Step-by-Step Guide to Applying for Mudra Loan Scheme For Women

Now, women are leading in all sectors and achieving financial independence, turning their ideas into reality through entrepreneurship. So, the Government launched the Mudra Loan Scheme for women entrepreneurs in order to empower & financially assist them. Whether, it’s a bakery, a boutique, a beauty parlor, or a food truck, the Mudra Loan is designed to provide financial assistance to small and micro-businesses.

In this blog let’s talk about the Pradhan Mantri MUDRA Yojana,

What is the Mudra Loan Scheme?

The Pradhan Mantri Mudra Yojana (PMMY) offers financial support to small and micro-businesses. It focuses on non-corporate & non-farming businesses and empowers women entrepreneurs by offering loans with minimal paperwork and without requiring collateral. The loan amount can go up to Rs. 10 lakh, categorized under three types:

What are the types of Mudra Loan?

1. Shishu: Covering loans upto up to ₹50,000
2. Kishor: Covering loans from ₹50,001 to  ₹5 lakh
3. Tarun: Covering loans from ₹5,00,001 and ₹10 lakh

What are the Features of Mudra Loan?

1. Collateral-Free Loans: No collateral or security is required.
2. Minimum & Maximum Loan Amount: You can get a minimum loan of ₹50,000 to a maximum loan of up to ₹10 Lakh.
3. Lower Interest Rates: Interest rates are competitive and depend on the lending institution (which provides loan).
4. Focus on Women Entrepreneurs: Special support is provided to women to empower entrepreneurship.
5. Wide Coverage: Available through banks, NBFCs, and regional rural banks.
6. Repayment Tenure: Borrowers can repay the loan for up to 7 years.

What is the eligibility of the Mudra Loan Scheme?

Individuals, Partnership firms, Proprietary concerns, Private Ltd. Companies, Public Companies, and other legal forms.

Following are important points for being eligible under this scheme:

• Applicants must not be defaulters and should have a satisfactory credit track record.
• Borrowers should possess the required skills, experience, or knowledge for the proposed activity/business.
• The need for educational qualification, if any, is assessed based on the nature of the proposed activity and its requirement..

How to apply for the Mudra loan scheme online?

The following are the documents for the enrolment process:

• ID Proof
• Address Proof
• Passport-size Photograph
• Applicant Signature
• Proof of Identity/Address of Business Enterprises

Steps for Applying for a Mudra Loan:

1: Go to the PM MUDRA official website and select the Udyamimitra portal. And click on Mudra loan “Apply Now.”

2: Select one of the following: New Entrepreneur, Existing Entrepreneur, or Self-employed Professional.

3: Fill in the applicant’s name, mobile number & email ID, then generate an OTP. After successful registration:

4: Fill in personal and professional details. Select hand-holding agencies if assistance is needed for project proposals, or click “Loan Application Center” to proceed directly.

5: Select the category of loan required: Mudra Shishu, Mudra Kishore, or Mudra Tarun.

6: Provide business-related information, including business name, business activity, and industry type (Manufacturing, Trading, Service, or allied agricultural activities).

7: Fill in additional details like owner information, your current loans/credit, new loans/credit you’re planning to take, future financial needs, and the banks or lenders you’d like to work with.

8: Attach required documents: ID proof, passport-size photograph,  address proof, applicant signature, proof of identity/address of business enterprise, etc.

9: Submit the application. Then, an application number will be generated for future reference.

Why is the Mudra Loan Scheme Important for Women?

The Mudra Loan Scheme is a game-changer for women entrepreneurs. This gives them an opportunity to build their business, creating an earning source for women. With no collateral and easy repayment terms, women can focus on growing their businesses without financial stress.

Starting your business is no longer a dream. With this scheme, you can apply for a loan and start your own business. Whether you’re planning a small start-up or expanding an existing one, this scheme can provide the financial boost you need.

If you wish to start your own business and create your own fund without applying for any loan then you can build your fund by investing and you can start your own business. You can check out the Lxme app and look out for various goal and time-based portfolios that are diversified, well-researched, and curated by experts.

FAQs

Further Read,

• Ladli Behna Yojana and How to Apply for It?
• How to Apply For Ayushman Bharat Health Coverage?
• How to apply for Manodhairya Scheme Online?