If you are applying for Mudra Loan you must know about the Mudra Loan documents that you have to present in the bank. The entrepreneurs find it difficult to avail of loans because they are new in the market and do not have any income proof to guarantee the success of their business plan. Here is good news for all. You can now avail yourself of the loan from banks in the form of a Mudra Loan that doesn’t require much security and solve the problem of shortage of funds with you.
The Government of India has launched the Pradhan Mantri Mudra Yojana Scheme which is PMMY to provide you assistance for developing and growing your business. The government has taken the step to provide financial aid to entrepreneurs to boost the economy of the country.
Our article below is going to provide you with complete detail about Mudra Loan and the required documents.
Mudra Loan Documents
Here are the documents required under Pradhan Mantri Mudra Yojana.
- Mudra Loan application form
- Vehicle application form for loan
- Passport-sized 2 photographs
- Photo identity Proof
- Income Proof
- Address Proof
- Last 6 months Bank Statement
- PMMY Project Report
Business Installation Loan
- Mudra Loan application Form
- Photo identity Proof
- Business establishment Proof
- Address Proof
- Bank statement for previous 6 months
- Income tax return proof of past 2 years
- Qualification Proof
- Proof of the existence of Business
- Office ownership Proof
- Trade References
- PMMY Project Report
Business Loans and Rural Business Bank Credit
- Mudra Loan bank application form
- Age proof with photo identity
- Address Proof
- Ownership Proof
- Bank statement for the last 12 months
- Income tax proof for the last 2 years
- Office establishment and existence proof
Now if you want to get the Mudra Loan, along with presenting the above listed documents, you must write an effective Mudra Loan Project report that is a sort of business loan that the bank will demand from you to give you business loan. You can contact us for our services where we can assist you to write your project report for Bank loan and provide you ready to use ideas also.
Mudra Loan Important Documents
- You need to provide the self-attested documents that are Adhaar card, Pan Card, Voter Id, Passport, Driving License or Other documents issued by the government of India.
- Photos of business partners or owners
- Proof of SC/BC/ST/OBC
- The balance sheet for the previous 2 years.
- Partner Agreement
- Sales made in the past financial year.
- Verification of technical and economical viability of Business
Features Of Mudra Loan
- Age eligibility- 18 to 65 years.
- The interest rate varies from bank to bank.
- The minimum loan amount is Rs 30,000.
- The maximum loan amount is Rs 10 Lakh.
- The processing fee is not charged.
- Loan repaying tenure is 5 years.
- The defaulters of any loan cannot avail Mudra Loan.
What Is Mudra Loan?
Mudra Loan is financial help that the government wants to provide to the entrepreneurs of India so that they can start their businesses and become self-dependent. It provides financial help for loans amount up to10 Lakh Rupees. The loan is provided by Micro Unit Development and Refinance Agencies. It can be both banks or other financial institutions. You can get a loan for Non-farming activities, trading, manufacturing and transportation.
Mudra loan is available for professionals like doctors as well. You can check the complete detail for Mudra Loan For Doctors if you are a doctor.
What is Mudra Card?
When you go to the bank to apply for Mudra Loan, you get a card from the bank. It is just like a debit card. Once you apply for a loan, you have to open an account and thereafter you get the card. This card helps you to withdraw the loan amount that is sent to your bank account after loan approval.
Mudra Loan Interest Rate
Interest rate of Mudra Loan depends on the applicant’s documents and profile. If you have a good civil score and your credit score is good, you get a loan of more amount with less interest. If your civil score is low and you don’t have any income proof, you get the loan at a higher interest rate.
The banks and financial institutions have guidelines that determine the loan amount and the interest rate. You must get to know the interest rate and loan amount from a few bank branches and then decide on the bank from which you must take a loan.
Information About Pradhan Mantri Yojana Scheme
This scheme was launched in 2015 by the Prime Minister Of India and helped small scale businesses to expand their services. The companies that are profit or non-profit can get the loan under PMMY and avail of loans from Rs 50,000 to Rs 10 Lakh. Pradhan Mantri Mudra Yojana From Hdfc Bank is really very popular because you can get the funds very easily and quickly.
The companies that can get loans under Pradhan Mantri Mudra Yojana are:
- Railway Recruitment Board
- Microfinance Institutions
- Non-Banking Companies
- Commercial Banks
- Small Finance Banks
The industries that can get loans under PMMY
- Business men
- Food Production Houses
- Small scale manufacturers
- Small Scale Traders
- Self-employed Businessmen
- Transport based companies
- Service-based companies
Mudra Loan Products
There are mainly three schemes under Mudra Loan that are Shishu, Kishore and Tarun. The Shishu loan scheme provides you with financial to upto Rs 50,000 and requires fewer documents from you. The kishore Mudra Loan scheme gives youa loloansetween Rs 50k to Rs 5 Lakh. The tarun Mudra Loan scheme provides you with loans ranging between Rs 5 Lakh To Rs 10 Lakh. Since the loan amount of the Kishore and Tarun loan schemes is more so they require more documents from you along with the ITR.
You can check out all details on whether you need ITR For Mudra Loan or not considering your loan amount.
Purpose Of Mudra Loan
- You can take Mudra Loan for several reasons that may help you create employment in your area and earn a good income for yourself. The purpose of MUDRA Loan is as follows.
- To get Business loans for retailers, shopkeepers, vendors, traders and other services.
- To arrange equipments for small scale units.
- Avail loan to maintain working capital.
- Vehicle loan for transportation of goods and people.
- People of non-farming businesses like poultry, and pisciculture can also get Mudra Loan.
- People using tractors and trucks can also get a loan for commercial purposes.
Activities Covered Under Pradhan Mantri Mudra Yojana
Here is the entire list of activities that are covered under the Mudra Loan.
- Food production sector
- Transportation sector
- Social and personal service centres
- Agriculture-related sector
- Textile products
- Equipment loans for small scale companies
Eligibility Criteria For Mudra Loan
You can get a loan from the bank under the PMMY scheme for small scale business and commercial purposes. Mudra loan provides assistance to female entrepreneurs as well to empower the women of India under Mahila Uddyami Scheme.
You can get a loan for:
- Plant and Machinery
- Working Capital Rickshaw
- Purchase of E-Richshaw, two wheelers or other vehicles.
- Remodelling of business space.
- Indians who are willing to get Mudra Laon for their new startups should check out the eligibility criteria for Mudra Loan here.
- If you have entered into the service sector, or trading and manufacturing activities you need a loan amount t approximately Rs 10 Lakh. You can thus apply for Mudra Loan because it offers loans at low-interest rates. You can take Mudra loans from public and private banks and other financial institutions as well.
As per age eligibility criteria, the applicant for Mudra Loan should be at least 18 years of age at the time of taking the loan and should not be above 65 years because it is the maximum age for Mudra Loan. Any individual who is new or old in the business sector can get a loan. The government says there is no collateral or third party security required for this loan. The documents that you need have already been read by you above.
How To Apply For Pradhan Mantri Mudra Loan Online?
- You can apply for Mudra Loan online by visiting the official website of the financial institution or bank that you are seeking a loan from. You can register for Mudra Loan by following the steps mentioned below.
- Download the loan application form from the official bank website.
- Fill in the necessary details
- Submit the form online along with the self-attested documents demanded for a loan by the bank.
- You also need to proceed with the other formalities asked by the bank.
- Your loan will get approved after the bank cross checks your details. The loan amount is later transferred to the account that you have mentioned.
- I think applying for Mudra loan online saves a lot of time and effort.
How To Apply for Mudra Loan Offline?
- You have to visit the bank branch that is nearby aa nd get the loan application form.
- Fill in the important details in the loan form. A also provides the self-attested documents that are needed by the bank.
- Your loan will be approved in a few hours after all the formalities are completed.
Advantages of Applying For Mudra Loan
There are several benefits of applying for Mudra Loan.
- To promote business in the country Mudra loan scheme is launched by the government. It is to empower your business and provide you with financial assistance so that you can earn well. After you take Mudra Loan, you can start small or micro-level business. It helps to improve overall conditions of India.
- There are a few areas in the country where business is lacking. New companies must be set up in these areas. The people from rural areas who wish to start their business get Mudra loans from banks and set their own companies. This helps in the development of these areas and the rural people do pay a high-interest to the banks.
- There is a facility of credit guarantee that is provided to the borrowers under the Mudra loan scheme. The banks provide risk free loans to borrowers. Customers get different loans for different purposes.
- Banks help to develop and promote customers business. The borrowers get the opportunity to improve their financial status and develop their skills as well.
- You can avail of loans between the range of Rs 50k to Rs 10 Lakh. One has the choice to get the loan at high or low-interest rate and on the amount of your choice.
- An entrepreneur gets Mudra Card after Mudra Loan approval from the bank. You can use it to take out the money in the time of emergency if the bank is closed.
Frequently asked questions on Mudra Loan Documents
The Mudra Loan guarantor is not supposed to submit any document except for his signatures on the loan application form and contact details.
As soon as the loan is approved by the bank, you can get the amount in your account in a day or two for small loan amount and in a fortnight for Rs 10 Lakh.
The basic documents that you need to get Mudra Loan are:
Mudra Loan application form
Vehicle application form for loan
Passport sized 2 photographs
Photo identity Proof
Last 6 months Bank Statement
If you want to get Mudra Loan for Rs 2 lakh, you have to get it under the Kishore scheme. To avail of the loan in the der Kishore scheme of Mudra Loan, you must submit the following documents.
Mudra Loan application Form
Photo identity Proof
Business establishment Proof
Bank statement of previous 6 months
Income tax return proof of past 2 years
CA Certified Financials
Proof of the existence of Business
Office ownership Proof
Mudra Loan eligibility documents are the papers that the bank demands from you when you submit the Mudra Loan application form. They can be ID proofs and income proofs. You need to submit the self attested copies of identity proofs in the bank along with 2 passport size photographs.
The documents that are required for Mudra Loan depends on the type of Mudra Loan that you want. The basic documents for Mudra yourself-attestedtested are copies of passport address proof, voter card, pan card, business establishment proof etc.
You don’t need to submit Income tax proof for the small loan amunt . You will have to submit it if the loan amount is high. For the loan amount above 1 lakh, you must present ITR for the last 2 years.
Yes submitting a paan card is mandatory because it discloses all the important details about your financials. These days Adhaar card is linked with pan card too. So the bank may or may not demand it.