How to check MUDRA Loan Eligibility Criteria?

The Micro-Units Development and Refinance Agency (MUDRA) scheme is a government of India initiative under the Pradhan Mantri Mudra Yojana (PMMY) that aims to promote small businesses, micro-units, and MSMEs by providing funding through various banks to help them expand and grow their businesses. The cumulative loan sum under the MUDRA scheme is Rs. 10 lakh, with a 5-year repayment period. To apply for a Mudra loan, applicants are not required to send any collateral, insurance, or third-party guarantee. There are no application fees or foreclosure fees.

MUDRA Loan Eligibility Criteria

Mudra Loans were created by the Indian Government as part of the Pradhan Mantri Mudra Yojana (PMMY) scheme to assist small business owners in meeting their capital needs and operating costs through simple financing schemes. Anyone who owns or manages a small business is eligible to apply for a Mudra Loan. Here are the available points that help you to check Mudra Loan eligibility criteria:

• The borrower must be at least 18 years old, with a maximum age limit of 65 years for Mudra Loans.
• Non-farm income-generating businesses in trade, manufacturing, and services may apply for loans.
• The credit limit must be less than Rs. 10 lakh rupees.

Documents Required for MUDRA Loan

Here are some essential documents required to submit before availing of MUDRA Loan:

• Mudra Yojana Vehicle Loan Application Form must be filled out.
• 2 photographs of the claimant (passport size)
• Aadhaar Card, Passport, Voter ID Card, Driving License, and other forms of identification are appropriate.
• Aadhaar Card, Passport, Bank Accounts, Telephone or Energy Bill are examples of address evidence.
• Bank statement for the last six months as evidence of income

The loan Amount Offered by Several Banks Under MUDRA Loan

Mudra loan schemes are divided into three categories such as Shishu, Kishor, and Tarun. The minimum loan amount is unlimited, and the maximum loan amount is Rs. 10 lakh.

• Shishu: The maximum loan amount is Rs. 50,000. (For start-ups and business owners)
• Kishor: Amount of loan: Rs. 50,000 to Rs. 5 lakh (to meet working capital needs and business expansion for new and established businesses).
• Tarun: Loan amount is starting from Rs. 5 lakh and Rs. 10 lakh (For established enterprises to manage business cash flow).

List of top banks offering MUDRA Loans 2021

Who can avail Mudra Loan?

Here are the following kinds of business entities that help you to avail Mudra Loan:

• Shopkeepers and vendors: Shopkeepers and vendors may apply for a loan of up to ten lakh rupees for a variety of industry, trading, and non-farming activities.
• Textile industry: Textile industries, such as handloom, knitting, and khadi work, will benefit financially from this loan scheme.
• Food Production sector: Entrepreneurs in the food production sector, such as those who run food stalls, tiffin services, or cold storage, may use Mudra funding to grow their businesses.
• Agricultural activities: This scheme allows for loans to be used for dairy farming, livestock, fishing, and the improvement of small canals and wells.
• Services provided to a society or a community: Businesses that offer services to a group or society, such as beauty parlors and salons, gymnasiums, dry cleaning shops, medical shops, tailoring shops, and so on.

Conclusion                                   

Hope, the above description will help you to get the complete details for availing of the MUDRA Loan. In this article, you can check out the best banks offering MUDRA loans to individuals. You can also check out the eligibility check to avail of the loan. Apart from this, you can contact Afinoz.com for more details.