Match the report depth to the category
Preparing a twenty-page report for a ₹40,000 Shishu loan wastes everyone's time. Submitting a one-page note for a ₹9 lakh Tarun proposal gets it returned.
| Category | Amount | Report depth expected |
|---|---|---|
| Shishu | Up to ₹50,000 | Activity note and cost estimate usually suffice |
| Kishore | ₹50,001 – ₹5 lakh | Full projections expected |
| Tarun | ₹5,00,001 – ₹10 lakh | Full projections, DSCR and repayment schedule |
| Tarun Plus | ₹10 lakh – ₹20 lakh | As Tarun, plus a clean prior repayment record |
The core schedules
- Promoter and business profile with KYC
- Activity description in plain, specific terms
- Means of finance — own contribution against the Mudra loan
- Fixed assets with matching quotations
- Working capital computation
- Projected P&L, balance sheet and cash flow
- Repayment schedule matched to the sanctioned tenure
- DSCR working
- Break-even analysis
Documents to have ready before you start
- Aadhaar and PAN of the applicant
- Proof of business address, and Udyam registration where applicable
- Category certificate where a concession is claimed
- Quotations for every asset in the schedule
- Six to twelve months of bank statements for an existing unit
- Photographs of the premises
Four reasons Mudra files come back
- Projected turnover the stated premises or capacity cannot physically support.
- No working capital line — the unit shows profit but has nothing to trade with.
- Own contribution missing, or present but unexplained.
- Repayment schedule built on a tenure different from the one being sought.
A note on trading businesses
A large share of Mudra lending goes to retail and trading units, where fixed assets are small and working capital is almost the whole requirement. For these, the working capital computation is the report — stock holding, credit given to customers, credit taken from suppliers. A trading proposal that leads with fixed assets and treats working capital as an afterthought reads as though it was written from a manufacturing template.