How to get MUDRA LOAN

1. Micro Units Development and Refinance
Agency Ltd

2.  Registered Office SIDBI, ground floor, Videocon Tower, Jhandewalan
Extension,E-1, Rani Jhansi Road, New Delhi – 110055
 Corporate Office: MSME Development Centre,C-11, g-block, Bandra
Kurla Complex,Bandra East, Mumbai – 400 051
 Shri Mohammad Mustafa, IAS, assumed charge as Chairman &
Managing Director of Small Industries Development Bank of India and
as Chairman of MUDRA Ltd. w.e.f. August 28, 2017.
 Its controlled and supervised by Ministry of finance.
 Mudra bank introduced in April 8th 2015

3.  MUDRA Bank is not a bank (like SBI etc).
 It is a government financing scheme to provide
business loan to New and Existing small businesses in
India.
 MUDRA will be operating as a refinancing institution
through State / Regional level intermediaries.

4.  To lay down policy guidelines to finance micro/small
enterprises
 To get all Micro Finance Institutions and entities
registered and regulate the same.
 To assist lower income groups in setting up and
developing their business.
 To help existing small businesses grow and develop
their enterprise further.

6.  Shishu : covering loans upto 50,000/-(10%-
12%).It is available for start ups.
 Kishor : covering loans above 50,000/- and upto
5 lakhs(14%-17%).It is available for existing
business to develop and modernize.
 Tarun : covering loans above 5 lakhs and upto 10
lakhs(16% min – max based upon the bank). Its
available further development.

7.  60% of the loans under this scheme are set
to be offered through the ‘Shishu’ option
and the rest 40% will be through the
‘Kishore’ and ‘Tarun’ schemes.
Target disbursed amount
 2015-16 1.2 lakh crore (target reached)
 2016-17 1.8 lakhs crore
 2017-18 2.4 Lakhs crore
 2018-19 3.0 Lakhs crore

8.  Indian citizens
 Non-farm income generating activities
 Non-corporate entities
 Funds to be invested for business activities
 Applicant should not be defaulter of any Bank /
Financial Institution
 Small business owners like truck operators, vegetable
vendors, shopkeepers, fruit vendors, repair shops,
artisans, paper/food processing units etc. are all eligible
for Mudra Loans.

9. There are list of business for which Mudra loan
cannot be taken :
 Personal Requirement (Marriage, construction of
house etc)
 Educational Purpose
 Buying Personal Car or Bike
 Rich Businessmen(Mr.Vijay malya,
Mr.Palanisamy ect)

10.  27 Public Sector Banks
 17 Private Sector Banks
 31 Regional Rural Banks,
 4 Co-operative banks
 36 Microfinance Institutions
 25 Non-Banking Financial Institutions
The above banks currently been selected to allow
disbursement of this loan.

11. Documents Listed Below :
 Self attested proof of identity.
 2 passport size photographs of applicant’s.
 Quotation of items and machinery to be purchased.
 Details of suppliers and machineries as well as other
items to be purchased.
• Proof of category life SC/ST and others if any.
 Standardized Project proposal
 Identity of ownership of business and business address along with
copies of necessary licenses and certificates in case of existing
company.

12.  No processing fee (1% on loan amount in personal
loan)
 No collateral
 Repayment period of loan is extended up to 5 years
(Government planned to extend this tenure to 7 years)
 Pre-closure charge Rs.5000/-(3% on prepayment
amount in case of personal loan)

14.  MUDRA Card is a debit card which provides working capital facility as a cash credit
arrangement.
 MUDRA Card available to those person getting loan 1lakh and above.
 They can overdraft upto Rs.20000 /-
 The borrower can make use of MUDRA Card in multiple withdrawal and credit.
 MUDRA Card can be operated across the country for withdrawal of cash from any ATM /
micro ATM and also make payment through any ‘Point of Sale’ machines.
 Maximum limit of cash withdrawn is Rs.25,000 per day in ATM and POS

15.  Land Transport Sector / Activity
 Community, Social & Personal Service Activities
 Food Products Sector
 Textile Products Sector / Activity

16.  Shopkeepers
 Fruits and vegetable vendors
 Non-Corporate Small Business Segment (NCSBS) running as small
manufacturing units that comprise millions of proprietorship or
partnership firms
 Service sector units such as beauty parlors, boutiques, courier agents,
cycle and motorcycle repair shop, dry cleaning shops, DTP and
Photocopying Facilities, gymnasiums, pharmacies, saloons, tailoring
units, etc.
 Truck operators.
 Loans can be availed for purchase of transport vehicles for goods and
personal transport such as passenger cars, auto rickshaw, e-rickshaws,
taxis, small goods transport vehicle, 3 wheelers, etc.
 Artisans

17.  Food-service units
 Food processing units such as agricultural produce preservation at
rural level, small service food stalls, biscuit, bread and bun making,
canteen services, day-to-day catering, cold storages and cold chain
vehicles, jams/jellies making, papad and pickle making, sweet shops,
ice and ice cream making units.
 Repair shops or mechanic sheds
 Small industries such as poultry, cotton spinning, traditional
embroidery and hand work, handloom, knitting, apparel design,
computerized embroidery, traditional dyeing and printing, power
looms, textile non garment products such as bags, vehicle accessories,
furnishing accessories, zari and zardozi work, stitching and others.

18.  MUDRA Bank offers financial support to empower existing small
businesses and first-time entrepreneurs.
 Banking services are now available to people in the remote areas.
 The MUDRA Bank system offers maximum benefits at minimum risk
for all micro businesses.
 A person taking loan from MUDRA Yojana also gets a credit
guarantee.
 The Experts appointed by the MUDRA committee assist the borrower
in organizing and processing a business.
 A regular evaluation of small business units, helpful to entrepreneurs
to know its performance and take corrective action.
 It offers 70% of loan(preference) to women entrepreneur and 0.25%
interest rate subsidy.

19. Mudra loan Micro Credit
 Refinance
 Narrow area coverage
 Max 10 lakhs
 No subsidies
 Micro units and small
scale units
 No Refinance
 Wide area coverage
 Max - No limit
 Availability of subsidies
 MSME’s

20. Mudra loan

21.  5.77 crore (57.6 million) small business have been
identified as target clients using the NSSO survey of 2013.
 Now 12 crore small business unit benefited from MUDRA
loan among 3.5 crores are first generation entrepreneurs
 It creates 1.5 crore empolyment opportunity in india.
 MSMEs contribute around 6.11% of the manufacturing
GDP and 24.63% of the GDP from service activities as well
as 33.4% of India's manufacturing output.
 It’s going on successful, but NPA rate in 2017-18 5.4% and
expected 7% for 2018-19. It creates problem in future.
 This facility is a opportunity to young entrepreneurs like
you. Use it and flourish in your life.