The Bharatiya Janata Party's (BJP) manifesto for Loksabha 2024 elections- Sankalp Patra promises to double the Mudra loan limit from Rs 10 lakh to Rs 20 lakh. The Sankalp Patra says BJP if elected to power will double the Mudra loan limit to Rs 20 lakh to those entrepreneurs who have already availed the loan and successfully repaid previous loans up to Rs 10 lakh under the Tarun category. The PM Mudra Yojana (PMMY) seeks to foster entrepreneurship and create livelihood opportunities across all sections, including OBC, SC, and ST communities. Since its inception, over 46 crore loans worth over Rs 27 lakh crore have been disbursed, highlighting how easy it is to avail of this loan to support your small businesses.
Shishu Loan: For loans sanctioned up to Rs 50,000 under this category, budding entrepreneurs in their early stages are offered support.
Kishore Loan: This category allows loans ranging from Rs 50,001 to Rs 5 lakh which is repayable in a maximum period of 60 months in EMIs.
Tarun Loan: All loans ranging from Rs 5 lakh to Rs 10 lakh repayable within a maximum of 84 months are offered in this category.
Under any of these categories, no collateral is required for loans up to Rs 10 lakh.
There are strictly laid out government guidelines, controlling interest rates. So rest assured you will get competitive interest rates in the loan market.
A MUDRA Card, a debit card will be issued against a MUDRA loan account, that allows you to withdraw working capital as and when required and repay the amount, making it possible to manage loan interest in a cost-efficient manner and loan burden to a minimum.
Applying for Mudra loans is easy, with borrowers having the option to apply online through the Udyamitra portal. Alternatively, mudra loans can also be availed of from nearby branch offices of a bank, NBFC, MFIs etc.
Necessary documents include Proof of identity, Proof of Residence, Proof of caste and minority status. Copies of relevant licenses or registration certificates pertaining to the ownership, identity and address of the business unit, and statement of accounts (for the last six months), from the existing banker, if any are needed. Further photos (two copies) of the proprietor or partners must be enclosed within.
For amounts of loan applications worth Rs 2 lakh and above, balance sheets of the last two years of the units along with income tax or sales tax return etc are also necessary. The projected balance sheets for the period of the loan in case of a term loan should also be provided in such cases.
To prove the financial soundness of the applicant, sales achieved during the current financial year up to the date of submission of the application wherever applicable has to be demonstrated. Applicant must not be a defaulter in any bank or financial institution.
Visit the PM MUDRA official website and select the Udyamimitra portal. Click on "Apply Now" from the portal. Choose from the appropriate loan category such as New Entrepreneur Existing Entrepreneur, or Self-Employed professional.
Use OTP for registration and then provide personal and professional details.
Then the applicant has to fill in business information, such as activity type and industry like Manufacturing, Service, Trading or activities allied to agriculture.
Attach all required documents, such as ID proof, address proof, applicant photo, partners' photo and many documents mentioned above. Submit the application.
