• List of Banks offering Mudra Loan

    The Pradhan Mantri MUDRA Yojana or PMMY as the acronym goes, is a micro financing scheme that is meant for small industries that do not get ample amount of support from banks and other financial institutions due to lack of security and experience in business. The MUDRA Loan scheme is regulated by the Micro Units Development and Refinance Agency and can offer loans up to INR 50 lakhs to the trade bodies that need it.

    Categories of MUDRA Loans

    Mudra Loan is crafted into three options and each option is meant for the business that requires that kind of range of financial help. The three options available under the PMMY are as follows –

    1. Shishu MUDRA Loan – The beginner level loan option that can offer a loan amount of up to INR 50000 is the go to loan that can be taken up by almost any organisation to meet short term financial needs. It can bridge investment gaps, shortfalls in manufacturing processes or even for buying office appliances
    2. Kishore MUDRA Loan – This loan is a more versatile loan with a higher loan limit of up to INR 5 lakhs. The loans taken as per this can form the basis of any small business that needs urgent financing with respect to enhancing infrastructure and fulfilling manufacturing or production needs
    3. Tarun MUDRA Loan – The Tarun variant of the MUDRA loan allows for the maximum credit amount of INR 50 lakhs. Loans through this can easily serve as start-up funding for small to mid-size businesses that have plans for opening up in multiple locations.

    Popular Banks offering Business Loans under Pradhan Mantri Mudra Yojana (PMMY)

    The banks that are officially approved to offer business Loans must meet the following criteria as per their category –

    • Scheduled Commercial Banks –
      1. Must be either public sector or private sector
      2. Must have been in operation for 3 years
      3. Must have 3 continuous years of profit track record
      4. Must not have non-performing assets more than 3%
      5. Must have a minimum net worth of INR 100 crores
      6. Must have a Credit to Risk Assets Ratio of not less than 9%
    • Regional Rural Banks –
      1. Non-performing assets should not be more than 3%
      2. Credit to Risk Assets Ratio should be more than 9%

    The above criteria also applies to micro finance and small business companies.

    The banks that are currently offering business loans under the Pradhan Mantri MUDRA Yojana have interest rates ranging from 11% to 37%. Some of the more popular banks that are offering MUDRA loans are as follows –

    1. Oriental Bank of Commerce
    2. Kotak Mahindra Bank
    3. Standard Chartered Bank
    4. Indian Bank
    5. State Bank of Patiala
    6. Bank of India
    7. Central Bank of India
    8. IDBI Bank
    9. Citibank
    10. HDFC Bank
    11. Indusind Bank
    12. Dena Bank
    13. State Bank of Bikaner and Jaipur
    14. State Bank of Travancore
    15. Canara Bank
    16. Allahabad Bank
    17. Vijaya Bank
    18. Karur Vysya Bank
    19. UCO Bank
    20. Bank of Baroda
    21. Union Bank of India
    22. Tamilnad Mercantile Bank
    23. Indian Overseas Bank
    24. South Indian Bank
    25. Bank of Mahrashtra
    26. State Bank of Hyderabad
    27. HDFC Bank
    28. State Bank of India

    Frequently Asked Questions (FAQs)

    1. Which banks offer business loans under Pradhan Mantri Mudra Yojana(PMMY)?

      All scheduled commercial banks and regional rural banks can offer business loans under Pradhan Mantri Mudra Yojana (PMMY).

    2. Is there any criteria which needs to be fulfilled by banks for offering mudra loans?

      Yes, certain criteria's need to be fulfilled in order to offer mudra loans. It varies depending on the category.

    3. Under Pradhan Mantri Mudra Yojana(PMMY), how many categories of MUDRA loans are available?

      There are three options available under Pradhan Mantri Mudra Yojana (PMMY). They are – Shishu Mudra loan, Kishore Mudra loan, and Tarun Mudra loan.

    4. What is the maximum credit amount for Tarun Mudra loan?

      The maximum credit amount for Tarun Mudra loan is Rs.50 lakh.

    5. Who regulates the mudra loan scheme?

      The Mudra loan scheme is regulated by the Micro Units Development and Refinance Agency.

    6. What should be the credit to risk assets ratio for regional rural banks for offering business loans?

      The credit to risk assets ratio for regional rural banks must be more than 9%.

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