MUDRA loan eligibility: Check required documents, different banks in India

MUDRA loan is a loan scheme for MSMEs under the PMMY scheme introduced by the Government of India. MSMEs can get loans ranging from ₹50000 to ₹10 lakh under the scheme. MUDRA loan eligibility depends on the main revenue generating activity of the business.

MUDRA loan eligibility

If you are trying to apply for the MUDRA loan you will need to satisfy all the eligibility criteria set up by the loan authority. Let us have a detailed look at all the eligibility for MUDRA loan scheme:

• Age of the applicant: The applicant must not be a minor. The age limit for MUDRA loan is from 18 to 65.
• Citizenship: The applicant must be an Indian citizen
• Credit requirement: Credit requirements should be ₹10 lakh and below
• Size of entities: The companies should be officially classified as MSME with valid MSME registration
• Loan defaults: The applicant must have no prior loan defaults
• CIBIL score: Generally, the MUDRA loan eligibility CIBIL score that a business should possess ranges from 650 – 700. However, banks don’t consider CIBIL score as a strict determinant of eligibility.
• Type of businesses: All non-corporate and non-farm enterprises including startups, wholesalers and retailers can apply for the loan. Here is a list of some of the business activities eligible for the MUDRA loan:
• Artisans
• Shopkeepers
• Fruit and vegetable vendors
• Engineering businesses
• Services companies
• Manufacturing businesses

Documents required for MUDRA loans

To apply for MUDRA loans these are the documents required:

• Udyam registration certificate
• Shop and establishment registration certificate
• Identity proof including Aadhar card and PAN card
• Income tax returns of the past six months
• Audited balance sheets and profit and loss accounts of the company

Also read: Is Udyam and MSME registration the same?

How to apply for a MUDRA loan?

Government of India invited financial institutions across the country to participate in MSME lending under the scheme. Many MFIs, NBFCs, public and private sector banks are a part of this loan scheme. Simply approach your nearest bank branch to check if they are extending the loan. You can contact them via phone as well.

Which banks are eligible for issuing MUDRA loan?

Under the PMMY scheme, various financial institutions have been authorised to extend loans to MSMEs. Products like SBI e-Mudra loan have become very popular among businesses that are SBI account holders.  Here is a list of banks that offer MUDRA loans for MSMEs: