Multiple banks. Different interest rates. Call it a "conflict of interest".
Multiple banks. Different interest rates. Call it a "conflict of interest".
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    Mudra Loan Eligibility

    What is Pradhan Mantri Mudra Yojana?

    Pradhan Mantri Mudra Yojana is a special scheme set up by the Government of India through an institution named Micro Units Development & Refinance Agency Limited (MUDRA) in order to provide financing aid through loans to the non-corporate non-farm sector income generating activities of micro and small entities (subject to those enterprises with credit needs below INR 10 lakhs).

    The Pradhan Mantri Mudra Yojana (PMMY) has three facilities or options available for catering to enterprises at different stages of growth and financing needs. These options are Shishu, Kishore and Tarun.

    The basic eligibility criteria for Mudra Loans are

    • Indian citizens
    • Non-farm income generating activities
    • Non-corporate entities
    • Funds to be invested for business activities
    • Small business owners like truck operators, vegetable vendors, shopkeepers, fruit vendors, repair shops, artisans, paper/food processing units etc. are all eligible for Mudra Loans.

    On top of the basic criteria set by the government, lending institutions will have their own norms and guidelines for providing loans under the scheme. As such, you need to read the terms and conditions of your particular lender to ascertain the extra eligibility conditions that they might have put in place. You can check sample requirements for the Mudra Loan below.

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    Eligibility Criteria for Pradhan Mantri Mudra Yojana (Mudra Bank Loan)

    Mudra Loan Eligibility Criteria

    The loans availed as per this scheme can be used for multiple purposes, like vehicle loans for automobiles meant for commercial purposes, business instalment loans that can aid in working capital financing / purchase of plant and machinery / renovating the infrastructure and/or business loans group and rural business credit.

    A versatile loan as this has the following criteria to be met in order for the applicant to avail the loan

    1. The age of the applicant should be 23 years to 28 years at the time of the loan sanction and should not be more than 65 years at the time of the loan maturity
    2. The applicant should have monthly income above INR 17000 or INR 15 lakhs or more as annual turnover. The minimum profit after tax for non-individuals should be INR 1 lakh per year and for proprietorship/self-employed, it is INR 2 lakhs
    3. In case of salaried individuals, the minimum occupational stability should be 2 years and business stability should be at least 5 years, with 3 years’ service stability for doctors
    4. Applicants either have to have spent a year in the current residence or have a 1 year service relationship with the bank through which they are applying for the loan.

    Based on the different options available under the scheme, differing rates of interest and repayment tenures are available for loans availed under Pradhan Mantri Mudra Yojana (Mudra Bank Loan). Aimed to facilitate growth and prosperity of businesses and enterprises in the micro segment, these loans can be very helpful to ease any kind of financial crunches.

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    Mudra Loan Eligibility FAQs

    1. What is the eligibility criteria under the Mudra Scheme?

      The Mudra Scheme is applicable for Indian citizens who are investing in non-farm income activities like service, trading, processing and manufacturing with credit needs up to Rs.10 lakhs can apply for loans under the Mudra Scheme through any of the recognized intermediaries. These intermediaries include Public and Private Sector banks, NBFCs, MFIs, RRBs and other financial institutions.

    2. Do I need to submit my Income Tax Returns for availing Loans under this scheme?

      No, there is no directive from the central government regarding submission of ITRs. However, the lending institution may ask you for this under its own rules and regulations.

    3. Can I get the Mudra loan amount on the basis of my Savings Bank account?

      Yes, the loan amount may be requested on the basis of your SB account. The terms of the loan will be decided by the lending authority which includes amount of loan, interest rate and repayment tenure. The lending authority takes into account multiple factors before deciding the terms of the loan for each case.

    4. Which individuals can avail Mudra Loans?

      All Indian citizens including women, men, proprietary concern, private limited company, partnership firms and other such entities can apply for Mudra Loan.

    5. Can Physically Disabled/Handicapped individuals avail Mudra Loans?

      Yes, the scheme doesnt differentiate between applicants who fulfil the basic criteria and is applicable for all Indian citizens irrespective of region, religion, physical prowess, economic background etc.

    6. Do I need to provide PAN card for availing Mudra loan?

      There is no direction under the scheme for providing PAN card details. However, the lending institution may ask you to fulfil KYC norms which may ask for PAN details.

    7. What are the documents required for Mudra loan application?

      Documentation requirements are decided by the lending intermediary under RBI guidelines. You may approach any of the lenders to find what documents they are looking for.

    8. As a small dealer with my own shop of used goods, can I claim loan under the Mudra Scheme?

      Yes, the Mudra loan can be claimed through NBFCs, banks or MFIs. Service, trading and manufacturing units are included under the Mudra Scheme, with rational pricing of products to help their needs.

    9. Im newly graduated and joined the workforce just now, can Mudra Scheme assist me?

      Yes, you can get loans up to Rs.10 lakhs as per the three distinct bands namely Shishu, Kishor and Tarun. If your business requirements fall under the broad ambit of Mudra Scheme, you can approach any of the intermediaries for a loan under the scheme.

    10. What are security/collateral requirements for Mudra Loans?

      There are no security or collateral requirements for Mudra Loans, essentially making them unsecured loans.

      Know more about Mudra Bank Loan

      The Prime Minister Mudra Yojana (PMMY) is a loan scheme that plans to provide start-up capital or working capital loans which are unsecured to non-farm non-corporate income generating activities. Read more about Mudra Bank

    11. Check Mudra Loan Interest Rates from Different Lenders

      Mudra Loan interest rates are dynamic and vary from lender to lender. You can check the interest rates for loans from 33+ top institutions under the Mudra Loan Scheme here. Check Mudra Loan Interest rates from top banks here

    News About Mudra Loan Eligibility

    • Central schemes to be implemented more aggressively in Puducherry

      The Government of Puducherry has appointed and installed a five-member committee whose duty it is to monitor and report on the implementation of Central-government sponsored social security schemes. The Centre-sponsored social security schemes are going to be implemented in a more aggressive manner going forward, according to reports. This move comes in response to directives issued by the Union Finance Ministry, who communicated the need for such a committee to the Puducherry government.

      This special 5-member committee will consist of the following members:

      1. Head Chief Secretary.
      2. Nodal Officer of the Finance Ministry.
      3. Secretary of the Department of Rural Development, Puducherry.
      4. Nodal Officer of the State Level Bankers Committee.
      5. Project director of the District Rural Development Agency.

      The committee will focus on the implementation of the following schemes in particular:

      Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, Pradhan Mantri Mudra Yojana (PMMY) and Pradhan Mantri Jeevan Jyoti Bima Yojana. The 5-member committees functions will include regularly reviewing issues that arise during the implementation of these schemes and finding resolutions for the same.

      /></p><p><em>8th July 2016</em></p></div><div class=

    • Mudra Invests in Securitisation deal

      The Mudra Bank has announced an investment of Rs.50 crores in a securitisation deal struck with Janalakshmi Financial Services. The bank has made its foray into the capital market with this investment and aims to access the domestic capital market efficiently. Meanwhile, IFMR Capital has also invested in the same deal with Rs.1.63 crores.

      /></p><p><em>27th April 2016</em></p></div><div class=

    • Banks not pushing the MUDRA scheme in Odisha

      The objective of the government scheme Micro Units Development and Refinance Agency Limited (Mudra), is to provide finance to start-ups and encourage them as well to create employment options. But the States banks have been reluctant to do so. The government of the State of Odisha, were given a target of Rs 4,011 crore to be disbursed under the MUDRA scheme, but sources has said that the 43 banks in the state, have disbursed only Rs 1,425 crore. The scheme loans are Shishu (child), Kishore (adolescent) and Tarun (youth).

      /></p><p><em>3rd March 2016</em></p></div><div class=

    • Visakhapatnam, will have the new office of the MSMEDCI

      The MSMEDCI or the Micro, Small and Medium Enterprises Development Corporation of India, will have their new office in Visakhapatnam. The Reserve Bank of India Governor, Raghuram Rajan is all set to inaugurate the office on 4th March 2016. Pradhan Mantri MUDRA Yojana (Mudra Loan) launched the government of Narendra Modi to set up, and develop the micro, small and medium entrepreneurs. The scheme will offer loans to the maximum of Rs. 10 lakhs and will be provided by a network of 49 banks to small-scale industries.

      /></p><p><em>19th February 2016</em></p></div><div class=

    • Many jobs will be created, thanks to the Mudra Yojana says Union MSME Minister

      Silver prices gained 1.04% to end at Rs 37,557 per kilogram in futures trading today in India, as traders built up for fresh new positions.

      Union MSME Minister Kalraj Mishra, said that Mudra Yojana will create great job opportunities in the country. The Mudra Yojana has 3 scheme under this banner, namely the Shishu, Kishore and Tarun. Shishu scheme offers coverage of loans to Rs 50,000, while the Kishore loan covers amounts of above Rs 50,000 but up to Rs. 5 lakh, and the Tarun loan scheme covers above Rs 5 lakh and up to Rs. 10 lakh. He also spoke of the Jan Dhan Yojana, which has over 30 crore accounts opened through it, making it the largest ever in the world of financial inclusion.

      /></p><p><em>12th February 2016</em></p></div><div class=

    • Being a job creator will get you a Loan from the Government

      Instead of looking for jobs and building your careers, the government is offering you a loan of Rs. 1 lakh crore, to the youth of the country to become job creators instead. The loans will be offered to small entrepreneurs under the Pradhan Mantri MUDRA Yojana. The scheme will provide the youth of the country with an opportunity to be self-sufficient.

      ></p> <p><em>10th February 2016</em></p> </div> <div class=

    • Womens Safety Depends on Societys Acceptance of Its Need

      Union Human Resource Development Minister Smriti Irani has said that the society should understand the need for womens safety and work with the government to facilitate it. Speaking at the valedictory of Sthree Swabhimaan Yatra in Thiruvananthapuram on Sunday, Irani said the NDA government at the Centre has initiated many womens welfare schemes that focus on their safety and empowerment.Under the MUDRA scheme, the government extends bank loans of up to Rs. 10 lakh to women without any collateral security. The Jan Dhan Yojana for women would also facilitate their progress and financial security, she said.

      ></p> <p><em>8th February 2016</em></p> </div> <div class=

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