Mudra Loan Scheme

Mudra Loan or Mudra Loan Scheme in Bank Of India, Eligibility, Document Required, Interest Rate & How to apply?: Government of India has launched Pradhan Mantri Mudra Yojana (PMMY) on 8th April 2015 with a concept of 'funding the unfunded' micro enterprises in the country. It is government's finance scheme to provide business loan to new or existing micro or small scales businesses from rural areas in India.

Mudra Loan Purpose Bank Of India

For setting up of new/ upgrading existing Micro business enterprises in the manufacturing, processing, trading and service sector and carrying out activities allied to agriculture, financing to weavers and artisans (income generating activity).

Mudra Loan Eligibility Bank Of India

Any individual including women, proprietary concern, partnership firm, private limited company or any other entity are eligible applicant under PMMY loans.

Mudra Loan Amount Bank Of India

1. Shishu: Loans up to Rs.50,000 provided to only startup businesses
2. Kishore: Loans above Rs.50,000 and up to Rs.5 lakh provided to only those businesses that have already started up but need financial aid for establishing
3. Tarun: Loans above 5 lakh and up to Rs.10 lakh provided to only those business that are already established but require funds for expansion

Credit Facility

Term Loan and/ or Working Capital up to maximum Rs.10 lakhs under 3 categories Shishu, Kishore & Tarun.

Mudra Loan Margin

Shishu: Nil & Kishore & Tarun: 15%

Mudra Loan Interest Rate Bank Of India

9.30% to 10.30%

Security for Mudra Loan

Primary Security: Hypothecation of all assets acquired out of bank finance & Personal guarantee of promoters/ directors
Collateral Security: NIL

Mudra Loan Tenure Bank Of India

Maximum - 36 months for Demand Loan and 84 months for term loan including moratorium. Interest to be serviced as and when charged.

Guarantee

No requirement of third party guarantee.

Mudra Loan Processing Charges

Banks may consider charging of upfront fee as per their internal guidelines. The upfront fee/ processing charges for Shishu loans are waived by most banks.

Please contact your nearest branch for getting more details.

Mudra Loan Documents Required Bank Of India

Mudra Loan Documents Required in Bank Of India are mentioned below infull detail.

CHECK LIST: (The check list is only indicative and not exhaustive and depending upon the local requirements at different places addition could be made as per necessity)

• Proof of Identity: Self certified copy of Voter's ID card / Driving License / PAN Card / Aadhar Card/Passport.
• Proof of Address: Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter's ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
• Proof of SC/ST/OBC/Minority.
• Proof of Identity/ Address of the Business Enterprise: Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
• Applicant should not be defaulter in any Bank/Financial institution.
• Statement of accounts (for the last six months), from the existing banker, if any.
• Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
• Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
• Sales achieved during the current financial year up to the date of submission of application.
• Project report (for the proposed project) containing details of technical & economic viability.
• Memorandum and articles of association of the company/Partnership Deed of Partners etc.
• In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.
• Photos (two copies) of Proprietor/ Partners/ Directors.

Others

All eligible activity would be covered under the guarantee cover of NCGTC under 'Credit Guarantee Fund for Micro Units'.
[No collateral security/third party guarantee to be obtained].