Mudra Loan and Reason of Rejection मुद्रा लोन कैसे मिलेगा? रिजेक्ट होने के कारण और समाधान

Mudra Loan and Reason of Rejection: Whenever someone starts a business faces challenges regarding managing the funds. At that time they have options to have loan to deal with this shortage of fund. In Indian MSME market, approval of a loan is not an easy thing. Due to the lack of sufficient collateral and poor credit histories many application get rejected. To get rid of this situation in 2015, a scheme was launched by the Government named the PM MUDRA Loan Yojana 2025. MUDRA doesn’t disburse loans to the applicants directly. The applicants have to follow some sort of procedures. Apart from this also there are some issues with Mudra loans that can result in application being rejected.

MUDRA Loan 2025 helps small business owners, particularly in rural areas, to secure financing more easily. The whole purpose of the pm mudra yojana loan apply online scheme is to make the process of lending and borrowing easier. But the applicants face delays and rejections due to their incomplete paperwork or inaccurate document. So here we are to discuss about the problem behind the application process of the MUDRA loan 2025.

What is MUDRA Loan Yojana 2025?

MUDRA denotes Micro Units Development and Refinance Agency. It is supporting scheme which normally designed to provide funds to the small businesses and entrepreneurship. It was created to provide refinancing and funding for micro-enterprises through financial institutions such as banks and non-banking financial companies. In the era of financial inclusion, MUDRA loan scheme 2025 is playing an important role to boost the economy.

MUDRA Yojna is launched by the govt. of India and it acts as a refinancing institution and financial services provider. It specifically serves small businesses that often find it difficult to obtain loans from traditional banks. We can consider this as a medium between the banks, NBFCs, MFIs and the borrowers. Having MUDRA yojana one can get a business loan of up to ₹20 lakh without giving any mortgage. This means the borrowers don’t have to undertake any property or assets as security. This is particularly beneficial for small businesses, traders, artisans, street vendors, and micro-entrepreneurs who usually lack formal assets.

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Types of Mudra Loan 2025

Basically, Mudra loans are categorized into three different funding needs that is Shishu Loan, Kishore Loan, Tarun Loan. The Shishu loan is meant for then who are going to start their business. It offers an amount of Rs. 50000.00, while the Kishore loan category offers Rs. 50,000 to Rs. 5,00,000 to the applicants who wants to grow their business from the seeding stage to one stage upper. Then comes the Tarun loan category, which helps the applicants in further growth of their business by providing them amounts above Rs. 5,00,000 and up to Rs. 10,00,000.

Silent Features of PMMY Loan Yojana 2025

Mudra loan carries several features like it includes cash credits along with term loans and overdraft options. The applicant can get loans up to Rs. 20 lakhs and this limit was Rs. 10 lakhs after the Budget 2024. As per the policies set by different banks the interest rates are decided. Also the tenure is settled by the lending institution. If we see the processing fee, then you will be glad to know that there is no processing fees for loans that are up to Rs. 50,000, coming under the Sishu category. The processing fees for the Kishore and Tarun category loan varies as per the lending institution.

Mudra Loan Rejection Reasons 2025

Getting a loan is not that easy. Every process need some fair documentation. At the time of applying MUDRA loans, many small business owners face some difficulties with Mudra loan applications that can result in rejection. Here are some challenges related to Mudra loans and tips to help you get through them. So at first we can consider of the major problem is lack of knowledge. As this is just launched 10 years of now, the scheme is relatively new compared to traditional business loans, which is why many people in the business community are not well-informed about it.

To have the loan the applicants need to meet the eligibility requirement. And lack of this led to confusion and causes rejection. Many applicants go to banks, NBFCs, and MFIs as individuals instead of as business entities which complicates the documentation process.

The partnered banks are sometimes refuse to approve applications for the PM loan yojana due to concerns about non-performing assets which results in delays in loan processing for borrowers. New entrepreneurs looking for small business loan options frequently encounter rejections because they lack a credit history.

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Sometimes apart from the credit history, it causes delay in the approval due to lack of efficient staffs and digitalization at the rural bank branches, who automatically causes slowdownin the approval of small loans for business owners. On the other hand presenting the accurate documents like business registration or tax documentation is necessary. Lack of presenting these documents complicates the process of getting loans under the PM loan yojana. Lacking in financial literacy is another reason of not getting the loan further. Lack of credibility or having no knowledge of drafting a plan or a proper financial management lead to rejection also.

The lack of knowledge about the types of loan, eligibility criteria, the application process results in this financial resource being underused, especially in rural regions where information access can be limited. The applicants of rural areas find more difficulty and face the rejection as they find it hard to keep track of their Mudra Yojana loan applications due to limited digital support.

Although applying for a loan online is available, delays in updating loan account information and status create uncertainty for borrowers. Rejections validate the points of errors or common mistakes made by the applicants like having a different address on their Aadhaar card as compared to their rental agreement which can the mismatch. And in the cases where the applicants fails to prove their real business purpose, the banks automatically reject the applications and don’t approve.

The financial intermediaries need current account, Udyam Certificate, past transactional records to prove the credibility. Without any banking history, there is no loan. In the case of poor CIBIL score that means if they will found you as a defaulter then your loan will get the rejection straight away. There are many more things like unsteady deposits, several bounced cheques, or a low average balance which indicate financial instability, can be the cause of the rejection. Moreover if you are already paying of the debts, and your debt to income ratio is increasing, in this case you will face the rejection.

So overcome the hurdles by adopting required measures. If you will apply the effective measures it will help you to succeed further. Apart from lots of challenges, the intermediaries have already sanctions more than 30 lakh crore to the borrowers via MUDRA loan. And with this the market is growing. The businesses are strengthening their roots and sustaining in this completive world. So make sure of your documentation and improve your chances of getting the MUDRA loan.

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