MyLoanCare is a FREE of cost service for borrowers

Get Cashback of Upto ₹ 1,000* on Business Loan Apply Online

MyLoanCare Customer Ratings - 4.5/5.0

Mudra Loan Apply Online

Mudra Loan Online Application

Last Updated 23rd Sep 2020

  • Individuals and MSMEs can apply for a Mudra loan online to grow and expand their business, manage cash flow and to meet their working capital requirements.
  • PM Mudra Yojana is categorized into three main categories i.e. Sishu for loans upto ₹ 50,000 , Kishor for loans upto ₹ 5 Lakh and Tarun for loan requirements upto ₹ 10 Lakh.
  • Sishu loans can be taken to start a business, Kishor for an already established business seeking additional funding and Tarun for well-established firms.
  • Individuals can avail mudra loan offline by visiting the bank or online by visiting the official website.
  • Individuals are required to furnish certain documents for mudra loans such as application form with passport size photos, identity proof, address proof and business address proof.

Mudra Yojana Application

Mudra Loan, a scheme under Pradhan Mantri Mudra Yojana (PMMY), is an initiative by the Government to help individuals and Micro, Small and Medium Enterprises (MSMEs) to grow and expand their businesses, manage cash flow and to meet their working capital requirements. Micro-Units Development and Refinance Agency (MUDRA) provides mudra loans under three main categories named as Shishu, Kishor, and Tarun.

  • Sishu - It provides credit up to ₹ 50,000 for starting a new business
  • Kishor - It provides credit up to ₹ 5 Lakh for already established businesses seeking additional funding.
  • Tarun - It provides loans up to ₹ 10 Lakh for well-established businesses.

Mudra Scheme offers loans upto ₹ 10 Lakh to non-farm sectors, non-corporate and small or micro-enterprises. This loan can be taken for a maximum period of 5 years without submitting any security as collateral. One can apply for Mudra Loan under PMMY both online and offline from public sector banks, private sector banks, NBFCs, co-operative banks, small finance banks, regional rural banks and microfinance institutions.

Procedure to Apply for Mudra Loan Online

Individuals can apply for the Mudra Loan online to save time and experience a hassle-free process. The steps to apply for the Mudra loans online are as follow:

  • Step 1: Visit the bank official website
  • Step 2: Download the loan application form
  • Step 3: Fill the application form and provide details
  • Step 4: Submit the application form and provide all the required documents
  • Step 5: Bank’s representative will connect with you and further proceed with loan formalities from the desired bank
  • Step 6: Once the loan application form and attached documents are processed and verified, the loan shall be approved, and the bank will disburse the amount

Procedure to Apply for Mudra Loan Offline

Individuals are also provided with the facility to apply for the Mudra loan offline by visiting the financial institution. An individual can follow the steps mentioned below to apply for MUDRA loan:

  • Step 1. Select the financial institute

    An individual must research about the banks that offer mudra loans. One must check the rate of interest charged and other important parameters like features and charges associated to it. One should select the bank for the loan after the complete research.

  • Step 2: Keep the relevant documents ready

    Individuals need to have all the relevant documents required to avail a MUDRA loan. The documents include identity proof address proof and proof of business.

  • Step 3. Fill the loan application form

    Individuals then have to fill the Mudra loan application form and add their personal and business details. They are required to ascertain the amount they want to avail before knowing how to apply for Mudra loan scheme.

  • Step 4: Loan Approval

    If all the documents and information provided is authentic, then the bank will approve the loan and the desired amount shall get disbursed to the individual bank account within specified working days.

Documents required to apply for Mudra Loan

The documents required for MUDRA loans are:

  • Application form
  • Written Business Plan
  • Passport-size Photos of the loan applicant
  • Identity Proof which includes Aadhaar Card, PAN Card, Driving License, Voter ID Card or Passport
  • Address proof which includes Passport, Aadhaar Card, Voter ID Card, Landline Bill, Registered Rent Agreement, Driving License, Bank Statement, Passbook or Utility Bill
  • Address proof or Rent agreement of business
  • Identity proof of the business.
  • Income Tax Returns for the past three years.
  • Relevant documents in case applicant belong to SC/ ST/ or any other special category and intend to avail loan under those categories

FAQs

Is Mudra loan applicable to all the banks in India?

No, mudra loans do not apply to all the banks. One can apply for Mudra loans from public and private sector banks, NBFCs, co-operative banks, small finance banks, regional rural banks and microfinance companies. Some of the leading banks offering Mudra loans are SBI, ICICI Bank, HDFC Bank, Kotak Bank, Bank of Baroda, and IDBI Bank.

Where can I get a Mudra loan?

You can get Mudra loans from most of the banks and NBFCs. Some of the top banks offering mudra loans are ICICI Bank, Indian Bank, Bank of India, Central Bank of India, IDBI Bank, HDFC Bank, Bank of Baroda, HDFC Bank and State Bank of India.

Can I apply online for Mudra loan?

Yes, individuals are also provided with an option to apply for mudra loans online at the bank's website.

Who is eligible for Mudra?

Eligibility criterion of the Mudra loan is as follow:

  • The minimum age of the individual must be 18 years, and the maximum mudra loan age limit is set to 65 years.
  • Non-farm income-generating businesses can avail loans in trading, manufacturing and services.
  • The requirement of credit must not exceed ten lakhs.
  • Entities must be engaged in allied agriculture services since 1st April 2016.

*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More