How to Apply for Mudra Loan in Canara Bank? Documents Required, Application Process, etc.

Mudra Loan is a Government Scheme introduces in 2015 to provide loans to non-corporates small businessmen, especially from the informal sector.

The interest rates are very nominal in this scheme also, this loan is provided easily without a lot of documentation or guarantees.

You can apply for the Mudra Loans in any of the public sector banks and some private banks in India. Canara Bank is one such bank where you can apply for the Mudra Loan.

In this article, we will discuss how to apply for Mudra Loan in Canara Bank? documents required, the application process, etc.

Types of Mudra Loan

The following are the types of mudra loan-

Mudra Loan SchemeAmount
ShishuUp to Rs. 50,000
KishoreBetween Rs. 50,000 & Rs. 5.00 Lakh
TarunBetween Rs. 5.00 Lakh & 10.00 Lakh

Eligibility for Mudra Loan

The following are the eligibility for Mudra Loan

Minimum age of eligibility18 years
Maximum age of eligibility65 years
Who can avail a Mudra LoanLoans can be availed by new and existing units
Security or collateralNo collateral or third-party security is required
Interest RateWithin 5-12.5% Interest Rate

How to Apply for Mudra Loan in Canara Bank?

The following are the step by step instructions on how to apply for Mudra Loan in Canara Bank-

  • Visit the official website of Canara Bank Mudra Loan by clicking on this link- https://canarabank.net.in/MudraLoan/
  • Now, a portal will open where you’ll be asked a question on you’ve existing account or not
  • Choose option appropriately and provide your account number followed by clicking on the proceed button
  • Now, an OTP will be sent on your Registered mobile number which you’ll have to enter in the given field
  • Click on PMMY- Shishu Mudra Loan followed by selecting the loan amount and tenure followed by accepting the terms and conditions
  • Now, a page will appear where a detailed eligibility for the loan is listed, read it and click on the apply button
  • After clicking on the apply button, you’ll be redirected to a new partially filled form which is auto populated using your Aadhaar number and PAN Card
  • You’ll have to provide your Udyam Registration Number, Constitution where your business is and other kYC documents (if any) followed by clicking on the proceed button
  • Now, an OTP will be sent on your registered mobile number of Aadhaar and Udyam Registration. You’ll have to provide both the OTP in the relevant fields
  • Now, preview your application form which is auto-populated using your documents you’ve provided
  • In the next step, you’ll have to provide details like investment in Plant & Machinery /Equipment, Turnover, additional contact numbers, etc.
  • Now, eligible loan amount and EMI for tenure of 12, 24, and 36 months will appear on the screen which you’ll have to choose accordingly as per your comfort followed by selecting your preferred branch and click on the confirm and proceed button
  • After clicking on the confirm button, a summary of your application form will appear. You’ll have to click on the confirm and proceed button
  • Your application for loan has been submitted and your application form will be reviewed by the bank and you’ll be notified about the loan by the bank branch

Documents Required for Mudra Loan in Canara Bank

The following are the documents required for a mudra loan in Canara Bank-

  • Duly filled application form with passport-sized photographs
  • KYC documents of the Applicant: Voter’s ID card, Passport, Driver license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
  • Bank Statement of last 12 months
  • Company establishment certificate
  • Udayam Certification Number
  • Proof of belonging to SC/ST, OBC, or any minority group, if applicable
  • Any other document required by the bank

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