Pradhan Mantri Mudra Yojana is one of the most prominent loans offered by banks to Small Vendors, MSMEs, and start-ups.
Mudra Loan is a flagship loan scheme launched by Prime Minister Narendra Modi in 2015 for businesses needing financial assistance.
For any business to expand its operations, it would need money and a loan can be the best way to source that money from.
This holds for big businesses and cooperates as the banks readily offer loans to these individuals, however, small businesses and roadside vendors face a lot of problems getting the loan.
Mudra Loan targets these individuals and offers them a loan without the requirement of a Credit score or a lot of documents.
You can apply for Mudra Loans from various vendors including Government Banks in India, some public banks, NBFCs, etc. One such bank is Indian Overseas Bank.
In this article, we will discuss how to apply for Mudra Loan in Indian Overseas Bank, Documents Required, Features, Types, etc.
Features of Mudra Loan
The following are the features of the Mudra Loan in Indian Overseas Bank–
- The interest rate offered in the Mudra Loan can range between 1% to 12% per annum
- Collateral/Security is not required under the Mudra Loan
- No CIBIL Score is required for applying for the Mudra Loan
- Any Individual in non-farming activities can apply for the Mudra Loan
Types of Mudra Loan
The following are the types of Mudra Loan offered by the Indian Overseas Bank–
- Shishu Loan: Maximum Amount up to Rs. 50,000
- Kishore Loans: Maximum Amount from Rs. 50,001 up to Rs.5 Lakhs
- Tarun Loans: Maximum Amount from Rs. 5,00,001 up to Rs. 10 Lakhs
How to Apply for Mudra Loan in Indian Overseas Bank?
You can follow these steps to apply for Mudra Loan in Indian Overseas Bank–
- Visit the Indian Overseas Bank premises and ask the bank representative for the Mudra Loan application form
- Now, fill out the application form with details like name, address, education qualifications, loan purpose, industry details, etc.
- After filling out the form, attach the documents mentioned below and submit it to the bank representative
- The bank representative will forward your application to the loan department and further processing of your application will be initiated
- You will be interviewed for the loan along with negotiation related to the interest and tenure
- After that, the loan will be forwarded to other relevant departments and further verification and processing will be done
- The bank officials might visit your resident as well as office/business establishment and inquire further
- After successful processing of your loan request, you will be informed about the status of your loan and if sanctioned, your account will be disbursed with the amount
Documents Required for Applying for Mudra Loan
The following are the Documents Required for Applying for Mudra Loan–
- Identity Proof- Aadhar Card, PAN Card, Voters ID card, Driving License, etc.
- Address Card- Ration Card, Bank Account Statement, Aadhar Card, Utility Bills, credit card bill, etc.
- Business Rent Agreement or Ownership details
- Passport Size Photograph
- Income Proof- Last 1-year Bank Statement
- Copy of Profit and Loss, Asset and Liability Statement
- Business Plan Self drafted
FAQ
The maximum repayment tenure for Mudra Loan in the Indian Overseas bank is 5 years.
The maximum loan amount that you can receive under the Mudra Loan is Rs.10 Lakhs and the minimum amount is Rs.50,000/-
No, the Mudra Loan does not require a credit score as the government has launched this scheme to cater to people with no CIBIL scores. Businesses and small vendors who have no access to the
No, Farmed Based businesses are not eligible for taking Mudra Loan. Only small Manufacturing units, Small vendors, Shopkeepers, and Service-based businesses can apply for Mudra Loan.
Yes, you can apply for Mudra Loan as a small manufacturing business. The Mudra Loan is specifically designed for small manufacturing units to ensure they get financed easily.
