Axis Bank MUDRA Loan

An initiative of the Government of India, the Pradhan Mantri MUDRA Yojana (PMMY), was launched in April 2015 with the objective of providing financial assistance in the form of loans to small and micro enterprises in the non-farm sector. The purpose for taking the loan encompasses a broad range of reasons such as income improvement and employment generation in industries, trade and service sectors, and in allied agricultural activities as well.

Categories of Axis Bank MUDRA Loans

MUDRA Loans are divided into three categories based on their loan amount:

Shishu: Loans up to Rs. 50,000 approved under the program

Kishore: Loans from Rs.50,001 to Rs.5,00,000 approved under the program

Tarun: Loans from Rs.5,00,001 to Rs.10,00,000 approved under the program

Under PMMY, the highest loan amount that can be obtained is Rs.10,000,000.

Note – This classification serves as a benchmark for the subsequent graduation/growth phase and indicates the recipient micro unit’s or entrepreneur’s finance requirements and stage of growth/development.

Nature of Credit Facility

• The loan is collateral-free, meaning that borrowers can obtain a MUDRA loan without having to furnish any security or collateral.
• The loan amount may be obtained as a fund-based facility (such as a term loan, overdraft, or cash credit) or as a non-fund-based facility (such as a bank guarantee or letter of credit).

Axis Bank MUDRA Loan Features

The Axis Bank MUDRA loan has the following features:

• The business profile, financial evaluation, prior performance history, loan amount, and loan term all affect the interest rates for Axis Bank MUDRA loans.
• Both online and offline applications are accepted for Axis Bank MUDRA loans.
• Under the Axis Bank MUDRA loan program, the lowest loan amount available is Rs.10,000, while the highest loan amount available is Rs.10 lakhs.
• The Axis Bank MUDRA loan does not require collateral. This means that an Axis Bank MUDRA loan can be applied for without the need for any pledged assets or collateral.
• Such Loan amounts can be accessed by cash credits, overdraft accounts, term loans, or non-fund-based facilities like bank guarantees and letters of credit.
• Applications for this loan are open to small and microbusiness owners working in any non-farm industry.

Read Also: MUDRA Loans Explained: Your Pathway to Small Business Success

Eligibility Criteria of Axis Bank MUDRA Loan

All small and microbusiness owners working in the non-farm sector who fulfill the following requirements are eligible for the Axis Bank MUDRA loan:

Must be involved in activities that generate revenue.

Trade, manufacturing, and services (including related agricultural industries) should be pursued.

Maximum credit limit is Rs.10 lakhs.

Axis Bank MUDRA Loan Interest Rates

The interest rates concerning the MUDRA loan has not yet been disclosed by Axis Bank. To know the appropriate interest rates for Axis Bank MUDRA Loans, kindly locate the nearest Axis Bank branch.

Documents Required for Axis Bank e-MUDRA Loan

The following paperwork is needed to apply for Axis Bank e-MUDRA loan:

• Proof of Identity – This category of documents includes Voter ID cards, Driver’s licenses, PAN cards, Passports, Aadhar cards and any other legal identification documents.
• Proof of Residence – Recent utility bills, such as phone and energy bills; voter ID cards, passports, property tax receipts, Aadhaar cards, etc., serve as proof of residence.
• The applicant’s most recent photo (2 copies). Photographs submitted must not be more than six months old.
• Community evidence, if any.
• If available, evidence of the legal entity or the address of such entity.
• If applicable, the last six months’ statement of accounts with the current banker.
• Documents confirming the existence and/or address of the entity, as well as copies of any relevant permits, contracts, certificates, and registration documents.
• Any further records of the ownership and address of the business endeavor or ventures.
• Memorandum on Udyog Aadhaar
• The current banker’s statement of accounts for the last six months.
• The current business units’ unaudited balance sheets over the previous two years.
• Returns for sales taxes and/or income taxes (only applicable for loans of Rs.2 lakhs and above).
• Projected balance sheets of new and existing businesses for a year, if there are working capital restrictions, and for the duration of the loan, if there are term loans (applicable only for loans of Rs.2 lakhs and above).
• Sales figures for the current financial year as of the application submission date (for units already in operation).
• Proforma estimates and/or bills for items that are to be procured in the future.
• In case any construction activities are involved, cost estimates have to be prepared.
• The borrower’s asset and liability statement, which includes the directors’ and partners’ statements.
• Partnership deed of partners, the company’s memorandum and articles of association, and/or any other pertinent documents, if any.

Read Also: Understanding Shishu, Kishor, and Tarun Categories of MUDRA Loans

How to Apply for Axis Bank e-MUDRA Loan

Follow the steps to apply for Axis Bank e-MUDRA loan:

Step 1 – Go to the webpage for the Axis Bank MUDRA loan.

Step 2 – Go to the section that says ‘Start a Relationship’.

Step 3 – Select the option that says ‘Small Business Banking Application Form’.

Step 4 – You will be routed to a PDF file.

Step 5 – Fill in all the required information.

Step 6 – To proceed with the application, please contact Axis Bank representative.

Note – The information furnished in the article is subject to changes under the RBI guidelines.

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