

Step 2: Background Information of Proprietors / Directors

Step 3: Names of Associate Concerns and Nature of Association; Banking/Credit Facilities Existing; Credit Facilities Proposed

Step 4: Future Estimates; In case of working capital: Basis of cash credit limit applied; In case of term loan requirements: details of machinery/equipment

Step 5: Status regarding statutory obligations; Document attachments; Preferred Lender

Step 6: Declaration and the Submit button

• You can attach the scanned copies of the documents on Step 5. The portal accepts png, jpg, jpeg, bmp and pdf formats that do not exceed 5 MB in size.
• On Step 5, applicants are allowed to upload their credit rating from any one of the credit rating agencies.
• On Step 5, applicants are given an option to choose their preferred lender. They can choose their preferred bank or NBFC where they want their loan to be processed.

Turnaround time for MUDRA loan processing

Upon submission of the documents, the bank will verify the documents. Shishu loans are usually disbursed within 7-10 days. Kishor and Tarun loan turnaround time varies based on the lender.

Once you are deemed eligible by the bank to secure a loan under the Mudra Scheme, the loan is disbursed in the form of a pre-loaded Mudra Card that comes personalized with your name on it. This is a RuPay debit card that is attached to the Pradhan Mantri Jan Dhan Yojana Savings Account and allows you to conveniently withdraw from any ATM when purchasing for your business. The cash withdrawal limit is set at Rs. 25,000 per day and includes cash credit and current deposit accounts as well.

Documents required to be attached along with your MUDRA application:

• Business plan
• Identity proof – Aaadhar Card, PAN Card, driving license, Passport, etc.
• Residence proof – the electricity bill, property tax receipt, telephone bill, etc.
• Recent photographs – not more than six months’ old
• Quotation of the equipment/machinery to be purchased
• Name of the supplier
• Identity and address proof of the business, like a business license, tax registration, etc.
• Category proof, such as SC/ST/OBC, etc.

Some pointers to help you fill in the MUDRA Loan application form

• Always provide accurate and genuine information to avoid rejection of loan
• Enter correct spellings of your names that match with the official documents you are submitting with the application
• Make use of the hand holding assistance available to prevent sloppy application forms
• Read all the guidelines carefully before filling the application form
• Neatly scan all the supporting documents and upload them without fail
• Save the filled in application form regularly to avoid losing the input data

FAQs: