Home Loan How to get Mudra Bank Loan

How to get Mudra Bank Loan

April 22, 2019

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What is Mudra Loan?

The Prime Minister of India launched a Scheme named Pradhan Mantri Yojana that is offering to support the businessmen who have small amount of capital and want to grow in future. Under this Scheme the funding for the business would be provided by the government, on the condition that such funding is will be loan on which a less rate of interest will also be charged. So this loan provided to the businessmen is known as Mudra Loan.

Categories of Mudra loan under Pradhan Mantri Mudra Yojna

Shishu: Loan of up to Rs.50,000/=
Kishor: Loans of above Rs.50, 000 to Rs.5 lakhs.
Tarun: Loans of above Rs.5 lakhs to Rs.10 lakhs.

Documents required for availing Mudra Loan

The Pradhan Mantri Mudra Yojana application form that is duly filled.
Vehicle loan application form that is duly filled.
2 passport sized photos of the borrower.
Photo identity proof and address proof and income proof.
Last 6 month’s bank statement.

Application Form of Mudra Loan

Tenure of Assistance

The tenure of the financial assistance through the MUDRA Loan is based on the economic life of the asset created and also the cash flow which is generated. However, the MUDRA loan refinances assistance will be for a maximum tenor of thirty-six months which will also be aligned to terms of allotment of MUDRA funds by Reserve Bank of India from time to time.

Repayment

When it comes to repaying the loan, the term loan is to be repaid in suitable installments with suitable moratorium period as per cash flow of the business and according to the rate of the interest. The renewal and the annual review are done as per the internal guidelines of the Bank.

Banks providing Pradhan Mantri Mudra Yojana for Mudra Loans