PNB Mudra Loan

Last Updated : Nov. 22, 2024, 2:43 p.m.

Under PMMY, the PNB Mudra loan is for non-farm micro-enterprises in manufacturing, trading, and services across rural, urban, and metro areas for income generation. Eligible applicants include individuals, proprietorships, partnerships, companies, LLPs, and associations of persons who are not defaulters to any bank or financial institution.

Know More About Mudra Loan

Mudra Loan is a financial initiative by the Government of India, introduced under the Pradhan Mantri Mudra Yojana (PMMY) in 2015, aimed at providing financial support to small and micro businesses in the country. The primary goal of the scheme is to promote entrepreneurship and financial inclusion by offering collateral-free loans to non-corporate, non-farming small and micro enterprises. This loan is meant to help business owners with working capital needs, business expansion, and other purposes to improve their productivity and growth.

PNB Bank E-Mudra Loan

PNB Bank E-Mudra Loan is an online facility that allows small and micro-enterprises to avail of Mudra Loans through a digital platform. This is a part of the Pradhan Mantri Mudra Yojana (PMMY) and aims to provide quick and easy access to funds for businesses involved in manufacturing, trading, and services.

Pre-requisites of E-Mudra Loan

While applying for the E-Mudra Loan, the applicant should remember the following points in mind -

• The applicant must be an existing Savings/Current account holder of PNB.
• The applicant should have a minimum 12 months banking relationship with PNB.
• Only applicants in individual or proprietorship capacity are eligible to apply (other business structures are not allowed).
• The applicant must be a Micro or Small entrepreneur.
• The PAN, Aadhaar number, and the latest address should be updated in the bank account.
• The applicant’s mobile number must be registered with the bank and UIDAI.
• The applicant should be present at their unit, business place, or residence while applying for the loan.
• The maximum loan amount available through this platform is Rs. 100,000, which is repayable over a maximum period of 60 months.
• Ensure that the correct details are entered for eligibility assessment.
• An Udyam Registration Number is required to apply for the loan. To generate your Udyam Registration Number, visit the Udyam Registration Portal .
• The loan must be utilized for business activities only.
• The applicant’s age should be between 18 to 60 years.
• Only pre-qualified customers will be eligible to apply for the loan.

Features of PNB Bank E-Mudra Loan

Here are the key features of the PNB Bank E-Mudra Loan. Read the content below to know more about it.

• Online Application:

The E-Mudra Loan is designed to simplify the loan application process by allowing borrowers to apply online via PNB's internet banking or mobile banking platform.

This eliminates the need to visit the branch physically, making it easier and more convenient for entrepreneurs to apply.

• Eligibility :

Micro and small businesses in the non-corporate, non-farming sectors are eligible.

Both existing businesses and startups can apply, as long as they are involved in activities such as trading, manufacturing, or services.

• Loan Amount :

The E-Mudra Loan offers financial assistance under three categories:

• Shishu Loan : Up to INR 50,000 .
• Kishore Loan : Between INR 50,001 to INR 5 lakh .
• Tarun Loan : Between INR 5 lakh and INR 10 lakh .

• Collateral-Free :

The loan is collateral-free, meaning borrowers do not need to pledge any assets to secure the loan, which is a key advantage for small businesses.

• Purpose :

The loan can be used for various business-related purposes, such as working capital, expansion, purchasing equipment, or funding operational costs.

• Quick Processing :

The online application allows for faster processing of the loan application, making funds available quickly to the borrower.

• Repayment Terms :

The loan repayment period generally ranges from 3 to 5 years, with monthly EMI payments.

• Interest Rates :

The interest rates for E-Mudra Loans are set as per PNB's internal policies and Mudra Ltd. guidelines, and they are generally reasonable to make the loan accessible for small businesses.

How to Apply for a PNB E-Mudra Loan?

These are the simple steps of applying for a PNB E-Mudra Loan -

• Visit the PNB official website or use the PNB mobile banking app.

• Look for the E-Mudra Loan option under the loans section.

• Fill out the online application form with your business details and loan requirements.

• Upload the required documents such as KYC, business registration, and financial documents.

• Apply for review.

• Upon approval, the loan will be disbursed directly into the borrower’s account.

PNB E-Mudra Loan is a convenient and efficient way for small businesses to access financing, empowering them to grow and sustain their operations without the need for physical paperwork or branch visits.

Types of the MUDRA Loans

PNB Mudra Loan Features

These are some of the key features of the Punjab National Bank Mudra Loan Scheme.

• Global Accessibility: You can apply for the PNB Mudra Loan from anywhere.
• Instant Approval: Loans are sanctioned quickly upon submission of all required documents.
• Simple Online Process: The entire application process is fully online, user-friendly, and hassle-free.
• Eligibility Requirement: Applicants must have an existing current or savings account with PNB that is at least 6 months old at the time of application.
• Maximum Loan Amount: Under the PNB e-Mudra (Shishu scheme), you can avail of an instant loan of up to ₹50,000 based on eligibility.

PNB Mudra Loan Interest Rate

These are the PNB Mudra Loan Interest Rates that are applicable on Mudra loans ranging from Base Rate (currently 9.60%) to Base Rate + 2.25% + TP (0.50%) for loans with a tenure of 3 years or more. These rates are subject to change as per Government or RBI guidelines.

Mudra loans are collateral-free; however, assets financed by the bank must be charged to the bank.

PNB Mudra Loan Eligibility Criteria

Here are the eligibility criteria for the PNB Mudra Loan -

• PNB Account Holder: Applicants must be existing account holders of PNB with an account that has been active for at least 6 months at the time of loan application.
• Age Requirement: Applicants should be between the ages of 18 and 60 years.
• Udyam Registration: All applicants must possess a valid Udyam Registration number.

Documents Required For PNB Mudra Loan

Here is the list of documents that are required for different PNB mudra loans i.e. Shishu, Kishore, and Tarun. Read carefully to understand better.

• Shishu Document List -

Identity Proof: Self-attested copy of Voter ID, Driving License, PAN Card, Aadhaar Card, Passport, or any Government-issued Photo ID.

Residence Proof: Recent telephone bill, electricity bill, property tax receipt, Voter ID, Aadhaar Card, Passport, or certificate from Government Authority/Local Panchayat/Municipality.

Photographs: 2 recent passport-size photographs (not older than 6 months).

Caste Certificate: Proof of SC/ST/OBC/Minority status, if applicable.

Business Identity/Address Proof: If available.

Bank Statement: Last 6 months' statement from the existing bank account (if any).

Quotation: For machinery or items to be purchased.

• Kishore & Tarun Mudra Loans Document List -

Proof of Identity : Self-attested copy of Voter ID, Driving License, PAN Card, Aadhaar Card, Passport, or any Government-issued Photo ID.

Proof of Residence : Recent (within 2 months) telephone bill, electricity bill, property tax receipt, Voter ID, Aadhaar Card, Passport, or certificate from Government Authority/Local Panchayat/Municipality.

Caste Certificate : Proof of SC/ST/OBC/Minority status, if applicable.

Business Proof : Copies of relevant licenses, registration certificates, lease/rent agreements, Udyog Aadhaar Memorandum, or other documents indicating the ownership and address of the business unit.

Bank Statement : Last 6 months' statement from the existing bank account.

Financial Statements :

• For loans above ₹2 lakh : Last 2 years' unaudited balance sheets along with income tax/sales tax returns.
• Projected Balance Sheets : For working capital limits (1 year) or term loans (loan tenure), applicable for loans above ₹2 lakh.

Sales Records : Sales figures for the current financial year up to the date of application (for existing units).

Quotations/Proforma Invoices : For assets to be purchased, along with estimates for any civil works.

Asset & Liability Statement : Of the borrower, including details of directors and partners.

Business Constitution Documents : Memorandum and Articles of Association, Partnership Deed, etc., as applicable.

Photographs : 2 recent passport-size photos of the applicant/proprietor/partners/directors (not older than 6 months).

This streamlined list ensures all essential documents are covered for the Kishore and Tarun loan categories.

PNB Mudra Loan Application Form

• Under the Pradhan Mantri Mudra Loan Yojana, click the PNB Mudra Loan Application form . Fill it out with your information and send it to the closest bank branch.
• Click on this link to apply for a Shishu Mudra loan, fill out the application form, and submit it to the nearest bank branch to apply.

Steps on How to Apply for a PNB Mudra Loan

You can apply for the PNB e-Mudra Loan by following these steps:

1. Visit the PNB e-Mudra portal.
2. Complete the PNB e-Mudra application form available on the portal.
3. Provide your Aadhaar number for e-KYC verification via UIDAI.
4. Authenticate the application with e-Sign through OTP.
5. Once processed, your loan will be disbursed within the specified timeframe.

For loans under the Mudra SHISHU category, you can apply online and receive your loan amount almost instantly. However, you might need to go to your closest PNB branch and speak with a professional regarding loans in the Kishor and Tarun categories.

Repayment Tenure of PNB Bank Mudra Loan

The repayment tenure for Mudra Loans generally ranges between 3 years to 5 years, depending on the loan amount, business type, and borrower’s ability to repay.

For example:

• Shishu Loan: Typically has a shorter repayment period (3 years or less), considering the small loan size.
• Kishore and Tarun Loans: Have longer repayment tenures (up to 5 years), allowing businesses more time to repay based on the loan amount and business needs.

Conclusion

Overall, the PNB Mudra Loan is a flexible, user-friendly solution designed to support business growth and expansion with minimal paperwork and quick processing times. The online application process for the Shishu category allows for quick processing and almost immediate disbursement, while loans under the Kishor and Tarun categories may require a visit to a PNB branch. The integration of Aadhaar-based e-KYC and OTP-based e-Sign makes the application process efficient and secure.