Mudra Loan: Know Complete Procedure to Get Loan Under The Mudra Yojana

The Mudra loan or the Micro Unit Development and Refinance Agency loan is under the Pradhan Mantri Mudra Yojana. It offers loans to various individuals and medium and small enterprises. Under these loan schemes, one can easily get a loan under the MUDRA Yojana. The prime minister of India started this scheme on 8 April 2015 to promote manufacturing activities and self-employment opportunities in the country.

There was a time when the Indians wanted to start their establishment. Some of the people were women. But due to the absence of funds, these women could not succeed in their plans. With the help of a Mudra loan for women, one can start their establishment without any hassle. Also, considering the cheap and easy loans, the Mudra loan scheme offered the needed financial help to these women. This article would emphasize how one can take a loan under Mudra Yojana.

Availability of the Mudra Yojana loan

The Mudra loan for women offers to fund various non-cooperative and small business sectors. Receive the loan from the nearest institutions like the non-banking financial institutions for the microfinance institutions. One can also look for banking financial institutions to get the loan amount. The financial institutions would provide the borrower with a loan amount as per their requirement. This Yojana has three categories of loan including:

  • Shishu Mudra Yojana loan

In this section, one can get a loan of up to Rs. 50,000. Any entrepreneur who wants to start a business can look forward to this loan.

  • Kishore Mudra Yojana loan

It covers a loan up to Rs. 50,000 to Rs. 5 lakhs. One can use this for expanding their business organization.

  • Tarun Mudra Yojana loan

If the business wants to carry out any measure of expansion, then it can look forward to this category of loan. It covers Rs. 5 lakhs to Rs. 10 lakhs.

Institutions that provide the loan amount

Various institutions have taken the authority to offer Mudra loans for women under the Mudra Yojana. these banks include:

  • Regional rural banks
  • Private and public banks
  • Small finance banks
  • Non-banking financial institutions
  • Cooperative banks
  • Microfinance institutions

Anyone who wants to borrow money as a startup business loan can take the help of Mudra loans from various lenders .  In case, you do  not qualify for the MUDRA loan, you can avail of unsecured business loans from leading NBFCs and fund your working capital expenses quickly. 

Eligible borrowers of the loan

Any Indian citizen with a valid business plan can apply for a loan. People who are eligible to borrow under Mudra Yojana includes:

  • Truck and taxi operators
  • Vegetable and fruit sellers
  • Restaurants and hotel operators
  • Barbershop owners
  • Bike or car repairer
  • People engaged in the construction, handloom or sewing industry
  • People engaged in the manufacturing industry
  • People engaged in the service sector, including the photocopy shop and mobile recharge.

Procedure to get the loan

One needs to apply for the Mudra loan in any financial institution offering the loan amount. You need to be very particular about your business plan to provide you with the loan. If the bank manager is unsatisfied with your business plan, then you may not get the approval of the loan.

Even if you want to expand the business, you have to provide a plan stating the information about expansion. Once you apply for the loan, you need to provide the necessary documents. You have to provide proof of your identity along with proof of residence. It should be accompanied by photographs, partnership deeds, statements of accounts and the last 2-year balance sheet.

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