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How To Apply For Mudra Loan?

How To Apply For Mudra Loan?

Are you planning to set up a business and are looking for funds? Are you a business person with limited capital but wish to expand your business in future? Is your small business lacking strong financial support and monetary backup? Then, MUDRA yojana might be something that could interest your business goals and might help your small business reach successful heights. If you are wondering how to apply for Mudra Loan, then this is the place for you.

MUDRA or Micro Units Development & Refinance Agency Limited, launched by the Hon’ble Prime Minister on April 8, 2015 , aims at providing financial support to  non-corporate, non-farm small/micro enterprises..

Under Mudra loans, three basic schemes are designed to cater to the funding needs of the beneficiaries. These are:

  • Shishu – loans sanctioned up to INR 50,000.
  • Kishore – loans sanctioned above INR 50,000 and up to INR 5 lakhs
  • Tarun – loans sanctioned above INR 5 lakhs and up to INR 10 lakhs

Whether you are a small artisan who needs the loan for the restructuring of your business or someone who needs the loan for purchasing machinery or plant, all of these loans are covered under Mudra scheme. So, if you think that this loan could uplift your small business, and if you are unsure about how to apply for a mudra loan, read this article to know more.

Who Can Apply For Mudra Loan?

Before you ask yourself how to apply for Mudra Loan, you need to the eligibility criteria of the loan. Any Indian  citizen above 18 years of age who wishes to enter into any non-farm sector generating business ventures (such as processing, trading, service sector or manufacturing, etc.) and whose funding needs are less than INR 10 Lakhs is eligible to apply for MUDRA loan. Since the loans are not directly offered by MUDRA, one must approach either  Banks, MFIs, or NBFCs in order to avail this loan.

The interest rate is a key point to note while applying for any loan. The interest rate under the MUDRA scheme will vary from bank to bank

The target units for Mudra loans include service sectors such as fruit/vegetable vendors, repair shops, truck operators, shopkeepers, artisans, and other small manufacturing businesses in both rural and urban regions of the country.

The Mudra loan can also be applied for if one needs to purchase commercial vehicle or machinery related to business purposes. You can have a closer look at the eligibility criteria of mudra loan.

How to Apply For Mudra Loan?

The process of availing Mudra loan is relatively simple and easy. And the good news is that there is no processing fee or charge to apply for this loan.

The first thing you should do is approach the banks or the financial institutions that provide Mudra loan.

For the purpose of working capital limit, MUDRA has launched a new product called “MUDRA Card”, which is a Debit card issued on RuPay platform, and provides hassle free credit in a flexible manner.

Mudra card works in the form of Cash credit or Over Draft, using which is as simple as using your debit or credit card. The borrowed money can be easily withdrawn from any ATM or Point of sale credit card swiping machines.  You can also make your purchase online using e-commerce websites or at any POS machine.

The second step involves filling up the checklist of documents that are required for the verification. In order to avail the loan, the beneficiary will have to propose their business idea along with the basic loan application form. You need to also provide KYC documents such as PAN card, Aadhar card, or driver license, address proof.  In case of existing businesses you will have to provide a proof of the continuity of your business and financial statements. Once application form, and other necessary documentation and formalities have been completed, the loan under Mudra scheme will be sanctioned by your bank provided the bank finds the proposal feasible and viable and the candidate is able to meet the terms and conditions.

There are many public sector banks, private sector banks, microfinance institutions, non-banking financial institutions, and regional rural banks that currently provide Mudra loans. Some of the banks that deal with Mudra loans are ICICI Bank, State Bank of India, UCO Bank, Canara Bank, Allahabad Bank, HDFC Bank, Axis Bank, etc. It should be noted that in order to apply for this loan, the borrower must not be a defaulter of any banks or any financial institutions..

Why deAsra?

Are you worried by the fact that availing Mudra loan requires you to approach multiple counters of the banks or other secondary financial sources? Moreover, are you unclear about how to propose your business idea and do other application formalities? Well, if these questions trouble you, don’t fret anymore.

This is where deAsra comes in.

From checklist requirements to other application services, we would support you with all the necessary details that are required in order for you to apply for loans under the Mudra scheme. Moreover, if you want us to help with your business proposal, our experts will surely assist you.

Our team of experts has helped many businesses grow and prosper by aiding their business initiatives through various loan services. So, why not let us make your loan-availing experience a hassle-free experience!

Start Your Business Now!

One of the basic hurdles in the enhancement of any non-corporate small business (NCSB) is the lack of proper financial support. There is no denying that the NCSB has largely been neglected and marginalized for long. Therefore, MUDRA initiative emerges as a saviour for all micro-financing units and small businesses that need financial support.  And because deAsra believes in your entrepreneurial success too, our team works rigorously towards making this happen for you.

If you think that your business needs a little financial push and you are still not sure of how to apply for Mudra Loan, reach out to us and we will help you in this journey.

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10 thoughts on “How To Apply For Mudra Loan?

  1. Hello,
    I’m looking for startup or mudra loan to start business. So I need your help and guidance to get loan.

  2. Dear sir,
    I have a licence as government contractor In zilla parishad Akola. Work limit 15 lank rupes.
    But sir my financial condition is week.
    No money for get a more work contract
    So I need a bussniss loan plz help me

    1. Hello Sahil. There are a few prerequisites that are required to apply for a loan. We can help you to create a funding proposal which you can take to your financial institution. To avail this service, please give us a call on 8669985599.

  3. Sir, I am planning to start new business in food business pl let me suggestions on how to get mudra loan upto Rs 5L

  4. Hello,
    I left job and have started doing business of Shower Panels, Multifunction shower and steam generator from last 8 months from a small office (Out of which almost 2months gone in lockdown) I want to grow my business by having a proper shop (may be rental) to expand my business. As the Impact of having a showroom or a shop will be a plus for this kind of business. Moreover I can accomodate more products related to this as sanitaryware.
    I would like to know what kind of loan would be best for me, if I require funds upto 5lakhs. And Can I avail loan?
    Also, I have never took any loan for business so far. But has home loan going on which so far has never been defaulted even for a single month in last 8 years. My Cibil rating is over 800.

  5. Hii, Mera already ladies beauty parlour tha accha running business tha, but lockdaun ki vajhase maine o band kar diya hai to mujhe abhi vaps restart karana hai to plz muje Mudra loan lena hai to mujhe guide kro..

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