What are the documents required for MUDRA loans?
The Pradhan Mantri Mudra Yojana (PMMY) provides loans of up to Rs. 10 lakh to micro and small enterprises in the non-corporate and non-farming sectors. Borrowers are required to furnish a specific set of documents to avail funding. Here is a comprehensive list that you can refer to.
Documents for MUDRA loan
To apply for a loan under the Pradhan Mantri MUDRA Yojana (PMMY), applicants must provide documents to verify their identity, address, business ownership, and financial background. Below is a detailed list of required documents based on general and specific loan categories:
General documents required for all MUDRA loan applicants:
- Proof of identity: Aadhaar card, PAN card, Voter ID, driving licence, or passport.
- Proof of address: Aadhaar card, Voter ID, driving licence, passport, or recent utility bills.
- Proof of business: Ownership documents, business address proof, or establishment certificate.
- Additional documents: Caste certificate (for reserved categories), bank statements, income certificates, IT returns, or Form 16 verified by a chartered accountant.
These documents ensure timely processing and approval of loans under the MUDRA scheme launched by the Government of India. Before you begin, it's a good idea to check your business loan eligibility so you're well-prepared with financing options if your business needs exceed the limits of a MUDRA loan.
Additional documents required for specific MUDRA loan types:
For vehicle loan under PMMY:
- Vehicle loan application form
- Two recent passport-sized photographs
For business installment loan under PMMY:
- Loan application form
- Two passport-sized photographs
- Trade references
For business loan under PMMY:
- Completed loan application form
- Bank statements for the past 12 months
For partnerships or registered companies:
- Partnership deed or memorandum and articles of association
Providing complete and accurate documentation helps ensure smooth disbursal and approval under the MUDRA Yojana. If you’re looking to expand your business or meet urgent financial needs, you can also apply for our business loan with minimal paperwork and faster approvals.
Other MUDRA loan documents
- Photos of the business owners, partners, etc.
- Proof of SC, ST, OBC, etc.
- Balance sheet of last 2 years
- Income/ sales tax returns
- Bank account statements
- Partnership deed or memorandum and articles of association.
- Sales made during the current FY and up to the loan application filing
- Estimated balance sheet for 1 year or the loan tenure
- Business report certifying economic and technical viability of the business
For businesses with higher capital requirements, Bajaj Finance provides SMEs and MSMEs with collateral-free business loans up to Rs. 80 lakh. These loans are easy to qualify for and require minimal documentation. You can check your pre-approved business loan offer instantly to see how much funding you may already be eligible for.
The documents required for MUDRA loans are meant to verify the identity, address, and eligibility of the applicant, as well as the feasibility and viability of the business. The applicants should ensure that they have all the necessary documents ready before applying for the loan. Submit them along with the duly filled loan application form to the lender of their choice. The lender will then process the loan application and sanction the loan amount after verifying the documents and conducting due diligence.
Important points to note:
Applicants are advised to gather all necessary documents in advance before submitting their loan application to the selected lender. Once the application is submitted, the lender will carry out document verification and due diligence before approving the loan. For businesses with larger funding needs, some financial institutions offer collateral-free business loans of up to Rs. 80 lakh, with straightforward eligibility conditions and minimal documentation.
It is important to note that most MUDRA loan applications require the submission of Income Tax Returns (ITRs) for the last two financial years. This enables lenders to evaluate the financial standing and creditworthiness of the business. Ensuring that all required documents are accurate and complete helps speed up the loan processing and improves the likelihood of successful approval under the MUDRA Yojana.
Disclaimer:
We have discontinued this product (MUDRA loan). Please reach out to us on +91-8698010101 to know more about the current financial services that we provide.
Also Read: MUDRA loan eligibility criteria
Frequently asked questions
No, GST registration is not mandatory to apply for a MUDRA loan. However, it may be required depending on the loan amount, business type, and lender’s policies. For higher-value loans or certain sectors, lenders may request GST details to verify turnover and business authenticity during assessment.
Yes, first-time borrowers may need to submit extra documents to support their application. These can include business registration proof, income certificates, trade references, and a detailed business plan. Lenders may request these to assess the applicant’s creditworthiness and the viability of the business, especially in the absence of previous borrowing history.
It is possible to apply for a MUDRA loan without formal income proof, especially for small loans under the 'Shishu' category. However, lenders may still request alternative documents such as bank statements, self-declared income details, or Form 16 to evaluate repayment capacity, depending on the loan amount and category.
