Question 1

1. How to get a Mudra loan?

Accepted Answer

Visit the nearest bank, non-banking financial company (NBFC) or micro-financing institutions for more details on terms and conditions of mudra loan and its eligibility

Question 2

2. Mudra loan eligibility criteria

Accepted Answer

1) Only citizens of Indian origin may apply for the mudra loan scheme. 2) The applying company cannot be more than 7 years old or with a turnover of more than Rs.25 crores. In these cases, company doesn’t qualify for the term ‘start-up’. However, you can get a mudra loan on an individual or personal level. 3) Banks run their checks thoroughly on the applicants and hence, it is advisable to present a solid plan of scaling up and repayment. 4) Applicants must comply with the lending bank’s terms & conditions pertaining to mudra loan. 5) Except for farm income generating individuals or cooperatives, businesses from across sectors can apply. Mudra loan provides a positive push to creating employment in the long run. The mission to empower individuals under the scheme has a multiplying effect on the community and immediate circle of the beneficiary as well.

Question 3

3. What are the Types of Mudra loan?

Accepted Answer

Mudra loans can be categorized into Shishu (Small loan- less than Rs.50,000), Kishor (Medium loan- Rs.50,000 to 5,00,000) and Tarun (Big loan- Rs.5,00,000 to 10,00,000).

Question 4

4. Why do need a Mudra Loan?

Accepted Answer

Mudra loan is a collateral-free loan with nominal interest rates. Business loans are not easy to avail, especially for people dealing in the unorganized sector and for those with little experience or business background. Since these loans are part of a mission-oriented initiative of the Government, it is suitable for all business owners to avail the mudra loan to their best advantage by filling the mudra loan application form.

Question 5

5. Which are the banks that offer Mudra Loans?

Accepted Answer

A good mix of public sector banks, private banks and other financial institutions have been authorised for Mudra loans. The numbers are as follows as of today- over 98 financial institutions. Out of these, 27 Public Sector Banks, 27 Regional Rural Banks, 17 Private Sector Banks, 2 Foreign Banks, and 25 Micro Finance Institutions (MFI) are authorized provide Mudra loans to business owners. You can visit bank branches to understand mudra loan eligibility further.

Question 6

6. Which Mudra loan is suited for starting my business?

Accepted Answer

Out of the three available categories of Mudra loan, the Shishu loan is the most suitable one for start-ups. Carry your relevant documents to fulfil the mudra loan eligibility and apply for the loan. Having a business plan to present will be professional and the authorities expect such sincerity from applicants.

Question 7

7. What documents are needed for Mudra loan approval?

Accepted Answer

Visiting the nearest bank branch you will need to furnish the following documents along with the application form. Identity proof Residence Proof Proof of belonging to a special category such as SC, ST, OBC, Minority, etc. Proof of Identity, Address, Licences of the Company (if any) Business plan or Item list with quotation to be purchased with loan amount (if any) 2 passport photographs (recent)

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Mudra Loan Eligibility – How to get a Mudra loan?

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