Mudra Loan Scheme

Mudra Loan or Mudra Loan Scheme in Tamilnad Mercantile 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 Tamilnad Mercantile Bank

To meet working capital / Capex requirements of Micro (Manufacturing / Service) Enterprises.

Mudra Loan Eligibility Tamilnad Mercantile Bank

Individual / Proprietorship / Partnership Firm of both Micro manufacturing / service enterprises in rural, semi-urban and urban areas.

Mudra Loan Amount Tamilnad Mercantile Bank

Maximum loan amount Rs. 10 Lakhs
To signify the stage of growth / development, the loan product is named as:
a) Shishu - Covering loans up to Rs. 50,000.00
b) Kishore - Covering loans above Rs. 50,000.00 and up to Rs. 5 Lakhs
c) Tarun - Covering loans above Rs. 5 Lakhs and up to Rs. 10 Lakhs

Credit Facility

i. Term loan (for capex requirements)
ii. For Working Capital purpose:
a) Overdraft (Running / operative account) - renewable every year
b) Overdraft (Reducing balance method) - to be reviewed annually
iii. The General Credit Card loans can also be considered under the scheme

Mudra Loan Margin

Margin will be taken is based on the policy framework of the bank, depending upon overall guidelines of RBI in this regard. Banks may not insist for margin for Shishu loans.

Further, margin depends upon activity of finance. Please contact your nearest bank branch for more details.

Mudra Loan Interest Rate Tamilnad Mercantile Bank

14.4% to 16.4%

Security for Mudra Loan

• Working Capital Limits - Stocks and receivables.
• Term loans - Assets required / created out of our Bank loan.

Mudra Loan Tenure Tamilnad Mercantile Bank

1. Term Loan / Overdraft (Reducing balance method) shall be fixed on the basis of income generation of the borrower (individual / concern / firm) and the repayment period shall be restricted to the maximum of 84 monthly instalments (inclusive of Instalment holiday if any of a maximum of 6 months).
2. Where Overdraft limit (Reducing Balance Method) is permitted for working capital requirement, the annual reduction schedule should normally be evenly distributed over the total repayment, depending on the repayment capacity of the borrower.
3. Overdraft Limit: One year (To be renewed once in a year well before the due date).

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 Tamilnad Mercantile Bank

Mudra Loan Documents Required in Tamilnad Mercantile 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.

Others

Form of Disbursement

In case of Term Loan, the payment should be made directly to the supplier of the asset financed by the bank or to the provider of services.

Account credit by way of reimbursement of loan (maximum not exceeding 30% of the loan amount) against assets already acquired may be approved by the sanctioning authority, in case of term loans, where the assets are already acquired from alternative resources including own funds not earlier than one year from the date of disbursement of the loan. In such cases, end use vouchers / receipts / self declarations given by the borrower, should be obtained and certified by branch heads confirming verification and availability of such assets.

20% of the Working Capital limit sanctioned to Micro Enterprises with a maximum credit of Rs. 10,000.00 will be the eligible components of MUDRA card. The mechanism of issuance of MUDRA card will be circulated shortly.