Mudra Loan is a Government Scheme introduces in 2015 to provide loans to non-corporates small businessmen, especially from the informal sector.
The interest rates are very nominal in this scheme also, this loan is provided easily without a lot of documentation or guarantees.
You can apply for the Mudra Loans in any of the public sector banks and some private banks in India. Canara Bank is one such bank where you can apply for the Mudra Loan.
In this article, we will discuss how to apply for Mudra Loan in Canara Bank? documents required, the application process, etc.
Table of Contents
Types of Mudra Loan
The following are the types of mudra loan-
| Mudra Loan Scheme | Amount |
| Shishu | Up to Rs. 50,000 |
| Kishore | Between Rs. 50,000 & Rs. 5.00 Lakh |
| Tarun | Between Rs. 5.00 Lakh & 10.00 Lakh |
Eligibility for Mudra Loan
The following are the eligibility for Mudra Loan
| Minimum age of eligibility | 18 years |
| Maximum age of eligibility | 65 years |
| Who can avail a Mudra Loan | Loans can be availed by new and existing units |
| Security or collateral | No collateral or third-party security is required |
| Interest Rate | Within 5-12.5% Interest Rate |
How to Apply for Mudra Loan in Canara Bank?
The following are the step by step instructions on how to apply for Mudra Loan in Canara Bank-
- Visit the official website of Canara Bank Mudra Loan by clicking on this link- https://canarabank.net.in/MudraLoan/
- Now, a portal will open where you’ll be asked a question on you’ve existing account or not
- Choose option appropriately and provide your account number followed by clicking on the proceed button
- Now, an OTP will be sent on your Registered mobile number which you’ll have to enter in the given field
- Click on PMMY- Shishu Mudra Loan followed by selecting the loan amount and tenure followed by accepting the terms and conditions
- Now, a page will appear where a detailed eligibility for the loan is listed, read it and click on the apply button
- After clicking on the apply button, you’ll be redirected to a new partially filled form which is auto populated using your Aadhaar number and PAN Card
- You’ll have to provide your Udyam Registration Number, Constitution where your business is and other kYC documents (if any) followed by clicking on the proceed button
- Now, an OTP will be sent on your registered mobile number of Aadhaar and Udyam Registration. You’ll have to provide both the OTP in the relevant fields
- Now, preview your application form which is auto-populated using your documents you’ve provided
- In the next step, you’ll have to provide details like investment in Plant & Machinery /Equipment, Turnover, additional contact numbers, etc.
- Now, eligible loan amount and EMI for tenure of 12, 24, and 36 months will appear on the screen which you’ll have to choose accordingly as per your comfort followed by selecting your preferred branch and click on the confirm and proceed button
- After clicking on the confirm button, a summary of your application form will appear. You’ll have to click on the confirm and proceed button
- Your application for loan has been submitted and your application form will be reviewed by the bank and you’ll be notified about the loan by the bank branch
Documents Required for Mudra Loan in Canara Bank
The following are the documents required for a mudra loan in Canara Bank-
- Duly filled application form with passport-sized photographs
- KYC documents of the Applicant: Voter’s ID card, Passport, Driver license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
- Bank Statement of last 12 months
- Company establishment certificate
- Udayam Certification Number
- Proof of belonging to SC/ST, OBC, or any minority group, if applicable
- Any other document required by the bank
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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