Mudra Loan: Get Loan up to Rs 10 lakh; Check Important Documents Required & Complete Application process

If you have a business plan but don’t have money or guarantor, then don’t worry as Pradhan Mantri Mudra Loan Scheme is there to solve all your problems. Under this scheme, you can get a loan up to Rs 10 lakh under Shishu, Kishore & Tarun scheme.

Also Read: Top 7 banks providing easy loans to farmers

Shishu loan

If you are starting your business & looking for a financial help, then you can take maximum loan of Rs 50,000 under Shishu Loan. It has an interest rate of 10% to 12% p.a. with repayment tenure of 5 years.

Kishore loan 

If you have started the business but not yet established then you can take loan between Rs 50,000 to Rs 5 lakh under Kishore Loan. The rate of interest varies depending on lending institution. The credit record of applicant along with business plan plays an important role in deciding the interest rate. The loan repayment tenure is decided by bank.

Tarun Loan

This loan is for those who have established their business and need funds for expansion & purchase of property, in which the loan amount is between Rs 5 lakhs to Rs 10 lakhs. The interest rate & repayment tenure are based on plan and credit record of applicant. 

Features of Mudra Loan

• Interest Rate:  Different from bank to bank

• Guarantee/Safety:  Not Required

• Minimum Loan Amount: Not fixed

• Maximum Loan Amount: Up to Rs 10 lakhs

• Repayment Term: 3 years to 5 years

• Processing Fee: Nil

• Types of Mudras Yojana: Shishu, Kishore & Tarun

• Benefits of Mudra Yojana: It can be availed by businesses, SMEs, MSMEs, businesses engaged in manufacturing, trade & service sectors.

Mudra Yojana can be availed for these purposes

• Purchase of commercial vehicles such as tractors, auto-rickshaws, taxis, trolleys, tillers, goods transport vehicles, 3-wheelers, e-rickshaws, etc.

• Starting a business of Salon, Gym, Tailoring Shops, Medicine Shops, Repair Shops, Dry Cleaning & Photocopy Shops etc.

• Activities in Food & Textile Manufacturing Sector and other activities in related sector.

• Establishment of shops, service enterprises, trade & business activities and non-farm income generating activities.

• Equipment finance scheme for small businesses: Maximum up to Rs 10 lakh.

• Agri-clinics & agribusiness centers, food & Agro-processing units, activities related to occupations such as poultry, fish farming, beekeeping, sorting, livestock-rearing, grading, Agro-industry, diary, fisheries, etc. 

Documents Required for Mudra Loan

• Business plan.

• Application Form.

• Passport size photographs of applicant & co-applicant, if applicable.

• KYC documents of applicant & co-applicants.

• Proof of Identity (Aadhaar Card / Voter ID / Passport / Driving License, etc.)

• Proof of Residence (Aadhaar Card / Voter ID Card / Passport / Telephone Bill / Bank Details, etc.)

• Income proof, such as ITR, sales tax return, license, registration, etc.

• Proof of particular category, such as SC, ST, OBC, minority, etc. (if applicable)

• Business address & tenure proof, if applicable.

• Registration, license or certificate (if any) 

But in spite of all this, the reality in getting these loans from banks especially in villages & towns is very difficult. These Mudra loans are not available easily. Banks often hesitate to give Mudra loans. If you face problem in getting  loans then register your complaints at the below given numbers:

 Source – Bank Websites