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  • Mudra Bank Loan (Pradhan Mantri Mudra Yojana) is Rated as "Great!" by 96713 Users

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    Mudra Bank Loan (Pradhan Mantri Mudra Yojana)

    Pradhan Mantri Mudra Yojana is a new scheme under Micro Units Development and Refinance Agency for developing and refinancing activities that are relating to micro units. This scheme was announced while presenting the budget for the 2016 financial year. The main purpose of this loan is to provide funds to non-corporate small business sectors.

    What are Micro Units?

    Micro units are the small organizations, companies and start-ups in India. The most common observation about the micro units is that they lack funds to financial support their business.

    Micro Units Development and Refinance Agency Bank has been set up by the Indian Government to fulfil all the funding needs of the non-corporate small business. The responsibility of Micro Units Development and Refinance Agency Bank is to prepare and launch the policy guidelines and registration and regulation of Micro Finance Institution entities. They are also responsible to run a credit guarantee scheme and create a good architecture to serve micro business by offering financial assistance.

    Categories of Pradhan Mantri Mudra Yojana

    The micro units are further classified based on their growth stage, development and funding requirements. The three categories are as follows:

    1. Shishu (child) Category:
    2. This category is for the start-ups that have just started out and are looking for loan. Loan cover offered to this category of micro units is Rs.50,000.

    3. Kishor Category:
    4. This is the category where the business has started but it is yet to be established. The loan cover offered to this category ranges from Rs.50,000 to Rs.5 lakh.

    5. Tarun Category:
    6. The business that have started and established themselves fall under this category. The loan might be to expand their business or to buy assets, etc. The loan cover offered to this category ranges from Rs.5 lakh to Rs.10 lakh.

    Eligibility criteria to avail Mudra Loan (Pradhan Mantri Mudra Yojana)

    The borrowers must be from the following Non-corporate Small Business Segment:

    • Proprietorship
    • Partnership firms
    • Small manufacturing units
    • Service sector units
    • Shopkeepers
    • Fruit or vegetable vendors
    • Truck operators
    • Food service units
    • Repair shops
    • Machine operators
    • Small industries
    • Food processors
    • Other industries in rural and urban areas.

    The Lender's Eligibility criteria is as Follows

    • The scheduled commercial banks in public and private sector must have 3 years of continuous track record and their net NPAs not exceeding 3%. To be eligible to lend the loan their minimum net worth is supposed to be Rs.100 crore and not less than 9% of CRAR.
    • The rural banks must have a net NPA within 3%. To be eligible to lend loan they must also have a profitable operation and must not carry any accumulated losses and CRAR more than 9% CRAR.
    • Micro Finance Institutions and Small Business Companies are eligible if they fulfil the requirements.

    What can Mudra Loan be availed for?

    Mudra loan can be availed for the following purposes:

    • Commercial vehicle loan
    • Car loan
    • Two wheeler loan
    • Loan for working capital requirement
    • Buying plant and machinery
    • Renovating the business space
    • Drop line overdraft or working capital loans or overdraft facility is provided to business groups and rural businesses.

    Application process to avail Mudra Loan

    To apply for Mudra Loan for all the categories, you will have to go through the following process:

    • The borrower who wishes to take a loan under the Mudra scheme must visit the closest private or the commercial bank.
    • The borrower will have to present the business idea with the loan application form along with the other documents required.
    • Borrower will then have to fill up all the formalities as per the bank instructions.
    • The loan will be sanctioned and made available after all of the above steps are completed.

    Documents required for Mudra Loan

    If the borrower wishes to take a vehicle loan under the Pradhan Mantri Mudra Yojana (Mudra Loan), he must submit the following documents:

    • The Pradhan Mantri Mudra Yojana application form that is duly filled.
    • Vehicle loan application form that is duly filled.
    • 2 passport sized photos of the borrower.
    • Photo identity proof and address proof and income proof.
    • Last 6 month’s bank statement.

    If the borrower wishes to take a business instalment loan under the Pradhan Mantri Mudra Yojana, he must submit the following documents:

    • Pradhan Mantri Mudra Yojana application form and Business Instalment loan application form that is duly filled.
    • Photo identity proof and address proof.
    • Proof of establishment.
    • Last 6 month’s bank statement.
    • Ownership proof or office and residence.
    • Proof of continuity of business.
    • Qualification proof.
    • Trade references.

    If the borrower wishes to take a Business Loans group and rural business credit under the Pradhan Mantri Mudra Yojana, he must submit the following documents:

    • Pradhan Mantri Mudra Yojana application form and Business Instalment loan or Rural Business Credit application form that is duly filled.
    • Photo identity proof, age proof and address proof.
    • Ownership proof of residence or office.
    • Business vintage proof.
    • Last 12 month’s bank statement.
    • Last 2 years Income Tax Return document.

    Pradhan Mantri Mudra Yojana (Mudra Loan) Application form

    The following details will have to be filled in the Pradhan Mantri Mudra Yojana (Mudra Loan Bank) application form:

    1. Enterprise name and category has to be mentioned for office use.
    2. Business information:
      1. Name of the enterprise
      2. Constitution if it is proprietary, partnership firm, private limited firm, limited company or if it is any other firm, then it has to be specified.
      3. Current business address
      4. Telephone and mobile number
      5. Email address
      6. Business activity that is existing and proposed.
      7. Date of commencement of business
      8. The registration number of the business
      9. Registered office address
      10. Social category that is either SC, ST, OBC or Minority community. If it is a minority community, then it must be mentioned.
    3. Information about the proprietor:
      1. Name
      2. Date of birth
      3. Sex
      4. Residential address
      5. Mobile number
      6. Academic qualification
      7. Experience in years
      8. ID proof and ID proof number
      9. Address proof and address proof number
      10. PAN card or DIN number
      11. Relationship with the officials or director of the bank, if any.
    4. Names of associate concerns:
      1. Name of the associate concern
      2. Address of the associate concern
      3. Bank that the associate concern is associated with.
      4. Nature of the associate concern
      5. Extent of interest as a proprietor, partner, director or investor in the associate concern
    5. Existing banking or credit facilities
    6. The following details must be filled:

      1. The type of facilities allowed
      2. Bank that the business is associated with
      3. Limit availed
      4. Outstanding amount
      5. Security lodged
      6. Asset classification status
      7. Customer ID
    7. Credit facilities proposed and the amount and the purpose and the details of the security offered must be mentioned in rupees.
    8. In case of working capital, the actual sales and projected sales information has to be clearly mentioned.
    9. In case of Term Loan requirement, the details of the machinery or equipment has to be provided. The details of the type of the machinery, purpose, supplier name, and cost of machine, contribution made by promoter and the loan required must be filled in.
    10. The past performance and future estimates of sales, profit and capital must be mentioned.
    11. Statutory obligations’ status has to be mentioned. The statutory obligations are:
      1. Registration under Shops and Establishment Act
      2. Registration under MSME
      3. Drug License
      4. Latest Sales Tax Return filed
      5. Latest Income Tax Returns filed
      6. Any other statutory dues that is outstanding.
    12. The final part is the declaration, which requires you to pin up 3 passport sized photographs and the signature of the proprietor, partner or director, whose photographs have been affixed.
    13. The borrower will get an acknowledgement slip that includes the following:
      1. Application number
      2. Date of application
      3. Loan amount requested
      4. Name of the applicant
      5. Signature of the applicant
      6. Signature and seal of the branch official

    Mudra Bank Loan FAQs

    1. What is the MUDRA/PMMY Scheme?

      MUDRA stands for Micro Units Development & Refinance Agency Ltd, and PMMY stands for Prime Minister MUDRA Yojana. Mudra is being established as a government refinancing and development institution and was announced in the Budget 2016-17. The scheme aims to give funding for non-farm and non-corporate small business entities through intermediaries that include almost all Banks, NBFCs and MFIs operating in India.

    2. What is the purpose of Mudra Scheme?

      Financial support has been found to be lacking for the Non-Corporate Small Business Sector (NCSB) which employs more than 120 million Indians. With 90% of the sector out of the formal finances sector, the informal sector has always been marginalized in the country. The Mudra initiative from the Government of India aims that bridging the gap for financing of NSCB initiatives. Currently, the Mudra falls under SIDBI with plans for enactment of a law for Mudra Bank in the future.

    3. Who will be targeted under the Mudra scheme?

      Mudra will be tasked with refinancing needs of NBFCs, trusts, societies, co-operative societies, section 8 companies, scheduled commercial banks, small banks and other rural banks that provide financing to small and micro business entities that are involved in services, trading or manufacture verticals.

    4. What does Mudra offer?

      Mudra offers three different loan schemes:

      • Shishu: loans up to Rs.50,000
      • Kishor: loans above Rs.50,000 and up to Rs.5 lakhs
      • Tarun: loans above Rs.5 lakhs and up to Rs.10 lakhs
    5. When does the Pradhan Mantri Mudra Yojana (PMMY) come into effect?

      All loans up to Rs.10 lakhs that have been sanctioned after 8th April 2015 and for income generating activities other than farm related fall under the PMMY loan scheme.

    6. Who should I approach for Mudra loans?

      The scheme has been released by the central government and different financial institutions are tasked to provide the loans as intermediaries. These include Public Sector Banks, Cooperative banks, Regional Rural Banks, Foreign Banks, Private Sector Banks, NBFCs and MFIs.

    7. Who oversees the operations under Mudra?

      SLBC forum in each state and Department of Financial Services will oversee operations in the national level. A unified portal for Mudra has already been established for tracking achievement details of all financial institutions that are disbursing loans under the scheme.

    8. What is Mudra Card?

      The Mudra Card is a comprehensive benefits providing card that offers working capital through CC/OD whenever needed. The card functions as RuPay Debit Card and may be used for withdrawing cash at ATMs or for making purchases through Point of Sale machines. You can also credit money into the card as and when there is surplus funds so as to reduce the quantum of interests.

    9. Who do I send grievance or feedback to?

      Any grievance, complaints or feedback can be taken up with the respective bank/NBFC/MFI higher authorities such as zonal or regional manager.

    10. A lending institution near my house has refused me loans under PMMY scheme. What do I do now?

      You can escalate the grievance to higher authorities within the lending institution or approach any other bank/MFI/NBFC in your neighbourhood.

      Check Mudra Loan Interest rates from different Lenders

      The interest rates on the Mudra Loans are decided individually by each lender. Check the rates from more than 33 lenders in India here

      Know more about Mudra Loan Eligibility

      Mudra Loans are meant for entities looking to invest in non-farm income generating activities which includes a broad range of activities and businesses. Check the eligibility requirements here.

    Mudra Loan (Pradhan Mantri Mudra Yojana) Reviews

    • Citibank Personal Loan
      "Overall good"
      0.5 4.0/5 "Great!"
      I had no issues to get the personal loan with Citibank. The process was fine and I got the loan as needed. The customer support and response is fine as well as they contacted me on time. I am not sure on the rate of interest and processing charges.
      Was this review helpful? 2
      , new delhi
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Its Excellent"
      0.5 4.5/5 "Excellent!"
      Due to Bank Bazaar, only I got early salary short term plan. I had gone through the service provider and they helped me out. The online application is also good, the customer service is amazing. They call me back to back, if I busy they call me again to service.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on Dec 07, 2018
    • Early Salary Personal Loan
      "Qucik Process"
      0.5 4.0/5 "Great!"
      The response is good even the loan was disbursed on time. I am very satisfied with the Early salary and the interest rate is good and enough. I took 10K with Early Salary and they have charged around Rs. 600 and I will pay the loan within one month.
      Was this review helpful? 1
      , ahmedabad
      Reviewed on Dec 07, 2018
    • Axis Bank Personal Loan
      "Its Average"
      0.5 5.0/5 "Blown Away!"
      In Axis bank the interest rate is high comparatively but its very easy to approach. I have been kept follow up with Axis but they taken some time process the personal loan application. I think they are charging some fee for per closuring the loan.
      Was this review helpful? 3
      , salem
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bank bazaar where i am using it through the website where it is user friendly portal to access. The customer service is responsive also they explain the details of the loan. It is a very good portal to use.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar.com gave me good support, all the services are good,they call and intimated about the application. Recently I started using the application, the experience is really good. I came to the site through the promotion mail its fine.
      Was this review helpful? 2
      , vijayawada
      Reviewed on Dec 07, 2018
    • ICICI Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using with the personal loan from the ICICI BANK from past four years, there service is too good, they have charged me nominal rate of interest in this loan and even processing fee they have charged me was nominal ,the loan amount they have given me was sufficient.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 07, 2018
    • ICICI Bank Personal Loan
      "Charges should be reduced"
      0.5 5.0/5 "Blown Away!"
      The customer support is good, they gave good support, initially they told charges would be low, they finally they charged high for the amount of Rs.1.9 lakh, I think they taken Rs.2500 processing fee +7500 for some other charges. Finally I got Rs. 1.8 lakh in my hand.
      Was this review helpful? 1
      , vijayawada
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Easy to approch"
      0.5 4.0/5 "Great!"
      First time I have used this site to take the personal loan through online, the customer support is good. I came know about Bank Bazaar application through online, the website is very simple and to see all the offers in the market. I have been using mobile app is very easy.
      Was this review helpful? 2
      , mumbai
      Reviewed on Dec 07, 2018
    • IndusInd Bank Personal Loan
      "Interest rate should be reduced"
      0.5 4.0/5 "Great!"
      The response is very good for the loan amount they have gave me 14%, the loan amount approval is good. The processing fee is there for the amount Rs. 5 lakhs, the process is easy. Everything is good expect the interest rate it would be great if they reduce.
      Was this review helpful? 3
      , mumbai
      Reviewed on Dec 07, 2018
    • Kotak Personal Loan
      "Not user friendly loan"
      0.5 3.0/5 "Satisfactory"
      Got my personal loan 2.5 years ago. I have received the loan amount of 4.5 lakhs and they have provided me a interest rate of 17% which is quite high. Processing fee also high. I have paid the EMI of Rs. 12000 and i have selected the tenure period of 5 years. There is no partial payment and pre-closure facility available.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 07, 2018
    • ICICI Bank Personal Loan
      "Not recommendable bank"
      0.5 4.0/5 "Great!"
      Bought my personal loan 2.5 years back. I have received the loan amount of Rs. 1.50 lakhs. They have given me a interest rate of 15% for this reason i have done a balance transfer to some other bank. I have paid the EMI of Rs. 5000 for the tenure period of 3 years. I have received the loan on time and the documentation process is quite easy.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 07, 2018
    • IndusInd Bank Personal Loan
      "Not recommendable bank"
      0.5 5.0/5 "Blown Away!"
      I have purchased the loan 1.5 year back. They have offered me a interest rate of 11.28% and I'm happy about the interest rate. I have applied the amount of Rs. 7.8 lakhs and i have received the same. I got the loan on time. I pay the loan amount of Rs. 170000 approximately and i have chosen the tenure period of 5 years. They should inform the partial payment facility to the customer.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have been using BANK BAZAAR services for a while . The customer services is very responsible and helpful compare to others . I can compare every financial product from one website . So far it has been very good experience with bank bazaar . .
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Timely saving website"
      0.5 4.0/5 "Great!"
      The comparison option is good about the many banking information its helped to chose the best thing at one point.I got so many calls rather going to the bank. Bank Bazaar helped me to get call from the bank its made the process very faster. But value added response is not quick. I suggest it should be faster and the frequent call should be avoided.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Early Salary Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I took a Personal Loan from the EARLY SALARY , the loan amount was satisfactory and it was a very fast service when I needed money. Overall it is very useful when you require money for emergency purposes. The tenure period is 1 month . Customer service is good and prompt .
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Tata capital Personal Loan
      "Process should be simple"
      0.5 4.0/5 "Great!"
      The experience was average, because they were multiple call for the same request. I uploaded the documents then again collected physical documents again they came for signature. Finally they taken 15 days to sanction the loan and I felt the interest is higher.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      BANK BAZAAR provides the best service for me because i never expected this much soon i will receive my loan this much soon , i did not face any issue at the time of documentation . Website and is very easy to use with bank bazaar. Overall it has been good experience with bank bazaar .
      Was this review helpful? 2
      , mumbai
      Reviewed on Dec 07, 2018
    • Early Salary Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I took a Personal Loan from the EARLY SALARY , there are so much hidden charges they charge 3000 rs without my knowledge . The loan application process took few days . The loan amount was credited to my account with in no time. The interest rates are also nominal when compared to other banks in the market.
      Was this review helpful? 1
      , mumbai
      Reviewed on Dec 07, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar makes it easier to compare and choose various financial products online. Customer service is good they are very prompt . Website is very easy to use of bank bazaar . So far it was good experience . Mobile application also good to use . My loan experience is good .
      Was this review helpful? 3
      , jodhpur
      Reviewed on Dec 07, 2018
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