How to Apply for Mudra Loan in Indian Bank? Documents Required, Eligibility, etc.

Mudra Loan is an initiative by the Government to provide financial needs in form of loans to the MSMEs and other small vendors.

In 2013 survey conducted by the Ministry of Statistics showed that only 4% of these businesses are financed by regular banks. Based on these stats, Narendra Modi Government launched a Mudra Loan Scheme in 2015 which covers all the MSMEs, street vendors, and other small shop owners.

Mudra Loan can be applied to various banks in India once such bank is the Indian bank that provides Mudra loan to any individual.

In this article, we will discuss how to apply for a mudra loan in the Indian bank? documents required, eligibility, etc.

Indian Bank Mudra Loans Interest Rates

The following are the interest rate offered by the Indian Bank-

Interest Rates	12.65% – 13.65%
Max Tenure	3 years

Eligibility for Mudra Loan

The following are the eligibility criteria for Mudra Loan-

• The applicant must be a citizen of India
• The amount offered under this scheme is Rs.10 Lakhs or less
• The minimum age for applying for Mudra loan is 18 years of age and maximum age is 65 years
• The applicant must have a valid business plan and spending and repayment strategy for the loan

Types of Loan

There are three types of loans provided under this scheme, each type has specific money caps, which are as follows-

• Shishu– Rs.50,000/- or less fund requirement
• Kishor– Rs.50,000/- to Rs.5 lakhs or less fund requirement
• Tarun– Rs.5 lakhs to Rs.10 Lakhs or less

How to apply for Mudra Loan in Indian Bank?

You can apply for a Mudra loan using both online and offline methods, which are as follows-

Online

• Visit the official website of Indian Bank and navigate to the loan products
• Now, click on the MSME option form the dropdown and click on the Pradhan Mantri Mudra Yojana link
• A small form will appear where you have to enter your contact details and your fund requirement details as well
• After filling the form, click on the apply button after ticking the checkboxes
• Your required for Mudra Loan application has been registered and the bank representative will contact you for further process your requirements
• After processing your document, your bank account will be credited with the loan amount

Offline

Visit the nearest Indian Bank branch and ask the bank representative for the loan requirement. The bank representative will ask you to fill a form and prepare the documents required for the loan.

The bank representative will review all your documents and your application request along with site verification (if any). If your mudra loan requirement has been successfully processed and your loan application has been passed then you will be notified about the same also, your bank account will be credited with the loan amount.  

Documents Required for Mudra Loan

The following are the documents required for Mudra Loan-

• Mudra Loan application form filled with passport-sized photographs attached
• Business Plan (Expansion Plan/ Start-up plan)
• Identity Proof-Aadhar card, Voter ID, Driving license, Passport
• Address proof (Water bills / Tax bills / Telephone bills / Electricity bills / Aadhar card / PAN card)
• Last 6 month’s Account statement
• Unaudited balance sheets
• Cancelled check of your bank account
• Income Tax Return (ITR) statement
• All papers that validate the name and address of the business establishment
• Business Registration and license (if any)
• If person belongs to SC/ST/OBC then associated documents presented
• Documents of all owners or business partners