Features and Benefits of Digital e-Mudra Loan

Setting up a business requires a lot of time, effort and money. While many entrepreneurs may put in the time and effort required to start and grow a business, many struggle with the funding part. This is where an e-Mudra loan from a reputed bank such as an Axis Bank Mudra loan or an ICICI Bank Mudra loan can help you.

Leading banks in India offer the digital e-Mudra loan to help MSME entrepreneurs and business owners start, set-up and expand their businesses that are engaged in the manufacturing, trading and services sectors. Under this loan, businesses can get an unsecured loan of up to ₹10 Lakhs. 

Under the e-Mudra loan scheme, there are three types of loans that are offered: 

• Shishu Mudra Loan

Shishu, meaning small child in Sanskrit, this loan category offers a maximum loan amount of ₹50,000 and mostly caters towards MSMEs that require very little funding. There is also no minimum loan amount that you can avail under this loan category. 

• Kishor Mudra Loan 

Kishor, meaning young boy in Sanskrit, under this loan category, you can get a loan of up to ₹5 Lakhs. This for businesses that have been in business for a couple of years but require additional funding for expansion and development. 

• Tarun Mudra Loan 

Tarun, meaning young man in Sanskrit, under this loan category, you can get a loan of up to ₹10 Lakhs. This loan category is best for well-established businesses that are looking for funding to scale up. 

Eligibility Criteria for the Digital e-Mudra Loan

There are some eligibility criteria that you need to meet in order to qualify for the e-Mudra loan. Here they are: 

• The e-Mudra loan facility is only available to partnership firms, individuals, proprietary concerns, public and private companies. 
• The applicant must not have a history of defaulting on loan or credit repayments. 
• You must have the necessary skills needed to operate in specific industries (if applicable). 

Features and Benefits of a Digital e-Mudra Loan

Here are some of the features and benefits of a digital e-Mudra loan: 

• Easy Application 

As the name suggests, the digital e-Mudra loan can be applied online and does not require you to take time out of your busy schedule and visit a bank branch. All you need to do is go on your lender’s website and navigate to the e-Mudra section to get started. Just keep all required documents handy and you should be able to apply for your digital e-Mudra loan from anywhere, any time. 

• Quick Loan Approvals 

You might be thinking that since this is an unsecured loan that it might take a while to get approved and processed. This cannot be far from the truth- a digital e-Mudra loan application can be approved in as little as 30 minutes! Hence, the e-Mudra loan is perfect for you if you need funding quickly or under a very tight schedule. 

• Minimal Documentation 

The digital e-Mudra loan only requires a few very essential documents like your identity proof, address proof, qualification proof (if applicable) and income proof to get started on your application. A digital e-Mudra loan is perfect for you if you do not have a lot of time to spare. 

• Fully Digital, Paperless Process 

When you apply for a digital e-Mudra loan, your entire application process can be done online, saving you the hassle of visiting a physical branch. This also means that you need not submit physical copies of your documents, which can be cumbersome. Instead, all you need to do is submit scanned or digital copies of your documents and that’s all, you can get on with your e-Mudra loan application!

• Collateral-free Funding

Offering up a collateral as security can require a lot of processing and documentation, this might be a hassle for many entrepreneurs. This is why the digital e-Mudra loan does not require any collateral or security. This simplifies the entire loan process and saves you a lot of time and effort. 

• Strengthens the MSME Sector

India has a large number of its population running small and medium scale businesses. Empowering small and medium sized business’ entrepreneurs with the funding they need to take their business to new heights is not only beneficial to the entrepreneurs and business owners but also to the economy of India. 

If you’re a business owner looking for funding for your business, look no further than the digital e-Mudra loan! Its collateral free loan structure, simple application process and entirely paperless documentation process make it an ideal choice for busy small and medium business owners.