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How to get Bank Loan under Mudra Scheme
Loan Under Mudra Scheme – In order to meet the financial needs of small and medium enterprises (Small Business / MSME) in the country, the Government of India (GOI) in April 2015 has introduced (PMMY) Prime Minister Money Scheme.
If a person wants to start his own business or wants to develop his current business, he can usually apply for a loan in the bank. But today the process of taking loans from the bank has become so complicated that most of the person cannot take loans from the bank. Keeping this in mind and promoting small scale industries, MUDRA (Micro Units Development Refinance Agency) scheme was started or we can say MUDRA Scheme has been introduced by the government.
1. Benefits of Mudra Scheme – Benefits of Mudra Yojana
- No processing fees are charged for providing loan.
- Under the mudra scheme, loans are usually granted without guarantees and Guranter.
- The repayment period of this loan can be extended up to 5 years.
- A Working Capital Loan will be grant/provided by Mudra Card.
2. Eligibility related to this Mudra scheme – Eligibility of Mudra Loan Scheme
Any Indian citizen or firm who wants to start any business other than agriculture or wants to pursue with his current business can apply for a financial help up to Rs. 10 lakhs from the Prime Minister Mudra Scheme, Under the Mudra Loan Scheme, you can apply for a loan.
3. Types of Loan Under Mudra Scheme
Under the Mudra Scheme, Mudra Loan is divided into three parts, keeping in mind the needs of different businesses. There are three types of loans under the Mudra scheme:
- Shishu Loan: Under the Shishu loan, loans up to Rs 50,000 / – are given.
- Kishor Loan: Loan between Rs.50,000 / – to Rs.5 lacs is given under Kishore Loan.
- Tarun Loan: Under Tarun loan, the amount of loan between Rs 5 lakh and to Rs 10 lakh are given.
Under the Mudra scheme, at least 60% of the loan will be given in the form of Shishu Loan.
4. Interest Rates of Mudra Bank Loan
There are no fixed interest rates under Mudra Loans. Interest rates can vary between different banks. And bank interest rates can vary depending on the risk of the applicant’s business. Generally, the interest rates of Mudra Loan are around 12% Per Annum.
Under the Mudra Loan Scheme, no subsidy is given on behalf of the government. If the applicant has applied for a subsidy under any other scheme in which the government provides capital subsidy, then that subsidy can be linked to Mudra Loan.
Procedure to get Mudra Loan – How to Apply For Loan under Mudra Scheme
1. Gathering information and choosing the right bank –
There is no fixed procedure for applying for loans under the Mudra Scheme. To getting the loan, the applicant should first contact the banks around him and gather all the information about the loan process and interest rates. To get the loan, you have to fill the application form and submit some documents along with it.
2. Preparing documents and submitting with application –
To provide loans, banks generally want to get two types of information based on your financial needs in which they can demand different types of documents: –
- Bank requires the various documents like Balance Sheet, Income Tax Returns for the last two years, and also your current business information.And make a judgement whether you have the ability to repay the loan with interest or not. Banks try to know how much risks are there in your business so that they can ensure that the money given by them will be safe.
- Banks try to know the type of work that will be done using the loan amount through your future Business Plan, Project Report, Future Income Estimates etc. and how much the benefits of business will increase due to that loan.
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Checklist for Mudra Loan (Documents Required)
Generally for the Mudra loan, you have to submit the documents along with the application form. Submitting of the various documents depends upon the amount of loan, Business Nature, Bank Rules, etc. (for example if you are taking a loan of upto 50 thousand rupees, then you may not be require Balance Sheet and Income Tax Return etc.):
List of Documents Required for the Mudra Loan
- Identity Proof – Self certified copy of Voter’s ID card / driving license / PAN card / Aadhar Card / Passport.
- Identity / Address of the Business Enterprise Copy – Copies of relevant licenses / registration certificates / other documents pertaining to the owner, identity and address of business unit
- Residence Proof– Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor / Partners.
- Proof of SC / ST / OBC / Minority
- Statement of accounts (for the last six months), from the existing banker, if any
- The applicant should not be defaulter in any Bank / Financial institution.
- Last two years, balance sheets of the units with income tax / sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above)
- Projected balance sheets for one year in case of working capital limits and for the loan in case of term loan (Applicable for all cases from Rs.2 lakhs and above).
- Sales earned during the current financial year up to the date of submission of application.
- Partnership Deed (in case of partnership firm) etc
- Project report (for the proposed project) containing technical and economic viability.
- Photos (two copies) of Proprietor / Partners
- Asset & Liability statement (In non absence of third party guarantee, from the borrower) Partners may be requested to know the net-worth.
Download Mudra Loan Application Form
For Mudra Loan, you can get the application form from the concerned bank or you can download from the website of the online bank. You can also download Mudra Loan Application Form from this link – Download Mudra Loan Application Form
3. Loan Processing
After submitting the application form with Proper Documents, the bank will check your documents and they can also request some more documents to be fully satisfied. This process can take a few days and after completing of Loan Processing, you will be given a cheque of the disbursement amount, which will be deposited in the applicant’s bank account.
Banks ensure that the amount of loan is spent only for your business or for the purpose, for which the loan has been given. For this, they take several steps, like – if the applicant has to buy any large machinery or equipment in his project, then payment should be done through cheque.
4. Rejection of loan Application
If the applicant’s documents and the industry / business project mentioned in the application is not up to the bank’s satisfaction and found any fraud, then the bank can reject the applicant’s application. If there is a small mistake in the documents and applications, then the bank guides the applicant and fixes those mistakes and approve the loan.
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How to get Mudra card
While providing loan to all applicants taking Mudra loan, Mudra cards (Rupay Debit Card) will be issued, which will be similar to the debit card. In this way, the businessman will be able to spend up to 10% of his Mudra loan with Mudra card.
The purpose of Mudra Card is to fulfill the requirements of the working capital of the businessman so that the businessman can pay daily business expenses for his business through the card and reduce the interest expenditure.
List of Institutions and Banks
Presently the loans under the Mudra scheme are being given by the following institutions:
- 31 Regional Rural Banks
- 27 public banks
- 4 cooperative banks
- 17 by private banks
- 25 non-banking financial institutions
- 36 by Micro Finance Institutions
List of all banks providing loan under the scheme of money can be checked by visiting this link – List of Institutions and Banks Offer Mudra Loan
1. Contact for the currency scheme – Mudra Scheme Helpline
If there is a problem, you can contact this website, mail and phone number –
- Mudra Yojana Website – http://www.mudra.org.in/
- Mail – firstname.lastname@example.org
- National Helpline Numbers for Pradhan Mantri Mudra Yojana – Call to 1800 180 1111, 1800 11 0001
2. If SBI does not get loan within 30 days –
- SBI has ensured that it will provide Mudra Loan to small business (SMEs) of the country within 30 days.
- If you can not get a loan within 30 days in State Bank of India (SBI Bank).
- you can email SBI Chairman with full information at email@example.com.
so, friends that is all about the Mudra Loan Scheme. Thanks for reading this article, now, its time to get benefited from this scheme. If you are a businessman and trying to increase your business, take the loan from Mudra Scheme.
Also, tell your friends and family about this scheme. If you really like this article then comment your thoughts in the comment box.
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