InvestorQ : What is the Kishor Pradhan Mantri MUDRA Yojana loan?
Priyanka Singh made post

What is the Kishor Pradhan Mantri MUDRA Yojana loan?

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seema Upadhyaya answered.
1 year ago

MUDRA, acronym for Micro Units Development & Refinance Agency Ltd (MUDRA), is a Government of India-created institution that provides refinancing and several development functions to micro unit enterprises.

MUDRA primarily provides funds to non-corporate and non-farm sector income generating activities of micro and small enterprises whose credit needs are below Rs 10 lakh. All bank branches will provide loans to micro units, sans any collateral.

Based on which stage of growth and funding requirement the micro unit is in, MUDRA has created three schemes that provide loans:

1. Shishu: covering loans up to Rs 50,000

2. Kishore: covering loans above Rs 50,000 and up to Rs 5,00,000

3. Tarun: covering loans above Rs 5,00,000 and up to Rs 10,00,000

Kishor (or Kishore) MUDRA Yojana loans offer micro units up to Rs 5 lakh to those businesspersons who are looking for additional funds to expand their operations.

Checklist to be provided for availing the Kishore MUDRA Yojana loan: • Previous six months’ account statements from an existing banker, if any • Balance sheet for last two years • Income/sales tax returns • Estimated balance sheet for one year or for the duration of the loan • Memorandum and articles of association, if any • Sales made before filing the loan application and in the current FY.

Please note, in addition to the above, borrowers also have to provide a report containing the economic and technical viability of the business.

Furthermore, borrowers also have to provide:

• Certificate of belonging to SC, ST, OBC, etc. • Address proof • Identity proof