Empowering Your Business Dreams with
Mudra Yojana
Empowering Your Business Dreams with
Mudra Yojana
About Mudra Yojana
The MUDRA Yojana was launched on 8th April 2015 with the aim to facilitate easy collateral-free micro credit of up to ₹10 lakh to non-corporate, non-farm small and micro entrepreneurs for income generating activities. The loans provide funding to the non-corporate, non-farm sector income generating activities of micro and small enterprises whose credit needs are below ₹10 Lakh.
Types Of Mudra Loan
Mudra Yojana Objectives & Benefits
Below the following are the benefits of enrolling in the Mudra Yojana.
- Financial Inclusion: Mudra Loans promote financial inclusion by providing credit facilities to small businesses and entrepreneurs who often lack access to formal banking services. Mudra aims to bring financially marginalized individuals and enterprises into the formal financial system, promoting financial inclusion
- Skill Development: The scheme encourages skill development and entrepreneurship development through various training and capacity-building programs .
- Collateral-Free Loans: Generally, Mudra Loans are collateral-free, The loans do not require any kind of security or collateral, making them more accessible to small borrowers.
- Flexible Repayment Period: Loans are available across different categories (Shishu, Kishore, Tarun) catering to the diverse financial needs of micro and small businesses. The repayment period can range from 12 months to 5 years, with a possible extension of 5 more years if needed
- Low Interest Rates: Interest rates on Mudra Loans are competitive, helping borrowers manage their business finances effectively. Interest is charged only on the withdrawn and utilized amount, not on the entire sanctioned loan amount, helping in cost savings
- Supports Employment Generation: By facilitating the growth of small businesses, Mudra Loans contribute to job creation and economic development at the grassroots level.
- Boosts Entrepreneurship: Mudra Loans encourage entrepreneurship and the establishment of micro-enterprises, fostering innovation and economic empowerment.
Mudra Yojana Eligibility Criteria
Candidates willing to apply for the Mudra Yojana should meet the following eligibility criteria :
- Individuals: Any individual seeking to start or expand a micro or small business is eligible to apply for a Mudra loan.
- Proprietary Concerns: Sole proprietors or individuals running their businesses as sole proprietors are eligible for Mudra loans.
- Partnership Firms: Partnership firms engaged in non-farm income-generating activities are eligible for availing Mudra loans.
- Private Ltd. Companies: Private limited companies involved in small-scale business activities are eligible for Mudra loans.
- Public Companies: Public limited companies engaged in micro and small business activities as per the Mudra Yojana’s guidelines can apply for Mudra loans.
- Other Legal Entities: Other legal entities such as Limited Liability Partnerships (LLPs) and other forms of legally recognized entities involved in micro and small enterprises are eligible for Mudra loans.
The specific eligibility criteria may vary depending on the category of loan applied for, such as Shishu, Kishore, or Tarun.
Mudra Yojana Documents Required
The following documents are required to apply for the Mudra Yojana
- Identity Proof: Any valid government-issued photo identification such as Aadhar card, passport, voter ID, or PAN card.
- Address Proof: Documents like Aadhar card, utility bills, rent agreement, or any other government-issued address proof.
- Business Plan: A detailed business plan outlining the nature of the business, the amount of loan required, and the purpose for which the loan is being sought.
- Proof of Business Existence: For existing businesses, documents such as business registration certificate, GST registration, trade license, or any other relevant registration documents.
- Proof of Category: The applicant should provide documentation to prove the category of loan they are applying for, whether it’s Shishu, Kishore, or Tarun.
- Quotation of Items to be Purchased/Details of Machinery or Equipment: If the loan is for the purchase of equipment or machinery, quotations of the items to be purchased should be provided.
- Financial Documents: This may include income tax returns, balance sheets, profit and loss statements, and other financial details as required by the lending institution.
- Asset and Liability Statement: A statement detailing the assets and liabilities of the business or the individual applying for the loan.
- Any Other Documents: Any additional documents as required by the lending institution based on their specific policies and requirements.
How It Works
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How We Can Help You:
As an individual seeking a Mudra Loan, we can assist you by providing guidance on the application process, required documentation, and tips for preparing a strong business plan. We can also offer insights into the eligibility criteria and assist in connecting you with potential lenders.
