Keeping inflow of credits is considered preeminent when you are starting your business. But good inflow of credits is never assured. It is not possible to keep your business growth without strong financial backing.
To overcome the same, the government of India has launched Pradhan Mantri Mudra Yojana.
It helps small businessmen who have the potential and the ability to grow but all they lack is the financial support, therefore this yojana or scheme helps in creating more and more financial support from the government to these small businessmen.
In the following article, we will be conversing how you can apply for getting a loan under Pradhan Mantri Mudra Yojana.
Types of loan under Pradhan Mantri Mudra Yojana
Loans under the scheme depend on the size of the enterprise. On the basis of the same price range may vary which is as under:
- Under the Shishu scheme, you can get a loan of up to Rs. 50,000 or equal to Rs. 50,000.
- Under the Kishor Scheme, you can get a loan of above Rs. 50,000 to Rs. 5,00,000.
- Under the Tarun scheme, the enterprise can get anywhere ranging from Rs. 5,00,000 to Rs. 10,00,000.
Q. What is the eligibility to get Mudra loan?
A. To make sure whether you are eligible for Mudra loan, you can check for the eligibility criteria here:
- An Indian Citizen
- The citizen has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector.
- Whose credit need is less than Rs10 lakhs
- Approach either a bank, MFI, or NBFC for availing of MUDRA loans under the scheme.
- The lending rates would be as per RBI guidelines.
- The terms and conditions of the lender would have to be followed for availing the loans under MUDRA.
- They should know that MUDRA will not fund directly, instead, they would fund through existing NBFCs, financial institutions, Bank, Primary Lending Institutions, etc.
- The target audience is the proprietary /partnership firms running a small manufacturing unit like shopkeepers, fruits and vegetable sellers, vendors, truck operators, food service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.
Q. What is the procedure to get Mudra loan?
A. To apply for a mudra loan, if you are eligible then, one must file an application form. Provide your details and make sure you have filled them all with utmost care and responsibility.
- Business plan- You must have a business plan and that must be towards growth and innovation both of the business and the economy.
- Proof of Identity like PAN, Aadhaar, Driving License, Passport and more.
- Residence proof like recent telephone bill, electricity bill or property tax receipt and more
- Applicant’s recent photograph which is less than six months old.
- Quotation of machinery or other items to be purchased
- Name of the supplier or details of the machinery or prices of the machinery
- Proof of the Identity and Address of Business like the tax registration, business license and more
- Proof of category like SC/OBC/Minority, if applicable
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