Mudra loan interest rate, Banks, eligibility, Approval time

Various question and answers about mudra loan

FAQs on Mudra Loan provided by the government

Q. How much time does it take for Mudra Finance to get approved?

Ans. Generally, it takes around 7-10 working days for a loan approval by banks in case of Mudra Yojana under PMMY.

Q. Do I need to submit any security/collateral with the bank to avail loan under Pradhan Mantri Mudra Yojana?

Ans. No, Collateral or security is not required by banks or any financial institution under Mudra Finance.

Q. Is ITR compulsory for Mudra Finance?

Ans. For existing businesses and salaried people, last years’ ITR is necessary to be presented to apply for business loans under Mudra Yojana.

Q. How can I check my Mudra loan status?

Ans. You can check your mudra loan status online by visiting the respective bank’s website and checking via its e-mudra loan application status section.

Q. Which banks offer PM Mudra Loan?

Ans. Private and public sector banks, Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), Non-Banking Financial Companies (NBFCs), Regional Rural Banks (RRBs) and Commercial banks in both private and public sectors offers Pradhan Mantri Mudra Loans, as per sole permission and directions from the RBI.

Q. Can people from metropolitan cities apply for Mudra Loan Scheme?

Ans. Absolutely! All sole proprietors and the owners of Micro, Small and Medium Enterprises (MSMEs) engaged in non-agricultural services and activities across the country, including metro, urban, semi-urban and rural areas can apply for Mudra loans.

Q. Is there any special Mudra loan scheme for women?

Ans. Yes, United Mahila Udhyami Yojana is a part of the Mudra loan scheme exclusively for women entrepreneurs. Under this, women engaged in production, manufacturing or service-related economic activities can apply for a loan. This scheme is specially formulated to empower women entrepreneurs and encourage them further. Women with more than 50% financial holdings in a company can also apply for a Mudra loan under this category.

Q. What are the key features of the Pradhan Mantri Loan Yojana for women?

Ans. The key features of Mudra loan for female entrepreneurs are as follows:

  • Mudra Yojana is categorised into 3 loan schemes, named as Shishu, Kishor and Tarun
  • Concessional interest rates
  • Maximum loan amount up to Rs. 10 lakh
  • Collateral/Security Free Loans
  • Repayment Tenure is from 12 months and up to 5 years
  • Nil processing fees with zero foreclosure charges

Q. Can I get Mudra loan for new business? 

Ans. Definitely! Banks offers Mudra loans to start-ups engaged in the manufacturing, trading, services and other non-agricultural sectors. Startups can avail Mudra loan at competitive interest rates with flexible repayment options. Numerous budding entrepreneurs have already availed Mudra loans to start their own business.

Q. Can we get Mudra Loans for business expansion?

Ans. Yes, you can avail assistance under the “Shishu” or “Kishor” category of Micro Credit Scheme of MUDRA to expand your business. Contact your nearest Bank and Micro Finance Institution (MFI) to know the application procedure.

Q. I have graduated recently. I want to start my own business. Can MUDRA help me?

Ans. If your age is above 18 years then you can apply for the Shishu category under Mudra loan wherein you can avail loan amount up to Rs. 50,000.