Axis Bank Mudra Loan: In an effort to boost the small and micro enterprises sector, the Government of India launched a special financial scheme specifically for the industry in 2015. This flagship scheme is called Pradhan Mantri Mudra Yojana (PMMY).
Under the Pradhan Mantri Mudra Yojana, Axis Bank gives loans to small and micro-entrepreneurs by Axis Bank. The main objective of this scheme is to provide financial assistance to the non-corporate sector engaged in manufacturing, trading, and service business. It also provides funding to the sector of allied agricultural activities. We will read more about the loan below.
|Bank Name||Axis Bank|
|Yojana Name||Pradhan Mantri Mudra Yojana|
|Axis Bank Mudra Loan Amount||Max. up to Rs. 10 lakh|
|Axis Bank Mudra Loan Interest Rate||8.05%|
|Mudra Loan Amount: Shishu scheme||Up to Rs. 50,000|
|Mudra Loan Amount: Kishore scheme||Between Rs. 50,000 and Rs. 5 lakh|
|Mudra Loan Amount: Tarun scheme||Between Rs. 5 lakh and Rs. 10 lakh|
|Bank Official Website||Click Here|
Axis Bank PMMY Mudra Loan helps individuals and micro-enterprises to cover up the following expenses:
- Setting up a new business
- Business expansion
- Purchasing a new plant & machinery
- Working capital for business
- Purchasing business equipment or commercial vehicles
- Training or hiring new staff
Axis Bank Mudra Loan Features
- Requires minimal paperwork and documentation for Axis Bank Mudra Loan
- Fast, easy, and hassle-free approvals and disbursements
- The primary purpose of MUDRA loan is to stage the growth/development and financing needs of micro-units and business owners.
Axis Bank Mudra Loan Purpose
Following is a list of the activities that can be covered under MUDRA loans:
- Transport Vehicles: Purchase of transport vehicles such as auto-rickshaws, small goods transport vehicles, three-wheelers, e-rickshaws, taxis, etc. for transportation of goods and passengers. Tractors / Tractors Trolley / Power Tillers used only for commercial purposes are eligible for assistance under PMMY. Two-wheelers used for commercial purposes are also eligible for coverage under PMMY.
- Community, social, and personal service activities: Salons, beauty parlors, gymnasiums, boutiques, tailoring shops, dry cleaning, cycle, and motorcycle repair shops, DTP and photocopying facilities, drug shops, courier agents, etc.
- Food Product Sector: Papad making, Pickle making, Jam/Jelly making, Agricultural product preservation at the village level, Sweet shops, Small service food stalls and daily catering/canteen services, Cold chain vehicles, Cold storage, Ice making units, Ice cream Manufacturing units, making biscuits, bread and buns, etc.
- Textile Product Sector/Activity: Handloom, Power Loom, Khadi Activity, Chikan Work, Zari, and Zardozi Work, Traditional Embroidery and Handicraft, Traditional Dyeing and Printing, Apparel Design, Weaving, Cotton Ginning, Computerized Embroidery, Sewing, and Others Textile non-garment products such as bags, vehicle accessories, furnishing accessories, etc.
- Business Loans for Traders and Shopkeepers: Financial assistance for lending to individuals for carrying out their shops/trade and business activities/service enterprises and non-farm income-generating activities, with beneficiary loan size up to 10 lakh per enterprise/borrower.
- Equipment Finance Scheme for Micro Units: Beneficiary loan size up to 10 lakhs.
- Activities allied to agriculture: fisheries, beekeeping, poultry, livestock-rearing, grading, sorting, agro-industry aggregation, diary, fisheries, agri-clinics, agribusiness centers, food, and agro-processing, etc.
Axis Bank Mudra Loan Types
|Shishu||Loans up to Rs. 50,000|
|Kishore||Loans between Rs. 50,000 and Rs. 5 lacs|
|Tarun||Loans between Rs. 5 lacs and Rs. 10 lacs|
- Shishu Yojana
Micro or small business owners can opt for this category of Mudra loans. Special businesses can apply for up to Rs. 50,000 in the loan amount. This plan is specially customized for those people who need a small capital to set up their new business. To avail of this loan, applicants need to submit their business ideas.
- Kishore Yojana
Business owners who have an ongoing business and want to expand it into a more viable venture can opt for this category of MUDRA loans. Special businesses can apply from Rs. 5 lakh in loan amount up to Rs.50,000. To avail of this loan, the business needs to fill up the loan application and submit proper business documents to demonstrate the current position of the business in the market.
- Tarun Yojana
Small business owners who have a full-fledged business and want to expand further can opt for this category of Mudra loans. Special businesses can apply for up to Rs. 10 lakh in the loan amount.
Axis Bank Mudra Loan Eligibility Criteria
Axis Bank PMMY Mudra Loan is offered to wide business segments and everybody who are:
- Start-up business owners
- Small Industrialists
- Business vendors
- Individuals involved with agriculture
Axis Bank Mudra Loan Documents Required
The applicants who clear all the eligibility criteria can proceed with the documentation process. The applicant will need the following documents:
- Identity Proof: Aadhaar Card, Passport, Voter I-Card, Driving License, etc, and 2 Passport-sized photographs of the applicant (must).
- Residential Proof: Aadhaar Card, Passport, Bank statements, telephone or electricity bill, or Address of the enterprise (if any).
- Income Proof: Latest ITR documents, Last 6 months’ bank statement.
- Quotation Proof: Items to be purchased for business use (if any).
- the license of the enterprise (if any).
Axis Bank Mudra Card
Mudra card is a debit card that is issued against the loan taken under the PMMY account.
The MUDRA card can be used to manage working capital limits across multiple withdrawals and credits in a cost-efficient manner, while simultaneously keeping the interest burden to a minimum.
A MUDRA card can be operated across the country for cash withdrawal from any ATM/Micro ATM and for making payments through any of the ‘Point of Sale’ machines.
FAQ Axis Bank Mudra Loan
what is Axis Bank Mudra Loan Interest Rate?
8.05% Interest Rate
How much Axis Bank Mudra Loan Amount
Max. up to Rs. 10 lakh
How much Mudra Loan Amount in the Shishu Yojana
Up to Rs. 50,000
How much Mudra Loan Amount the Kishore Yojana
Between Rs. 50,000 and Rs. 5 lakh
How much Mudra Loan Amount Tarun Yojana
Between Rs. 5 lakh and Rs. 10 lakh