Micro Units Development & Refinance Agency Ltd. (MUDRA) is an ambitious scheme launched by the Central Government of India to assist small businesses in propelling their growth. Owners of micro to small businesses from manufacturing, trading and other sectors can secure financial assistance for up to Rs. 10 Lakhs through the e-MUDRA loan. Before applying for the credit, you must know its eligibility parameters in detail.
Eligibility Criteria for e-MUDRA Loan
Here are certain eligibility parameters that you need to meet to qualify for the e-MUDRA loan:
- Recipients of the loan must be 18 to 65 years old.
- Both new and existing business owners can get the loan.
- Applicants must have a small business in manufacturing, trading, agricultural-allied, or other sectors
- Their venture must be profit-making, or they should have a sound plan to earn revenue.
You also need to know the business sectors for which the Government of India has targeted financial assistance through this scheme.
Businesses in Which You Can Leverage the e-MUDRA Loan
You can easily get the MUDRA loan if you are an owner of the below-mentioned businesses:
|Food-Manufacturing Sector||You can apply for the e-MUDRA loan if you have a small business that produces food items like pickles, papad, bread, sweets, biscuits, ice cream, etc. Apart from these, if you have a small catering, food-storing or canteen service, you can apply for this credit facility to enhance your profitability.|
|Transport-Vehicle Owners||If you own commercial transport vehicles like taxis, e-rickshaws or three-wheelers, or agricultural vehicles like tractors, power tillers, etc., you can take the MUDRA loan to grow your business.|
|Shops for Providing Certain Services||You can finance your existing salons, dry cleaning, tailoring shops, two-wheeler repair shops, gyms, pharmacies, boutiques, courier agents, etc., by taking this loan.|
|Textile Business||Textile businesses like handloom, powerloom, traditional handwork, stitching, embroidery, dyeing, apparel design, knitting, cotton ginning, etc., fall under this category.|
|Agriculture-Oriented Business||You can get financial assistance to grow your farms of poultry, fishery, bee-keeping, livestock-rearing, dairy, pisciculture, etc.|
Features and Benefits of e-MUDRA Loan
Here are all the notable features and advantages of the e-MUDRA loan:
- You do not need to mortgage your properties to request for MUDRA loan.
- The credit also comes with zero restriction of end-usage.
- The MUDRA loan interest rate is comparatively lower than regular business loans. Furthermore, you can get a discount on the interest rate if you belong to a scheduled caste or scheduled tribe and have a relevant caste certificate.
- You can select a tenure of your loan between 3 and 5 years.
Financial Institutions That Extend e-MUDRA Loan
Here are the various financial institutions from which you can get a business loan under this MUDRA Yojana:
- Private sector banks
- Public sector banks
- Non-Banking Financial Institutions (NBFCs)
- Micro Finance Institutions (MFI)
- Regional Rural Banks (RRB)
- Small Finance Banks (SFB)
Step-by-Step Guide to Apply for e-MUDRA Loan
You can apply for the credit online via the Udyami Mitra Portal or the website of your chosen lending institution that offers a PMMY-integrated business loan.
Here are the steps you need to follow to complete your application process for the e-MUDRA Loan through Udyami Mitra Portal:
Step 1: Visit the portal
Step 2: Tap on ‘Apply Now’
Step 3: Click on ‘Category of Browser’ and state whether you are an existing or new entrepreneur
Step 4: Enter your name, email ID, contact number
Step 5: Click on ‘Generate OTP’ and enter the number correctly for successful verification
Step 6: Fill in the application form with personal and professional details
Step 7: Go to the ‘Loan Application Centre Option’ and click on ‘Apply Now”
Step 8: Select the type of E-MUDRA loan (Shishu, Kishor or Tarun), that will suit your requirements
Step 9: Enter your business details
Step 10: Attach necessary documents in PDF, JPG, BMP or PNG format
Step 11: Mark tick on the given checkboxes
Step 12: Click on ‘Submit’
After this, you will get your loan application ID.
Alternatively, you can also apply for the MUDRA loan online from lenders’ websites. For this, you need to follow the steps mentioned below:
Step 1: Visit the official website of your preferred lending institution
Step 2: Find the application form for the MUDRA loan
Step 3: Download the application form for any of the three types of MUDRA loan (Shishu, Kishor or Tarun) as per your fund requirement
Step 4: Fill in the form with the required personal, business or residential details
Step 5: Attach the necessary documents
Step 6: Verify the filled-in application form and then submit it to your lending institution
After this, lenders will verify your application and contact you for the next procedures.
Documents Required to Apply for e-MUDRA Loan
You need to submit the following documents while applying for the loan:
- KYC documents, such as Voter ID card, Aadhaar card, PAN card, etc.
- Caste certificate (if any)
- Business proof like GST returns, income statement, etc.
- Income tax returns (ITRs)
If you are a small business owner and eligible for the e-MUDRA loan, you can request credit assistance to invest adequately in your venture. It will help you establish a strong presence in the market and create growth opportunities.