Within the yr 2015, the Indian authorities launched the Pradhan Mantri Mudra Yojana (PMMY) in a bid to supply loans and different credit score amenities to micro enterprises within the nation. In actual fact the time period Mudra itself stands for Micro Models Growth & Refinance Company, which is an RBI-registered NBFC. Earlier than we get into the specifics of what a Mudra card is, let’s rapidly check out the Mudra mortgage scheme.

What’s the Pradhan Mantri Mudra Yojana (PMMY)?

The PMMY affords micro enterprises a approach to receive loans and credit score amenities for operating their operations easily by the Mudra mortgage scheme. Micro enterprises which are in want of financing can avail loans from accomplice Mudra financial institution and NBFCs.

In line with this scheme, a micro enterprise can avail any one of many three totally different loans – Shishu, Kishore, Tarun. With the Shishu mortgage, a micro unit can avail loans of as much as Rs. 50,000. Kishore mortgage, in the meantime, affords credit score amenities starting from Rs. 50,000 to Rs. 5 Lakhs. And eventually, with the Tarun mortgage, a micro unit can get anyplace from Rs. 5 Lakhs to Rs. 10 Lakhs as a mortgage.

What’s the Mudra card?

Because the title itself signifies, the Mudra card is actually a debit card {that a} micro enterprise proprietor can use to make withdrawals as and once they’re in want of funds. The debit card is linked to their respective Mudra mortgage account. As an illustration, with a Mudra card that’s linked to a Shishu mortgage account, the micro enterprise can withdraw funds as and once they want as much as Rs. 50,000.

One of many major benefits of getting a Mudra card is that it permits the borrower to successfully and effectively make the most of their mortgage. It additionally minimizes the curiosity prices and promotes digital transactions. One other main benefit is that the Mudra card additionally serves to create a credit score historical past, making it simpler for the borrower to avail additional loans sooner or later.

Because the Mudra card is actually a debit card, it may be used to withdraw funds from any ATM and make funds by any ‘Level of Sale (POS)’ machine all through India.

What are the Paperwork Required to Avail a Mortgage from a Mudra Financial institution?

All that you’ll want to do is submit the next Mudra mortgage paperwork with the accomplice financial institution to avail a mortgage beneath the Mudra scheme.

  1. A duly crammed software type. The applying type should be in accordance with the kind of mortgage being availed.
  2. Identification proof – Aadhaar, PAN, passport, voter ID, or driving license
  3. Tackle proof – Aadhaar, passport, voter ID, driving license, or utility payments
  4. Passport-size pictures of the person making use of for the mortgage – 2
  5. Earnings proof – Financial institution assertion for the earlier 6 months, Earnings Tax Returns, or audited monetary statements for the earlier 3 years
  6. Proof of enterprise existence – Registration certificates, enterprise license, or memorandum and articles of affiliation


The Mudra mortgage scheme has helped remodel micro enterprises by giving them unfettered entry to financing. You possibly can double examine the listing of Mudra banks and Mudra mortgage paperwork above to make sure a clean course of.

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