Axis Bank Mudra Loan

Last Updated : Nov. 16, 2024, 5:22 p.m.

Axis Bank offers MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY) to support small and micro enterprises engaged in trading, manufacturing, and service sectors, including allied agricultural activities.

Eligible borrowers can avail themselves of loans up to ₹10 lakh through Axis Bank's MUDRA loan scheme, which is categorized into three segments:

• Shishu : Loans up to ₹50,000 for startups and early-stage businesses.
• Kishore : Loans ranging from ₹50,001 to ₹5 lakh for growing enterprises.
• Tarun : Loans from ₹5,00,001 to ₹10 lakh for established businesses seeking expansion.

Please note that there has been a proposal in Budget 2024 to increase the MUDRA loan limit to ₹20 lakh for entrepreneurs in the Tarun category who have successfully repaid previous loans. However, this change has not been officially implemented.

Axis Bank Mudra Loan Key Highlights

Features of Axis Bank Mudra Loan

Here are some key features of the Mudra loan offered by Axis Bank:

• Loan Amount: The Axis Bank Mudra loan offers funding from a minimum of ₹10,000 up to a maximum of ₹10 lakh under this scheme. Here are the different categories of Axis Bank Mudra loans to signify the stage of growth, development, and funding needs of a borrower:

• Security: This is a collateral-free loan facility, meaning you don't need to provide any security or collateral to avail of the loan.
  
• Type of Loan Facility: The loan amount can be obtained as term loans, overdrafts, cash credits, or non-fund-based facilities like letters of credit and bank guarantees.

The Objective of Axis Bank Mudra Loan

Mudra Yojana was launched with several goals to be achieved during its implementation. The most important of these are:

• Setting up rules for financing small and micro businesses.
• Registering and regulating all Microfinance Institutions and similar organizations.
• Helping small businesses develop and grow.
• Assisting low-income groups to start and expand their businesses.
• Making it easier for people without bank access to get loans and reducing their borrowing costs.
• Overseeing all Microfinance Institutions involved in trading, manufacturing, and services.

Axis Bank Mudra Loan Eligibility Criteria

Axis Bank provides PM MUDRA Yojana loans to small and micro businesses in non-farming sectors that:

• Are involved in activities that earn income.
• Work in manufacturing, trading, or services, including agricultural-related activities..
• Need loans up to ₹10 lakh.

A Detailed List of Activities Covered Under Mudra Loan Scheme

Here are the different activities for which you can avail an Axis Bank Mudra loan. In case of any doubt or query, you can visit the nearest bank branch:

• Transport Vehicle: You can receive financial assistance to buy vehicles used to transport goods and passengers. This includes auto rickshaws, small goods carriers, three-wheelers, e-rickshaws, taxis, and similar vehicles. Tractors, tractor trolleys, and power tillers used exclusively for business purposes are also eligible. Two-wheelers used commercially can also be covered under PMMY.
  
• Community, Social and Personal Services: Support is available for businesses like salons, beauty parlors, gyms, boutiques, tailoring shops, dry cleaning services, bicycle and motorcycle repair shops, desktop publishing and photocopying centers, pharmacies, and courier services.
  
• Activities Related to Agriculture: Eligible activities include fish farming, beekeeping, poultry farming, livestock rearing, grading, sorting, aggregation, agro-industries, dairy farming, fisheries, agri-clinics, agribusiness centers, food and agro-processing, and related services that generate income or support livelihoods. This does not include crop loans or land improvements like canals, irrigation systems, and wells.
  
• Business Loans for Traders and Shopkeepers: Individuals running shops, trading and business activities, service enterprises, and other non-farm income-generating ventures can receive financial support. Loans of up to ₹10 lakh per enterprise or borrower are available.
  
• Textile Products Sector: Financial assistance is provided for handloom and powerloom operations, khadi activities, chikan work, zari and zardozi embroidery, traditional embroidery and handicrafts, traditional dyeing and printing, apparel design, knitting, cotton processing, computerized embroidery, stitching, and making textile products like bags, vehicle accessories, and home furnishings.

Axis Bank Mudra Loan Fees and Charges Applicable

Axis Bank does not provide specific information on Mudra loan fees and charges online. Prospective borrowers are encouraged to visit an Axis Bank branch for more details.

Document Required to Apply for Axis Bank Mudra Loan

Below are the documents required to apply for Mudra loan from Axis Bank:

• Proof of Identity : Provide a self-attested copy of any of the following—Voter ID card, Driving License, PAN Card, Aadhaar Card , or Passport.
  
• Proof of Residence : Submit recent documents (not older than 2 months) such as a telephone bill, electricity bill, property tax receipt, Voter ID card, Aadhaar Card, or Passport of the Proprietor, Partners, or Directors.
  
• Business Identity and Address Proof : Include copies of relevant licenses, registration certificates, or other documents that verify the ownership, identity, and address of your business.
  
• Creditworthiness : The applicant must not be a defaulter with any bank or financial institution.
  
• Bank Statements : Provide statements of your accounts from the last six months from your existing banker, if you have one.
  
• Financial Statements : For loan amounts of ₹2 lakh and above, submit the balance sheets of your business for the last two years, along with income tax and sales tax returns.
  
• Projected Financials : Also for loans of ₹2 lakh and above, provide projected balance sheets—for one year in the case of working capital limits, and for the entire loan period in the case of a term loan.
  
• Current Year Sales Data : Include details of sales achieved during the current financial year up to the date of your loan application.
  
• Project Report : Submit a project report for the proposed venture, detailing its technical aspects and economic viability.
  
• Legal Documents : Provide the Memorandum and Articles of Association if you're a company, or the Partnership Deed if you're a partnership firm.
  
• Asset and Liability Statement : In the absence of a third-party guarantee, you may need to furnish an asset and liability statement for the borrower, including Directors and Partners, to assess net worth.
  
• Photographs : Attach two passport-sized photographs of the Proprietor, Partners, or Directors.

Steps to Apply for Axis Bank Mudra Loan

Here are the steps you need to follow for Axis Bank Mudra loan apply :

• Go to the Axis Bank Mudra loan homepage.
• Navigate to the 'Start a Relationship' section.
• Select the 'Small Business Banking Application Form.'
• Once you choose the Axis Bank Mudra loan form, you'll be redirected to a PDF document .
• Complete all the relevant fields in the form.
• Contact an Axis Bank representative to proceed with your application.

Axis Bank Mudra Loan Customer Care Numbers

You can reach out to customer care representatives by calling the following numbers:

• 1860-419-5555
• 1860-500-5555