What is MUDRA Yojana ?

MUDRA loans are offered by many financial institutions like the commercial banks, cooperative banks, small financial banks, non-banking financial companies, microfinance institutions, and Regional Rural Banks and so on. MUDRA loans are offered under Pradhan Mantri MUDRA Yojana (PMMY), a scheme that was launched in an effort to support micro, small and medium businesses. Though broadly similar, but the requirements of MUDRA loan documents slightly vary based on the type of loans, type of business and the category of MUDRA loans.

Documents Required for MUDRA Loan

The general documents required for MUDRA loans along with the application form are:

• Identity Proof
• Proof of Residence
• 2 Recent passport-size photos of the loan applicant
• Identity proof and address proof of the business establishment
• Rental agreement if business establishment is in a rented facility/premise
• Clearance certificate from pollution control board, in case applicable
• Small Scale Industry (SSI) registration from Ministry of Micro, Small and Medium Enterprises is required for certain businesses
• For the loan amount above 2 lakhs, audited balance sheets of the units for the most recent three years is required along with the returns of income tax or sales tax
• For all loan amounts above 2 lakhs, the projected balance sheets for the next 2 years for working capital limits and projected loan period for term loans to be furnished
• For a company, need the memorandum as well as the Articles of Association
• For a partnership business, partnership deed is required
• Guarantors and Promoters need to furnish assets and liabilities statements as well as the latest income tax return
• For the properties offered as ‘Primary’, the copies of Title deeds or lease deeds has to be furnished