The Pradhan Mantri MUDRA Yojana is a significant initiative by the Government of India designed to provide financial support to entrepreneurs. This scheme offers an alternative to taking loans from private lenders, where recovery can be a source of pressure and social embarrassment. When the government provides a loan facility, it can even be waived in certain circumstances. The scheme allows you to get a loan of up to ₹10 lakh, and in some cases, even up to ₹20 lakh.
This guide will walk you through the step-by-step process of applying for a loan under the Pradhan Mantri MUDRA Yojana.
Introducing the Jan Samarth Portal
The entire application process is managed through the Jan Samarth portal, which acts as a “One Nation, One Loan Portal.” Similar to other unified national platforms like “One Nation, One Ration Card,” this portal consolidates various loan schemes in one place. You can apply for any type of loan through this single platform.
To begin your application, you first need to navigate to the official portal:
- Open Google on your phone or laptop.
- Type “Jan Samarth” in the search bar.
- Click on the first official link that appears for the Jan Samarth portal.
Once on the portal, you will see options for various loan types. For the MUDRA loan, navigate to the Business Activity Loan section and select the Pradhan Mantri MUDRA Yojana option.
Understanding the MUDRA Loan Tiers
The Pradhan Mantri MUDRA Yojana has recently expanded its loan limits. The loans are categorized into different tiers based on the amount:
- Shishu: Loans up to ₹50,000.
- Kishor: Loans from ₹50,001 to ₹5 lakh.
- Tarun: Loans from ₹5,00,001 to ₹10 lakh.
- Tarun Plus: Loans from ₹10,00,001 to ₹20 lakh.
How to Apply: A Step-by-Step Walkthrough
Step 1: Checking Your Eligibility
Before you can apply, you must check your eligibility. On the Pradhan Mantri MUDRA Yojana page, click on Check Eligibility. You will be asked a series of questions to determine if you qualify.
- Select Other Business Loan.
- Choose your business type: New (for a new venture) or Existing (if you already have a business).
- Answer “Yes” or “No” to whether you have passed the 8th grade.
- Indicate if you have completed EDP (Entrepreneurship Development Programme) training.
- Select the nature of your business: Manufacturing, Business/Service, or Trading.
- Select your Gender (Male/Female).
- Select your social category (General, OBC, SC/ST).
- Indicate if you are an ex-serviceman or physically handicapped.
- Answer if you are from a North-Eastern state or other border regions.
- Select your location: Urban or Rural.
- Choose the applicant type: Individual (for a personal business loan).
Step 2: Calculating Your Loan Amount
Next, you will need to provide financial details for your project.
- Enter the total project cost. For example, let’s say your project requires ₹7 lakh.
- Enter the amount you can invest yourself. For example, you have ₹1 lakh of your own funds.
The system will automatically calculate the Required Loan Amount. In this example, it would be ₹6 lakh. After filling in these details, click on Calculate Eligibility.
The portal will then show you the loan you are eligible for. Using our example, you would see a maximum eligible loan of ₹6 lakh, with a monthly EMI of ₹12,750 for a tenure of 5 years.
Step 3: Registering and Logging In
Once you see your eligibility, click on Login to Apply.
- Register: If you are a new user, you must register first. Enter your mobile number and the captcha code, then click Get OTP. Enter the OTP you receive to complete the registration.
- Login: After registering, or if you already have an account, enter the same mobile number and captcha to log in. You will receive an OTP, which you need to enter to access your dashboard.
Step 4: Proceeding with the Application
After logging in, you will see a summary of your eligible loan. The button will now say Proceed.
- Click on Proceed.
- Review the information you provided during the eligibility check. If you need to make changes, use the “Edit” option. Otherwise, click Continue.
You will then be informed about the documents required for the next steps, which include your Aadhaar card, PAN card, bank account details, and sales details. Click Proceed again.
Step 5: Document Submission and Final Steps
This is the final stage of the application where you provide consent and upload your details.
- You will need to give consent for using your Aadhaar, Income Tax, and other details. Click through the steps by selecting Next and finally Agree and Proceed.
- You will be prompted to enter your PAN card number and Date of Birth. Click Submit.
- Next, provide your Aadhaar number, followed by your bank account details and sales details.
- After filling in all the required information, perform the Final Submit.
What Happens After You Apply?
Once your application is submitted, it is forwarded to the district-level administration for verification. This verification process may be conducted online or offline, depending on the government’s procedure. An official might call you to visit their office or may visit your location to verify your original documents.
After the verification is successfully completed, your loan is approved. The approved loan amount is then transferred directly into the bank account you provided during the application process.
