Mudra Loan Eligibility
Mudra loan aims to provide financial support to micro small medium enterprises (MSMEs) sector and empower them. Unlike business loans, mudra loans do not ask for collateral or security to get loans as it’s an unsecured loan.
The loans under Pradhan Mantri mudra yojana scheme can be availed by individual, SMEs, MSMEs, business owner, first-time entrepreneurs and other business entities.
However, under PMMY the borrowers have been categorized into three different categories: the starters, the mid-level finance seeker and the advance level growth seekers. These categories are named Shishu, Kishor and Tarun.
Shishu Loan: Under Shishu loan, new entrepreneurs who are looking for startup their business can avail a loan up to Rs.50 thousand.
Kishor Loan: Borrowers with a Rs.50 thousand to Rs.5 lakh requirement can be fulfilled under Kishor loan. Those who have already started their business or have been running their business for some time require funds for further expansion.
Tarun Loan: Cater to business owners requiring funds up to Rs.10 lakh are most likely suitable for those who want to carry out a major expansion in their business.
Mudra Loan Eligibility Criteria
The mudra loan as already stated above is meant for small business owners. The following are the requirements that need to be met by borrowers:
- The loan amount obtained cannot be used for educational purposes nor purchasing a property or anything else apart from investing in business.
- However, you can get a mudra loan to purchase a vehicle to be used in your business.
- Businesses with high turnover are not eligible for the mudra loan scheme.