e-Mudra Loan
e-Mudra Loan is a digital version of the Mudra Loan Scheme launched by the Government of India to support and promote entrepreneurship in India. Through e-Mudra Scheme, entrepreneurs can apply online for a Mudra loan instead of visiting the banks or financial institutions in person. This initiative combines the power of technology and financial inclusion and makes it easier for small and micro-businesses to access credit and fuel their growth.
What is e-Mudra Loan?
e-Mudra Loan is a digital lending facility introduced by the Government of India under the Mudra Yojana. The Mudra Yojana, launched in 2015, aims to provide financial assistance to small and micro-businesses, including non-farm income-generating activities in the manufacturing, trading, and services sectors. e-Mudra Loan specifically focuses on providing loans to small entrepreneurs who need capital to start a new business or expand an existing business.
Key Features of e-Mudra Loan
Digital Platform: PM e-Mudra Loan operates through an online portal, making it easily accessible to aspiring entrepreneurs across India. This digital platform eliminates the need for extensive paperwork and simplifies the loan application process.
Three Categories: e-Mudra Loan is categorised into three distinct schemes based on the nature and stage of the business. These categories are Shishu, Kishore, and Tarun, representing loans for small, medium, and large-scale enterprises, respectively.
- Shishu: This category covers businesses in the early stages and offers loans up to INR 50,000 to kick-start their ventures.
- Kishore: The Kishore scheme provides loans ranging from INR 50,001 to INR 5 lakh for business expansions and the purchase of new assets.
- Tarun: The Tarun category supports established businesses that require larger amounts of capital. Loans ranging from INR 5 lakh to INR 10 lakh can be availed under this scheme.
Collateral-free: Entrepreneurs can avail e-Mudra loans without providing any security or guarantee. This reduces the burden and risk of borrowing, especially for small businesses.
Interest Rates: The interest rates for e-Mudra loans are typically lower compared to traditional banking systems. However, the interest rate differs for each lender but will be within the range defined by the RBI.
Repayment Tenure: The repayment tenure for the e-Mudra Loan varies based on the loan amount and the category. It can range from 3-5 years, providing flexibility to borrowers to repay the loan based on their business cash flows.
Who Can Apply for e-Mudra Loan?
- Must be 18 years+
- Must be an Indian citizen.
- Minimum SSC passed.
- Both new can existing businesses – Must have a business plan in manufacturing, processing, trading or service sector for setting up a new business or to upgrade an existing micro business.
- The business plan must generate income and employment.
- Must require a loan of less than Rs.10 lakh.
- Women Entrepreneurs and people belonging to SC/ST categories have special subsidies.
How to Apply for e-Mudra Loan
- Option 1 – You can apply for an e-Mudra Loan through UdyamiMitra’s official portal.
- Option 2 – Visit any bank’s website offering the Mudra Loan and apply online. Verify e-KYC by submitting your Aadhaar number. Once all the formalities are completed, you will receive an SMS to initiate further processes like account opening and to find your disbursement information by revisiting the e-Mudra portal.
Documents Required to Apply for e-Mudra Loan
- Savings/Current Account number and branch details.
- Proof of Business (Name, Start date & Address)
- Aadhar Number
- Community details (General/SC/ST/ OBC/ Minority)
- GSTN & UDYOG Aadhar
- Proof of Shop & Establishment or any other Business Registration document (if available).
- Existing loan details
- PAN Number
FAQs on e-Mudra Loan
e-Mudra Loan is a digital lending facility introduced under the Mudra Yojana in India. The scheme’s objective is to provide financial assistance to small and micro-businesses, enabling them to access credit for their business ventures. No, e-Mudra Loan is collateral-free. Entrepreneurs can avail loans without the need to provide any security or guarantee. The interest rates for e-Mudra loans are competitive and typically lower compared to traditional banking systems. Yes, the e-Mudra Loan scheme encourages women's entrepreneurship and provides equal opportunities to access credit for their business ventures. e-Mudra Loan supports various types of small and micro-businesses in the manufacturing, trading, and services sectors. No, e-Mudra Loan is available for entrepreneurs across India, both in rural and urban areas. Upon receiving the receipt of the SMS of loan sanction, the process would take 30 days. What is the e-Mudra Loan?
Is collateral required for e-Mudra Loan?
What is the interest rate for e-Mudra Loan?
Can women entrepreneurs apply for e-Mudra Loan?
Can I use e-Mudra Loan for any type of business?
Is the e-Mudra Loan available only for rural areas?
How many days would it take to sanction an e-Mudra loan?