Eligibility for Mudra Loan

 

Eligibility for Mudra Loan

Formally launched in the 2015 Union budget of India, the MUDRA scheme or the Pradhan Mantri Mudra Yojana (PMMY) was aimed at providing financial assistance to the small scale entrepreneurs located in remote areas, outside the access of regular areas of banking functionality. Having traced down through the NSSO survey, about 58 crore worth of small businesses have already served as the initial set of target clients for the Mudra Loan scheme.

Talking at length about this institutionalized facility that extends a helping hand to all the start-ups and small enterprises or otherwise referred to as the ‘micro units’ of the country, the ‘Micro Units Development and Refinance Agency’ (MUDRA) Ltd. is exclusively directed towards the funding needs and demands of the non-corporate business ventures in the country.

Scheme Guidelines

Certain tasks undertaken by the Mudra Yojana banks involve preparing and launching the policies in accordance with the approved guidelines of the scheme and making sure that it is implemented with efficiency. Along with the increased involvement of Micro Finance Institutions (MFIs) in the scheme’s plan of action, their registration and regulation have become a priority too.

In addition to the basic structure of credit guarantee, creating a solid foundation for the MFIs and the micro units to attain their optimum or desired capacities of efficiency has been focused on at large by this scheme too.

But, having talked about the scheme and its point-of-focus, the basic eligibility to avail the said financial services under the same has been specified by the government as well.

Basic Eligibility criterion

These target business clients were handpicked carefully as they proved eligible to avail the services of the Mudra Yojana scheme that lays down certain conditions to be satisfied for the same like:

  • The business unit should be either one of the following:
  1. Small manufacturing unit
  2. b) Shopkeepers
  3. c) Fruit and vegetable vendors
  4. d) Artisans
  • The bank classifies the targets into 3 broad categories with each availing a maximum amount as loan to their credit:
  1. Shishu – up to Rs. 50,000
  2. Kishore – up to Rs. 5,00,000
  3. Tarun – up to Rs. 10,00,000
  • A recent addition to the Mudra Yojana fund grossing up to Rs. 1,00,000 crore has been further allocated amounting up to 40%, 35% and 25% respectively to each of the 3

Thus, in technical terms, the loans that are extended to the non-farm income generating ventures in manufacturing, trading and service provision sectors, that amount up to less than Rs. 10 lakhs by the public sector banks to the regional rural banks to the state co-operative banks and urban co-operative banks fall under the PMMY scheme and become what is called ‘MUDRA loans’.

Eligible Institutions

Another pressure point in the scheme is the type of eligible lending institutions that can practice this scheme and extend financial assistance to the eligible borrower base. A rough idea of the same can be inferred from the technical definition of Mudra loans like the regional rural banks, scheduled commercial banks and state to urban co-operative banks. In addition to these institutionalized lenders under the Mudra Yojana scheme, we do have another list of;

  1. Micro financial institutions like societies and trusts
  2. NBCFs and MFIs that have been subjected and approved to implement the scheme.

As a result, around 27 public sector banks to 17 private sectors as well as 27 regional rural banks and 25 micro-finance institutions have already been activated under the Mudra Yojana scheme for credit enhancement activities.

Eligible categorical classification as per the Micro Units

With the growth stage of the venture taken as a basis of classification, the approaches to development strategy and funding requirements for these has been put into 3 categories:

  • Shishu category – Features exclusive structure designed for start-ups in need of financial support up to the amount of 50,000.
  • Kishore category – Here the small ventures that have had business operations in the past but are yet to be officially established are focused upon and helped with loans from Rs. 50,000 to Rs. 5 lakhs.
  • Tarun category – This division looks after the business enterprises that are fully established and functioning but do lack a prominent financial foundation to fall back on the business deals with loans extended from Rs. 5 lakhs to Rs. 10 Lakhs.

Once cleared all the eligibility checks of the respective category of business, the application into the Mudra Yojana scheme varies too in accordance with the categories you fall in.

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  30 Responses to “Eligibility for Mudra Loan”

  1. I want to apply in this regard for mudra loan upto 10 lac

  2. HI ,

    I have started a garment manufacturing unit in peenya form last one month, i have orders but i dont have sufficient money to run the operations. Can you please help me in getting this loan , i have a good track record in the loan i have taken earlier.
    It will be great helpful if i get a loan for now for 10 lakhs.
    please let me know if any documents is required fo rthe same and the rate of intrest for this laon as well

  3. Hello,
    I and my friends were working in reputed visual effects company in Kerala.But now we have decided to set up a company of our own.We have various freelance works in our hand but we don’t have the finance to buy high configured computer systems for doing these works.It will be great if we could get an amount of Rs 1 lakh to purchase and kick start our new venture.

  4. Mudra Yojana Loans are for backward castes or any one can apply..

    • any one can apply for this loan.

      • Dear Sir/Madam,
        I have visited 3 banks and continuously taking followup sincece last 3 months, All documents are cleared but bank is not giving approval. All banks saying you take loan from bank not from mudra.
        Please confirm me that can i get loan from mudra ?

  5. RESPECTED SIR,
    With due respect I inform you that I am doing Business for Eight Year to till now ( CYBER CAFE, 1 MINUTE PASS PORT PHOTO , PHOTO EDITING , SONGS DOWNLOADING ON MEMORY CHIP , DOCUMNET SCANNING , DOCUMENT LAMINATION , PHOTOCOPIER XEROX , EASY RECHARGE , E-TICKETING TRAIN & PLANE , DOCUMENT PRINTING AND MOBILE REPAIRING & SALE ). I am doing Business successfully so i want doing extra Business but I can not start any more business because i have not sufficient money. i have loan 2010 from Pradhan Manri Rojgar Yojna. i have full repayment the loan amount rs. 148000 in 2014. would you like to give me loan.
    thanking you.
    yours faithfully
    Nagendra prasad

  6. sir,i do my small business like shaving brush,sheo brush,tiolet brush,wiper,mop,cloth brush etc,plus mobile recharge business,sir i am having tin and vat no.,i need more money to improve my business,my yearly turn over….10-12 lakhs only,so plz help me sir to get the loan,,i went to sbi bank purani godown branch gaya and talked to the concern person mr, sanjay sinha(FO).,and he told me i can’t give u loan bcs it ‘s for poor people,i am also poor,having two child and facing problem to run my family and that would be helpful for me..so,plz help me sir…

  7. Dear Sir / Madam ,
    I have started a private limited company for health products marketing unit in peenya form last one month, i have orders but i dont have sufficient money to run the operations. Can you please help me in getting this loan , i have a good track record in the loan i have taken earlier.
    It will be great helpful if i get a loan for now for 5 lakhs.
    please let me know if any documents is required for the same and the rate of interest for this loan as well

  8. मुझे छोटे यूनिट के लिए बैंक ऑफ़ महाराष्ट्र की तरफ से मुद्रा योजना के तहत लोन मिल सकता है

  9. Muje bank of baroda se 50000 ka loan le raka hai pmmy ke tahat
    ab mujhe 500000 tak loan lena hai kya mujhe mil sakta hai kya
    mai four kist return kar chuka hu
    pahla loan deposit karane par
    please reply

  10. Hello, i am completed Diploma (Mechanical Engineering) I want to be an entrepreneur by starting vehicles body wash service center. can i able to get this loan under Tarun scheme

  11. Dear sir
    I’want to starting printing press, but idont. Have enough amount we ar looking for the mudrayojana loan how to apply the loan and which bank given to loan

  12. I am from Dhekial, Golaghat, Assam. I have a cutting tailoring & embroidery centre. I want to expand my business. So I visit our nearest UBI branch ask for Mudra Loan near about Rs. 150000.00 . The bank manager ask me for liquid security or a guarantor. Then I give a guarantor. The bank manager again refused me because the permanent residence of my guarantor is 20 km away from the bank. My all relatives are live minimum 20km away from the bank. What can I do now?

  13. Sir,

    I am a graduate and complete my post graduation diploma in software commercial application i want to start to on shop with internet related all -in-one every person any work with online then one-stop at my shop is eligible to start my business how much i get information and with out surety which bank give loan pl. give me details to my mail and i expected to need to my business loan apprx. 4 Laksh how to apply the loan and which bank given the loan of Pradhanamantri MUDRA Yojana

    Thanks & regards

  14. i am graduate of MBA in HR and Marketing want to start a cement and concrete product manufacturing plant at my own land looking for 5 lakh loan purity can be given if i get replay defnatly i am ready to grow and make support to new entrepreneur once i stand

    • Me bank me mudra loan k liye mila tha bank vale ITR or Mortgage property mang rahe he to me kya karu new business saru karna he to mere pass ITR OR PROPERTY NAHI HE MEKYA KARU
      I am at Rajkot GUJARAT
      PLZ GIVE ME SUGGESTION

  15. sir, i am in air conditioning service experience and contacts last 30 years and manufactured chocolate machines by customer requirement,
    now i am planing established continues chocolate machinery’s manufacturing unit at Andra pradesh state, required amount 10 lacks.
    please help me how to apply PM MY loan and what is required documents

  16. Hi,
    I want to start a Water Purifier Business, I want the loan amount of rupees 4 to 5 lacks, Please advice me on the following points
    1)Is this scheme is applicable for new business/start ups ?
    2)Do we need to submit educational document in banks
    3)Do we need a granter for this business.

    Thanks & Regards
    Pravin

  17. Hi Sir/Madam,
    I am from Aurangabad(Maharashtra)
    I wants to take loan for starts my new dairy product business, & then i am going to make it dairy product plant & i have setted much and more ideas for that, i have much n more automobile ideas also, i just need a financial help.
    I did enquiry in many banks about mudra loan yojana but i got different answers by every bank manager like-
    1. we have comleted our target of number of customers, so now can apply next time when government will launch this schem again.

    2. You will have to apply for loan at that area bank where you want to do your business.

    3. It’s mandatory that your bank account should b 6 months old in our branch.

    please clarify the eligibility conditions,
    if you have created this comment concept to take feedback from people so reply them too.

  18. Dear sir
    I am suchet Nayak from HUBLI karnataka. i am tax payer, and i am the joint owner of one property. I went to bank for apply loan to start new grossery business in our own building and my project cost was 12lacks and i already invested 5lacks. But when i asked loan the banker told me that if you want loan of 8lacks you should have 16lacks FD in our bank. So i want to ask that if I have 16lacks in my hand why should I apply for the loan. So can you please tell me what is mudra loan.

  19. My father has a Garments business. Now the business is entrusted to me. But I don’t have sufficient working capital because of which I lose so much of business. Can the mudra ayojana scheme help me? I am from vizianagaram in Andra Pradesh. I am 37 years old. Please guide me.

  20. Hi my self anil, I have completed post graduation in Tourism sectore. I am planning to start my own company in service sectore. Kindly let me know whether mudra loan is applicable for service sectore and what are the documents to be submitted.

  21. Dear Sir/Madam,
    I have visited 3 banks and continuously taking followup sincece last 3 months, All documents are cleared but bank is not giving approval. All banks saying you take loan from bank not from mudra.
    Please confirm me that can i get loan from mudra ?

  22. sir aap ki ye scheme me mujhe intrest hai mujhe glass designaur furniture ka shop dalna hai maine ITI bhi kiya hai carpenter se so plz contact me

  23. Dear Sir,
    My brother is shopkeeper very aggressive and active in doing business and he want to expand his business but whenever he went any bank in chhatarpur (madhya pradesh) , officials always said we have not money for such type of scheme. sir i want to know he can get benefit of this scheme or it just work on paper.

    thanks

  24. RESPECTED SIR,
    With due respect I inform you that I am doing Business for Eight Year to till now ( CYBER CAFE, 1 MINUTE PASS PORT PHOTO , PHOTO EDITING , SONGS DOWNLOADING ON MEMORY CHIP , DOCUMNET SCANNING , DOCUMENT LAMINATION , PHOTOCOPIER XEROX , EASY RECHARGE , E-TICKETING TRAIN & PLANE , DOCUMENT PRINTING AND MOBILE REPAIRING & SALE ). I am doing Business successfully so i want doing extra Business but I can not start any more business because i have not sufficient money. i
    thanking you.
    yours faithfully
    sanjay yadav

  25. I want 40-50 lakh. I am doing this from earlier . My incoming is approx 5-6 large per year. I have been filling the income tax return from 06 years. Because of market problem my old buisness is not going well. So I have started a new business named vinay Door&ply house at muzaffarpur bihar. I have registered this business on bihar commercial tax and DIC department. I am ready to give guarantee on my land against my lone.

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