Due to Coronavirus, the employment problem in the country increases, so if you are thinking of starting your own business after lockdown, then under the Mudra Scheme, you can take a loan of up to 10 lakh rupees from the government. Mudra Loan scheme started in 2015, is aimed at providing loans from street vendors to small businesses without any guarantee (collateral). Under this scheme, any person can take a loan to start his business. Today we are telling you about this plan.
Major Questions Related To Mudra loan
Mudra loans are classified into 3 categories –
- Shishu loan, which has a maximum limit of Rs 50 thousand.
- Kishore loan, which has a range from 50 thousand to 5 lakh rupees.
- Tarun loan, which has a maximum limit of Rs 10 lakh.
Business Plan Will Have To be Mentioned for Taking a Mudra Loan
First, the applicant has to prepare a business plan. Also, all the necessary documents have to be prepared for the loan. Along with general documents, the bank will also ask for documents related to your business plan, project report, future income, so that it can know your needs, as well as get an idea of how you will benefit or how the profit will increase.
How Can You Apply For a Mudra loan
- First of all, decide which bank / financial institution you want to take a loan from. The applicant can choose more than one bank. The bank has to fill and submit the loan application form along with the documents.
- For the Mudra loan, you have to submit the following documents along with the application form. The number of documents may be more or less depending on the loan amount, nature of the business, bank rules, etc.
- Mudra loan application, business plan or project report, identity-related documents like PAN card, Aadhaar card, voter ID card, etc. Partnership related documents (deed), tax registration, business license, etc. in case of more than one applicant.
- Proof of residence documents, such as telephone bills/electricity bills, etc. Less than 6 months old photographs of the applicant, quotation of the machine or other material that you want to buy, as well as information about the supplier/shopkeeper from where you will buy, categories (SC / ST / OBC / Minority), if applicable, Balance Sheet and Projected Balance Sheet for the last two years (on loans above two lakhs).
- For Mudra loans, an application has to be made to the government or any other bank or financial institution that gives Mudra loans. For the application, you will have to submit the complete information related to your business/plan and other necessary documents.
- If the application is found correct, the bank or financial institution will pass the Mudra Loan and the applicant will be provided with the Mudra Card.
Major Benefits of Mudra Loan Scheme
- The special thing about the Mudra loan is that there is no fixed interest rate in it.
- Different banks may charge interest at different rates on the loan.
- The rate is determined by the nature of the business and the risk associated with it.
- Generally, the interest rate is 10 to 12 per cent per annum.
Special Things Related ToThe Mudra Loan Scheme
- Loans can be availed without guarantee under this scheme.
- No processing fees are required to be paid for this.
- The loan repayment period can be extended up to five years.
- The borrower is given a Mudra card, which can be used by the business to meet the needs.
- Any person who wants to start his own business can take a loan under this scheme. With this, if one wants to expand his existing business, he can still get a loan through this scheme.
- For more information related to the scheme, click here https://mudra.org.in/