Are you Looking for financial assistance for your micro or small enterprise in India ? Apply for a Mudra loan today and get hassle free Mudra Loan up to Rs. 10 lakhs to grow your business. With simple application procedures and quick approval, Mudra loans are the perfect solution for entrepreneurs looking to take their business to the next level.
Features of Mudra Loan
The following are the key features of the MUDRA loan scheme :-
- No Collateral Required :- Mudra Loans are collateral-free, which means that small business owners do not have to pledge any assets as security to obtain a loan.
- Simplified Application Process :- The application process for Mudra Loan is simple and straightforward. Small business owners can apply for the loan online or by visiting the nearest bank or financial institution.
- Quick Disbursement of Funds :- Mudra Loans are disbursed quickly, usually within 7-10 working days from the date of approval of the loan application.
- Flexible Repayment Terms :- Mudra Loans come with flexible repayment terms, with a repayment period of up to 5 years. Small business owners can choose to repay the loan in monthly, quarterly, or half-yearly installments.
- No Processing Fees :- Mudra Loans do not have any processing fees, which makes it easier and more affordable for small business owners to access credit.
Benefits of Mudra Loan
Mudra Loans offer several benefits to small business owners and entrepreneurs, including:
- Easy Accessibility :- Mudra Loans are easily accessible and can be availed from several banks, NBFCs, and other financial institutions. This makes it easier for small business owners to access credit and expand their business operations.
- Low Interest Rates :- MUDRA loans offer lower interest rates compared to other types of loans, making it more affordable for small business owners to borrow money.
- Boosts Entrepreneurship :- Mudra Loans aim to promote entrepreneurship and self-employment by providing financial assistance to small business owners and entrepreneurs. This can lead to job creation and economic growth in the long run.
- Encourages Financial Inclusion :- Mudra Loans also promote financial inclusion by extending credit facilities to those who may not have access to formal banking channels. This helps to bridge the gap between the formal and informal sectors of the economy.
Eligibility Criteria for Mudra Loan
To be eligible for a Mudra Loan, an individual or business must meet certain criteria set by the government. Here are some of the key eligibility criteria for availing a Mudra Loan :-
- Business Type :- The business must be engaged in income-generating activities such as manufacturing, trading, and service sectors.
- Business Size :- Small and Micro-enterprises are eligible to apply for Mudra Loans. The business should have a turnover of up to Rs. 5 crores and a loan requirement of up to Rs. 10 lakhs.
- Age :- The borrower should be between 18 and 65 years of age.
- Identity Proof :- The borrower should have a valid identity proof such as Aadhaar card, PAN card, voter ID or passport.
- Address Proof :- The borrower should have a valid address proof such as Aadhaar card, Passport, Utility Bill or Property Tax Receipt.
- Business registration :- The business should be registered with the relevant authorities such as GST, MSME or any other regulatory body.
- Bank Account :- The borrower should have a valid bank account in his or her name to receive the loan amount.
- Credit History :- The borrower’s credit history should be good, with no default or overdue payments.
Documents Required for Mudra Loan
To apply for a MUDRA loan, borrowers need to provide the following documents :-
- Identity Proof :- Any government-issued document such as Aadhaar Card, PAN Card, Passport or Voter ID.
- Address Proof :- Any government-issued document such as Aadhaar Card, Utility Bill, Passport or Voter ID.
- Business Registration Certificate :- For businesses that are registered with the government, the registration certificate like GST and MSME needs to be submitted.
- Bank Statement :- The applicant needs to submit a bank statement for the last six months to establish the financial position of the business.
- Business Plan :- A detailed business plan that outlines the objectives, operations and financial projections of the business is required.
- Quotations and Invoices :- If the loan is being taken to purchase machinery, equipment or raw materials, the borrower needs to provide quotations and invoices from suppliers.
