Mudra Loan Scheme

Mudra Loan or Mudra Loan Scheme in Canara Bank, 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 Canara Bank

To meet business related Term Loan and Working Capital requirements.

Mudra Loan Eligibility Canara Bank

Non-Corporate Small Business Segment (NCSBS) comprising of Individuals /proprietorship / partnership firms running as small manufacturing units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas, whose financing needs are less than 10 lakhs subject to satisfying Micro, Small and Medium Enterprises (MSME) (Manufacturing/Service) definition.

Mudra Loan Amount Canara Bank

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 Working Capital Loan facilities.

Mudra Loan Margin

15% to 25%

Mudra Loan Interest Rate Canara Bank

13.65%

Security for Mudra Loan

• Primary Security:
  1. Assets created out of the Bank's finance.
  2. Personal guarantee of promoters/directors.
• Collateral Security: No collateral security.

Mudra Loan Tenure Canara Bank

Maximum of Seven years

Guarantee

No requirement of third party guarantee.

Mudra Loan Processing Charges

Eligible accounts to be covered under Credit Guarantee Fund Scheme for Micro and Small Enterprises(CGTMSE).

Mudra Loan Documents Required Canara Bank

Mudra Loan Documents Required in Canara Bank 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.