How to Apply for a Mudra Loan in Canara Bank? Documents Required, process, etc.

Business Loans are a great way to progress in business and Mudra Loan is one such loan that can help businesses, especially the businesses which are from the informal sector.

The interest rates that you’ll have to pay for the Mudra Loan are very nominal and the collateral required is also very lenient and in some cases not required.

You can apply for Mudra Loan in any of the Public Sector banks and one such bank is Canara Bank. In this article, we will discuss How to Apply for a Mudra Loan in Canara Bank, the Documents Required, the process, etc.

Types of Mudra Loan

There are three types of Mudra Loan- Shishu, Kishor, and Tarun. These three loan scheme serves different category of borrower, which are as follows-

Mudra Loan SchemeAmount
ShishuUp to Rs. 50,000
KishoreBetween Rs. 50,000 & Rs. 5.00 Lakh
TarunBetween Rs. 5.00 Lakh & 10.00 Lakh

Eligibility of Mudra Loan

The following are the eligibility criteria for Mudra Loan-

  • Any Indian Citizen between the age of 18 years to 65 years of age can take Mudra Loan
  • Any Business or Start-Ups can avail of the loan with a proper business plan

How to Apply for Mudra Loan in Canara Bank?

You can follow these steps to apply for Mudra Loan in Canara Bank-

  • Visit the official website of Canara Bank Mudra Loan and answer the question-“ Do you have an existing account with Canara Bank ?”
  • Now, if you’ve pressed yes, then you’ll have to enter the account number in the given field followed by clicking on the proceed button
  • An OTP will be sent from your registered mobile number and you’ll have to enter the OTP in the given field
  • Now, click on PMMY-Mudra Loan followed by select the loan amount and tenure followed by accepting the terms and condition
  • A page will appear where detailed eligibility for the loan is listed followed by clicking on the apply button
  • Now, you’ll be redirected to a partially filled form which will be automatically populated using your Aadhar card and PAN card
  • After filling out the form, you’ll have to enter the Udyam Registration Number, and other KYC documents followed by clicking on the proceed button
  • An OTP will be sent on your registered mobile number of Aadhar and Udyam registration and enter the OTP in the relevant fields
  • Now, preview your application form and click on the Next button
  • After clicking on the Next button, provide details like investment in Plant & Machinery/ Equipment, Turnover, additional contact numbers, etc.
  • Now, select the EMI tenure of 12, 24, and 36 months as well as the loan amount followed by clicking on the confirm and proceed button
  • After clicking on the confirm button, a summary of the application form will appear followed by clicking on the confirm and proceed button
  • Your application form for Mudra Loan has been submitted and your application form will be reviewed by the bank. You’ll be further contacted by the Canara Bank for loan approval and document verification, etc.

Documents Required for Mudra Loan in Canara Bank

The following are the documents required for a Mudra Loan in Canara Bank-

  • Duly filled application form with passport-sized photographs
  • KYC documents of the Applicant: Voter’s ID card, Passport, Driver’s license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
  • Bank Statement for the last 12 months
  • Company establishment certificate
  • Udayam Certification Number
  • Proof of belonging to SC/ST, OBC, or any minority group, if applicable
  • Any other document required by the bank

FAQ

What type of loan is a MUDRA loan?

MUDRA is an NBFC that is the supporting development of the micro-enterprise sector in the country. MUDRA provides refinance support to businesses under the scheme of Pradhan Mantri MUDRA Yojana.

Is a CIBIL score required for the MUDRA loan?

No, a CIBIL score is not required for applying for the Mudra Loan as the government launched this scheme to help people start a business or grow an exisiting business.

Is ITR required for a MUDRA loan?

Yes, ITR is a necessary document for applying for the MUDRA loan. You’ll have to provide at least two year’s worth of ITR as a valid document.

Can Start-Ups apply for the Mudra Loan?

Yes, startups can also apply for Mudra Loan.