Pradhan Mantri MUDRA Yojana was introduced by the Indian government in January 2015 under the leadership of Prime Minister Narendra Modi. MUDRA stands for Micro Units Development & Refinance Agency Limited. The government provides financial support to micro and small level business enterprises. There are many benefits for small business owners if they opt for a Pradhan Mantri MUDRA Yojana. The loan is available across India with specific but nominal eligibility requirements.
The loan is given to the borrowers under three main categories:
- Shishu:
In this loan category, an applicant can get a loan up to Rs. 50,000. The repayment period for this category is of maximum 5 years. The interest rate for this category is around 12%* but it changes as per the lending agency’s policy and applicant’s profile.
- Kishor:
In this loan category, an applicant can get a loan above to Rs. 50,000 but not more than Rs. 5 lakh. The repayment period and interest rate for this category is decided by the lending agency’s policy and applicant’s profile.
- Tarun:
In this loan category, an applicant can get a loan above to Rs. 5 lakh but not more than Rs. 10 lakh. The repayment period and interest rate for this category is decided by the lending agency’s policy and applicant’s profile just like the Kishor category.
Following is the list of documents required to avail a Pradhan Mantri MUDRA Yojana business loan:
- Passport-size photographs.
- Neatly filled Pradhan Mantri MUDRA Yojana form.
- Identity and signature proof – Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
- Address Proof – Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
- Age Proof – Voter ID card/ Secondary school leaving certificate (class 10)/ birth certificate/ Passport/ Aadhar Card/ pension payment order/ receipt of LIC policy.
- Caste/ minority certificate (if applicable).
- Proof of identity/address of the business set up – copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
- Bank statements of past six months from application date.
- Last two years balance sheets of business units along with ITR details.
- Business project report (if asked by money lender) containing details of technical & economic viability.
- Balance sheet and Profit & Loss details of business from last 2 years. These details should be certified by CA.
- Proof of continuation which will include ITR, trade license, establishment and sales tax certificate
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