Mudra Loan

Mudra Loan:The Government of India conducted a survey in the year 2013 by NSSD. According to this survey, there are 5.77 crore micro and small entrepreneurs in the country. About 12 crore people work in these industries. These include self-industries and individual industries (proprietor).More than 60% of the people in this are from Scheduled Caste, Scheduled Tribe or other backward classes. Most of these industries were outside the formal banking system. Therefore, these industries used to take loans from the private sector to run their industries or run their industries on their own limited capital. To overcome this gap, the Honorable Prime Minister of the country Narendra Modi started the Mudra Loan Scheme in the year 2015. The main objective of this scheme is to encourage the youth to become entrepreneurs and to give confidence to the existing small industries to expand their industries by providing them financial assistance.

Mudra Loan Quick Review:

Name Of Yojana:	Pradhan Mantri Mudra Loan Yojana.
Started by:	Modi Government.
When Started:	08 April 2015.
Beneficiary:	Micro and small industries of India.
Benefits:	Loan up to Rs.20 lakh.
Interest Rate:	11.75%
Official Website:	www.mudra.org.in

Mudra Loan Details:

Government will provide this Mudra loan to people through banks, rural banks, state cooperatives, private banks and eligible financial institutions. This Mudra Loan scheme was started by Honarable Prime Minister Modi on 08 April 2015.

This Mudra loan will be given to the following industries.

• Production industry
• Trading industry
• Service industry

All these industries will be given loan up to Rs.20 lakh through Mudra Loan Yojana. The overdraft facility of Rs.10000/- given in Pradhan Mantri Jan Dhan Yojana (pmjpy) has also been included in this Mudra Loan Scheme.

Also Read about:Bakari Palan Yojana.

Types of Mudra Loan :

This Pradhan Mantri Mudra Loan is given in the four types or categories.

• 1. Shishu Mudra Loan: Loan up to Rs.50000/- is given.
• 2. Kishor Mudra Loan: Loan from Rs.50000/- to Rs.5 lakh is given.
• 3. Tarun Mudra Loan: Loan from Rs.5 lakh to Rs.10 lakh is given.
• 4. Tarun Plus Mudra Loan: Loan from Rs.10 lakh to Rs.20 lakh is given.

Mudra Loan Eligibility:

1. following persons or institution given below is eligible to take advantage of this mudra loan scheme.

1. Individual.

2. Proprietorship company.

3. Partnership firm.

4. Private limited company.

5. Public company.

6. Other legal entity.

2. The applicant should not be a defaulter of any bank or financial institution.

3. The loan applicant should have a good credit track record and history.

4. The applicant must have industry skills, experience or knowledge.

5. The applicant must have the educational qualification required for the proposed activity.

Alos Read About:Laghu Udyami Yojan.

Mudra Loan Documents:

1. Aadhar Card

2. PAN Card

3. Address Proof of Industry (Electricity Bill, Water Bill Receipt, Municipal Tax Payment Receipt).

4. Rent Agreement (if the place is on rent)

4. Bank Current Account.

5. GST Registration Certificate

6. Project Report.

7. No Objection Certificates from 5 Banks as per Bank Asked.

Mudra Loan Online Apply:

PM Mudra loan objectives:

1. To bridge the gap between the banking system and the industry.

2. To provide financial assistance to existing micro and small industries.

3. To encourage the youth of the country to become entrepreneurs.

4. To inspire to start new micro and small industries in the country.

Mudra Loan format:

Mudra loan is given to small and micro industries through term loan, over draft (OD) and composite loan based on their capital asset or working capital and marketing related requirement. This mudra loan is provided to small industries for production, processing and service. So that the small industries can earn profit.

The amount of mudra loan depends on the industry plan and investment.

Mudra Loan card (debit card):

Recently the Government of India has launched Mudra card (debit card) for industry working capital. This card is issued through rupay platform. It provides hassle free loan in a flexible manner. The business holder can use this debit card for his industry whenever he wants.

Mudra Loan Amount:

Mudra Loan provides loan upto Rs.20 lakh in its four categories i.e. Shishu, Kishor, Tarun and Tarun Plus.

Mudra Loan Margin Money:

Mudra Loan applicant’s own contribution is determined on the guidelines of bank or financial institution RBI (Reserve Bank of India). But no bank can demand margin money for Shishu Mudra Loan.

Loan Type	Loan Amount	Margin Money %
Shishu Mudra Loan:	Upto Rs.50000/-	Nil
Kishor Mudra Loan:	Upto Rs.50000/- to Rs.5 lakh	20%
Tarun Mudra Loan:	Upto Rs.5 lakh to Rs.10 lakh	20%
Tarun Plus Mudra Loan :	Rs.10 lakh to Rs.20 lakh	20%.

Mudra Loan Interest Rate:

The rate of interest on Mudra loan is charged as per the policy decision of the bank. This rate is based on the advice of Mudra Limited. But the current interest rate of Mudra loan is 11.75%.

Mudra Loan Processing Charges:

The bank charges bank charges and loan advance charges as per its internal guidelines. Loan advance charges are waived for Shishu Mudra Loan.

Mudra Loan Security:

No security will be taken from the borrower for Mudra loan. But in term loan, hypothecation will be taken by the bank on the plant and machinery purchased from the loan and in cash credit loan, hypothecation will be taken on stock.

Note : As per RBI guidelines dated July 01, 2014, no collateral security is required for loan up to Rs.10 lakh .It will not be taken by the bank.

Mudra loan tenure:

Mudra loan tenure is 36 months. It depends on RBI guidelines. It can be changed.

Mudra loan repayment:

Term loan:	Bank determines the installment according to the financial condition of the industry.
OD and CC loan:	Bank determines and renews OD or CC loan on the basis of its internal guidelines.

Availability of Mudra loan:

This Mudra loan facility is available in every bank of the country. The NBFCs / MFIs institutions which give loans to micro and small businesses. The government has also recognized these institutions to give Mudra loan.

Mudra loan important links:

SIDBI  :	Click Here.
Stand Up India :	Click Here.
DFS:	Click Here.
MFIN:	Click Here.
SA-DHAN:	Click Here.
NABARD:	Click Here.
Jansamart Portal :	Click Here.

Mudra Loan Success Stories of women:

1. Padmini Meher From Odisha State:

Padmini Mehar is a resident of Bargarh district of Odisha. She is a daily wage laborer and her husband is also a laborer and they run their household with great difficulty. The income from wages is very low. By taking a Mudra loan, Padmini has bought a handloom machine on which she weaves beautiful sarees and sells them. He gets a good income, after meeting the expenses of his family, he has also started saving a little bit.

2.Susama from Central Odisha:

Susama is a woman from the small Kumareshwar village in Behara, which falls in Central Odisha. Despite being disabled, this woman is a positive and energetic woman. He took PM Mudra loan to start a micro industry and bought a coconut thread making machine with it. She sells this coconut thread in the nearby market and earns good profit from it.

3.Suman from Bihar:

Suman is a rural woman. She knew the art of making utensils from clay. He thought of making this art his livelihood. He borrowed money from his neighbors and started his own utensils making business. But he did not have the money to expand this business. Then heard about Pradhanmantri Mudra Loan Yonana and the credit institution gave him a loan of Rs.15 lac. Suman bought a small piece of land from him and after extracting soil from that land she started making utensils from it. Now she earns good margins from this business. Seeing her success, many women of the village are encouraged to start new businesses.

4.Bhagyalaxmi from Maharahstra:

Bhagyalakshmi is a poor housewife woman living in Sakinaka, Mumbai. Her husband is a labourer and his income was very low. Bhagyalakshmi used to work in other people’s houses to help her family. Then he got information about PMMY. He contacted Suryodaya Micro Finance Organization they provided him Rs. 20000/- Mudra loan to start his business. With this he started a Vada Pav cart. His business is growing rapidly and now he has shifted this business to the main market. With the profit from this business she has bought a new house and her life has improved and she is now living a happy life.

5.Aruna from Maharashtra Mumbai:

Aruna is a housewife from Maharashtra. She wanted to start a dry fruit selling business. But he did not have money. After attending the town hall meeting he came to know about Mudra Loan Scheme and Mudra Card. He approached his nearest Bank of Maharashtra and the bank provided Mudra loan of Rs.90000/-. With this, she bought different varieties of dry fruits, packed them in good boxes and started selling them in the market. He earns a good income from it and takes care of his family well.

Frequintly Ask Questions About Mudra Loan: