The basic eligibility criteria for Mudra Loan are
- Indian citizens
- Non-farm income generating activities
- Non-corporate entities
- Funds to be invested for business activities
- Small business owners like truck operators, vegetable vendors, shopkeepers, fruit vendors, repair shops, artisans, paper/food processing units etc. are all eligible for Mudra Loans.
Eligibility Criteria for Pradhan Mantri Mudra Yojana (Mudra Loan)
The loans availed as per this scheme can be used for multiple purposes, like vehicle loans for automobiles meant for commercial purposes, business instalment loans that can aid in working capital financing / purchase of plant and machinery / renovating the infrastructure and/or business loans group and rural business credit.
A versatile loan as this has the following criteria to be met in order for the applicant to avail the loan
- The age of the applicant should be 23 years to 28 years at the time of the loan sanction and should not be more than 65 years at the time of the loan maturity
- The applicant should have monthly income above INR 17000 or INR 15 lakhs or more as annual turnover. The minimum profit after tax for non-individuals should be INR 1 lakh per year and for proprietorship/self-employed, it is INR 2 lakhs
- In case of salaried individuals, the minimum occupational stability should be 2 years and business stability should be at least 5 years, with 3 years’ service stability for doctors
- Applicants either have to have spent a year in the current residence or have a 1 year service relationship with the bank through which they are applying for the loan.
Can I get the Mudra loan amount on the basis of my Savings Bank account?
Yes, the loan amount may be requested on the basis of your SB account. The terms of the loan will be decided by the lending authority which includes amount of loan, interest rate and repayment tenure. The lending authority takes into account multiple factors before deciding the terms of the loan for each case.
