VCFO Lite
Mudra loan under PMMY: Shishu, Kishore, Tarun, Tarun Plus
What this means, checked by a CA
Mudra loans are collateral-free bank loans up to ₹20 lakh for small businesses, in four slabs. We pick the right slab, prepare the project report and documents, apply on JanSamarth or at your bank, and follow up until a decision.
₹2,999
One time, + 18% GST
- Delivered in 5 working days to prepare the file; bank decision is up to the lender (RBI norm 14 working days for MSE loans up to ₹25 lakh)
- Due: Any time; apply before the spend, since the loan funds new or expanding activity
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 10 items
Aadhaar, PAN or Voter ID
Identity proof, OTP on JanSamarth
Residence address proof
KYC for the borrower
Two recent photographs
Bank application form
Quotation or activity description
Shishu: shows what loan buys
Business registration or trade licenceOptional
Kishore and above
Last six months bank statementsOptional
Kishore and above: cash flow check
Project report or business planOptional
Kishore, Tarun, Tarun Plus appraisal
Udyam registrationOptional
MSE status for bank
Earlier Tarun loan closure proofOptional
Only route into Tarun Plus
Caste certificate, if applicableOptional
Priority benefits under bank schemes
DiscussionWhat we discuss · 6 items
How much do you need, and for what exactly (machine, stock, shop fit-out)?
Decides slab, term loan or working capital
Is the business a proprietorship, firm or a company?
PMMY targets non-corporate units; check lender
Have you had a Tarun loan before, and is it fully repaid?
Only way to Tarun Plus
Any overdue loan, card or guarantee in your name now?
Overdues and wilful default block approval
Which bank holds your current account and sales receipts?
Own bank usually processes faster
Can you bring your own margin (about 10% to 20%)?
Banks ask margin above Shishu
FormsForms we file · 7 items
Eligibility check: activity, constitution, credit report, existing overdues
Where: Internal. Due: Before applying
Pick the slab and facility (term loan, working capital or both)
Shishu up to ₹50,000; Kishore up to ₹5 lakh; Tarun up to ₹10 lakh; Tarun Plus up to ₹20 lakh
Where: Internal. Due: Before applying
Prepare project report with cost, means of finance and repayment schedule (Kishore and above)
Project cost minus own margin = loan; monthly cash surplus vs EMI (DSCR)
Where: Internal. Due: Before applying
Apply online under Business Activity Loans, or at the branch with the sample application form
Where: https://www.jansamarth.in. Due: Any time
Get the application number or stamped acknowledgement and track status
Where: https://www.jansamarth.in. Due: Same day
Answer branch queries; sign loan documents and hypothecation of assets bought
Where: Lender branch. Due: Within the time the branch gives
If no decision in 14 working days or rejected without reasons, escalate to the bank's grievance cell
Where: Lender grievance cell. Due: After 14 working days
DeliverablesWhat you get · 4 items
Application number and acknowledgement
When: Same day
Sanction letter with rate, tenure, margin
When: Bank timeline, RBI norm 14 working days
Disbursement to account or supplier
When: After documentation
Written rejection reasons, if declined
When: Within bank sanction norms
Questions people ask
Can I get ₹20 lakh as a first Mudra loan?
No. Tarun Plus (above ₹10 lakh up to ₹20 lakh) is only for those who took and repaid a Tarun loan.
Do I need collateral?
No. Mudra loans are collateral-free and covered by CGFMU guarantee. The bank takes hypothecation of assets bought with the loan.
Is there a processing fee?
It depends on the lender. SBI charges nil for Shishu and Kishore and 0.50% for Tarun.
How long can I repay?
Lender-specific. SBI: up to 5 years with up to 6 months moratorium below ₹5 lakh; up to 7 years with 12 months moratorium for ₹5 lakh to ₹10 lakh.
Where do I apply online?
JanSamarth, PSB Loans in 59 Minutes or Udyamimitra, or directly at any bank, RRB, small finance bank, NBFC or MFI that lends under PMMY.
Do I have to put my own money in?
SBI asks nil margin up to ₹50,000 and 20% above it; other banks differ (Karnataka Gramin Bank asks 15%).
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