How to Apply Mudra Loan at Home ?
What is Mudra Loan ?
Mudra loan is a type of financial assistance provided by the government of India to micro and small enterprises (MSEs) through various lending institutions. The full form of Mudra is “Micro Units Development and Refinance Agency”. The main objective of the MUDRA loan is to provide funding to the non-corporate small business sector.
The MUDRA loan is divided into three different categories:
1- Shishu: This category is for businesses that are just starting out and need a loan of up to INR 50,000.
2- Kishor: This category is for businesses that have been in operation for a while and need a loan of between INR 50,000 and INR 5,00,000.
3- Tarun: This category is for businesses that are established and need a loan of more than INR 5,00,000.
The MUDRA loan can be used for various purposes such as purchase of machinery, equipment, vehicles, working capital, and infrastructure. The loan can be availed by individuals, proprietorship firms, partnership firms, and companies.
The MUDRA loan scheme has been launched by the Government of India to provide support to the micro, small and medium-sized enterprises, which are considered as the backbone of Indian economy and have huge employment potential.
The interest rate for the MUDRA loan is based on the bank or NBFC lending the money and the type of category of loan. However, the rate of interest is generally lower than the rate of interest for a personal loan or unsecured business loan. The bank will check the creditworthiness of the borrower before approving the loan.
Most of user till don’t idea to get loan of mudra and search on social media how to apply mudra loan but then can not get right information so they can not apply mudra loan in meantime.
Read Also: Mudra Loan Apply
How to Apply MUDRA Loan ?
How to apply MUDRA loan, you need to follow these steps:
1- Identify a lending institution: The first step is to identify a lending institution that offers MUDRA loans, such as a bank, NBFC, or microfinance institution. You can check with your local bank branch or search online for a list of approved MUDRA loan providers.
2- Gather necessary documents: Before you apply for the loan, you will need to gather some necessary documents such as your business registration certificate, PAN card, GST registration certificate, income tax returns, and bank statement of the business.
3- Prepare a business plan: You will need to prepare a business plan for your enterprise, which should include details about the products or services you offer, your target market, your competition, and your projected financials. This will be helpful for the lending institution to understand your business, and evaluate the loan application.
4- Fill out the application form: Once you have identified a lending institution and have gathered all the necessary documents, you can fill out the application form for the MUDRA loan.
5- Submit the application: Submit your application along with all the required documents to the lending institution.
6- Wait for the loan to be approved: Once you submit your application, the lending institution will review it and check your creditworthiness. If your application is approved, you will be notified and will receive the loan amount.
It’s worth noting that the process of loan application and documentation may vary slightly depending on the lender and the type of loan applied. It is also advisable to check with the lender or go through their official website for the detailed process and documentation required. Almost people ask to bank how to apply mudra loan and apply in bank but so many banks are not responding for mudra loan if you don’t have any business.
The amount of money you can receive through a MUDRA loan depends on the category of the loan you are applying for. There are three categories of MUDRA loans: Shishu, Kishor, and Tarun. The amount of loan available under each category is as follows:
1- Shishu: The maximum loan amount under this category is INR 50,000. This loan is intended for businesses that are just starting out and need a small amount of money to get started.
2- Kishor: The maximum loan amount under this category is INR 5,00,000. This loan is intended for businesses that have been in operation for a while and need a larger loan for expansion or working capital.
3- Tarun: The maximum loan amount under this category is above INR 5,00,000. This loan is intended for established businesses that need a larger loan for expansion or working capital.
It’s worth noting that the actual loan amount you will receive may be less than the maximum loan amount based on the lending institutions risk assessment of the applicant’s creditworthiness, and the purpose of loan.
It’s important to note that the MUDRA loan is not a grant and has to be repaid with interest, therefore, it is important to have a realistic repayment plan in place before taking the loan. Also, it is important to understand the terms and conditions of the loan, as well as the fees and interest rates before applying. Now you can visit www.techmeher.com and search how to apply mudra loan then you can get the right information.
If we can get mudra loan for business then which type of business to be open ?
MUDRA loans are available for micro and small enterprises (MSEs) across a wide range of sectors. These loans are intended to provide financial assistance to the non-corporate small business sector, and are aimed at supporting business activities that create employment and income generation opportunities.
Here are a few examples of the types of businesses that may be eligible for a MUDRA loan:
- Manufacturing businesses: Small-scale manufacturing enterprises such as food processing, handicrafts, and agro-based industries.
- Service businesses: Small service enterprises such as repair shops, salons, and small-scale transportation businesses.
- Trading businesses: Small-scale trading enterprises such as retail shops, wholesalers, and distributors.
- Agriculture and allied activities: Small farmers, fishermen, dairy and poultry farmers, and other allied activities such as bee-keeping, mushroom cultivation, etc.
- Food service sector: Small restaurant, street food vendors and tiffin service providers.
- Micro-enterprises in informal sector: Street vendors, cobblers, potters, artisans, etc.
- Other: small-scale industries, khadi, village and coir industries, as well as tiny businesses, self-help groups, etc.
It’s worth noting that the specific types of businesses that are eligible for a MUDRA loan may vary depending on the lending institution, and the criteria they use to evaluate loan applications. Therefore, it is a good idea to check with the lending institution or visit the official website to see the detailed eligibility criteria.
Mudra Loan Eligibility ?
The eligibility criteria for a MUDRA loan vary depending on the lending institution and the category of loan you are applying for. However, here are some general eligibility criteria that most lending institutions follow:
- Business registration: The borrower should have a valid registration for the business that they are operating. This can include a registration certificate from the Registrar of Companies (ROC), or a certificate from the District Industries Center (DIC), or a trade license from the Municipal Corporation.
- Type of business: The business should be a micro or small enterprise (MSE) operating in the non-corporate small business sector.
- Creditworthiness: The borrower should have a good credit history and credit score. The lending institution will check the borrower’s creditworthiness by looking at their credit report and may also require additional financial statements, such as income tax returns.
- Business plan: The borrower should have a viable business plan that demonstrates the potential for growth and repayment of the loan.
- Collateral: Some lending institutions may require collateral or a guarantee to secure the loan. This can be in the form of property or any other asset.
- Age limit: The age of the borrower should be between 18 to 65 years.
- Income proof: The borrower should be able to provide income proof and should not be a defaulter of any bank.
- No outstanding loans: The borrower should not have any outstanding loans with any other financial institution.
It’s worth noting that these are general eligibility criteria, and the specific criteria may vary depending on the lending institution and the category of loan applied for. Therefore, it’s a good idea to check with the lending institution or visit their official website for the detailed eligibility criteria.
After getting the Mudra Loan how much interest rate will be pay and is it possible to pay EMI monthly basis ?
The interest rate on a MUDRA loan is determined by the lending institution, and it can vary depending on the category of loan and the creditworthiness of the borrower. Generally, the interest rate on a MUDRA loan is lower than the interest rate on a personal loan or unsecured business loan. Some lending institutions may offer fixed or floating interest rate options.
It’s also important to note that most lending institutions require repayment of MUDRA loan on monthly or quarterly basis.
It is also possible to repay the MUDRA loan on a monthly basis through Equated Monthly Installments (EMI). EMI consists of both the principal and the interest component of the loan. The exact EMI amount will depend on the loan amount, interest rate, and loan tenure. Most lending institutions have EMI calculator available on their website or can provide an estimated EMI while giving out the quote.
It’s worth noting that repayment terms and interest rates on a MUDRA loan may vary depending on the lending institution. So, it’s important to check with the lending institution for the exact repayment terms and interest rates before applying for the loan.
It is also important to have a realistic repayment plan in place before taking the loan, considering the interest rate and EMI to ensure the loan does not become a burden on the borrower.