Pradhan Mantri Mudra Yojana Start Up India Loan For Business Startups

Pradhan Mantri MUDRA Yojana, Details, Loan Types, Eligibility, How to Apply, Branch Locator

Micro Units Development and Refinance Agency Ltd. [MUDRA] is an NBFC that promotes the growth of the nation's microbusiness sector. MUDRA offers refinancing to micro businesses as part of the Pradhan Mantri MUDRA Yojana Scheme. 44 Indian firms were recognized as Unicorn Start-Ups in 2021. After US & China, India has the 3rd largest startup ecosystem in the world. India had more than 61,400 recognized startups, according to the Economic Survey 2021–2022, which is remarkable. The MUDRA loan for entrepreneurs has been one of these really well-liked programs.

The Micro Units Development Refinance Agency was proposed in 2015–16 by former Finance Minister Shri Arun Jaitley. This was unveiled by Prime Minister Shri Narendra Modi on April 8, 2015. Mudra loan for startup firms is a terrific technique to raise money and is a major aid for aspiring entrepreneurs. It assists in providing them with the funds they urgently need to launch and expand their firm.

The Government of India has launched a few significant measures to make “doing business” in India simpler and more accessible during the past few years due to the fantastic rise in startups. When banks or microfinance institutions want to lend money to small businesses, MUDRA offers to refinance help. 
MUDRA offers refinancing to micro businesses as part of the Pradhan Mantri MUDRA Yojana Scheme. The additional goods are for the industry's development assistance. All beneficiary categories are being addressed with the products.

Documents Required For PM Mudra Yojana

  • Proof of Identity: Aadhaar Card/ PAN Card/ Passport
  • Passport Sized latest photographs
  • Previous loan documents, if any
  • Credibility Documents: Educational documents, past bank account statements
  • Well-Explained business plan
  • Balance Sheet of your business (Available for Kishore & Tarun loans)
  • Plan for Future Growth (Available for Kishore & Tarun loans)

MUDRA Loan Eligibility Criteria

  • To qualify for a Mudra loan for a startup, you must be between the ages of 18 and 65.
  • No collateral or third-party security is required.
  • For transportation vehicles, you may also get a loan.
  • This simple loan is available to traders, store owners, sellers, etc., and can be used for a variety of purposes.
  • These services can be useful to urban and rural entrepreneurs alike.

Process for Applying for MUDRA loan

The Mudra plan for startups' application process is rather easy to follow. You must first be informed of the category into which your startup endeavor falls. You must be able to comprehend your situation and needs, as well as how they relate to the requirements listed for each type of loan. After completing this, you can apply for the Mudra Yojana for Startups by following the instructions provided. Remember that certain procedures may vary according to the bank you are using.
  • Step 1: Go to the official website,
  • Step 2: Download and complete the application form. You must input your personal information and KYC information.
  • Step 3: The application form and other papers must be uploaded together.

Types of MUDRA loan

Through non-banking financial institutions, the Pradhan Mantri Mudra Yojna for Startups provides loans to small and medium-sized businesses. You can choose a loan amount of up to INR 10 lakhs depending on your eligibility for a Mudra loan for startups. Let's examine the three Mudra loans available to new businesses:
Shishu - The Shishu Mudra loan size can reach INR 50,000. This makes it best suited for companies in their early stages. The Shishu loan can assist in covering the start-up costs associated with constructing infrastructure, starting a company, or buying equipment or raw materials.
Kishore: After your firm is set up, you should continue to build it and expand it. The Kishore Mudra loan is available for loans between 50,000 and 5 lakh rupees.
Tarun: You can obtain a loan up to Rs 10 Lakh through the Tarun loan program. This sum might be quite beneficial in further developing your startup if you already have one up and running.
What Kind of Business Activities Are Financed by Mudra Loans for Startups?
Let's examine certain business endeavors for which entrepreneurs could use a Mudra loan for startups:
  • Small business owners and traders
  • Boutiques, beauty salons, gyms, repair shops, pharmacies, and tailor shops are examples of small companies.
  • Creating and selling food products: candy shops, food vendors, confectioners, and caterers.
  • Food processing, poultry, fisheries, animal husbandry, and ancillary services are all agriculture-based businesses.
  • Printing, embroidery, and power loom for the textile industry.
MUDRA has developed goods and programs under the auspices of the Pradhan Mantri Mudra Yojana (PMMY). The interventions have been given the names "Shishu", "Kishore" and "Tarun". It is to represent the stages of growth and development and the financial requirements of the beneficiary micro unit or entrepreneur. Its use of it is to serve as a point of reference for the upcoming phase of graduation or growth:
  • Shishu: providing loan coverage up to Rs. 50,000.
  • Kishore: financing loans exceeding Rs. 50,000 and up to Rs. 5 lakhs.
  • Tarun: covering loans up to 10 lakh.
In order to encourage entrepreneurship among the young people of the new generation, it is made sure that Shishu Category Units are given greater attention before Kishore and Tarun categories.
The goods that MUDRA is offering are made with the general development and expansion of the micro-enterprise sector. The Shishu, Kishore, and Tarun are specifically tailored to fit the needs of various business sectors, business activities, and entrepreneur segments.
Two categories of financial help are provided by MUDRA:
1. Through MFIs, the Micro Credit Scheme (MCS) provides loans up to Rs. 1 lakh.
  • Joint Liability Groups
  • Self Help Groups
  • Individuals
2. Refinance Program for Commercial Banks, Small Finance Banks, Regional Rural Banks, and Non-Banking Financial Companies (NBFCs).
  • Commercial banks
  • Regional rural banks
  • NBFCs
  • Small finance banks
Mudra loans are given out for a number of reasons that lead to the development of jobs and revenue. The principal purposes of the loans are:
  • Business loans for vendors, traders, shopkeepers, and other service-related businesses.
  • Loans for transport vehicles solely for business purposes.
  • Loans for non-farm agribusinesses that generate revenue, such as pisciculture, beekeeping, poultry farming, etc.
  • Funding for Micro Units' Equipment.
  • Work capital credit is made possible with MUDRA Cards.
  • Tillers, two-wheelers, and tractors are only used for business.

Comments / reviews :

  1. Saket kumar from Maureen-hari-singhFriday 27th of October 2023 04:04:19 PM


    very good

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