How to Get Mudra Loan : Quick Guide

In this Guide, We let you know about how to get mudra loan. If you are thinking of starting a new business and want a loan from a bank, then Mudra loan scheme will you to get a loan easily. A government of India launched a project named Micro Units Development & Refinance Agency (MUDRA) with the purpose of funding to the small business sector through various financial institutions. It is a loan providing scheme to various small enterprises, small sole proprietorship, shopkeepers and other small sector businesses through a different financial institution. You can apply for a loan up to 10 lakh rupees under Mudra schemes. Now Question is how to get mudra loan and who are eligible under, so this article will help you to understand the Mudra loan eligibility and mudra bank loan procedures.

How to Get Mudra Loan

Mudra Loan Eligibility

Any Indian citizen can apply for Mudra loan if he has a business plan for a non-farm sector income generating activity such as manufacturing, trading, processing, or service sector. You can apply for a loan up to 10 lakh rupees, and interest rates will be charged as per the RBI guidelines. So if you have a good business plan which can generate profit through manufacturing, trading, processing or service sector, then you are eligible for Mudra loan. You have to make a project report which includes your business plan, cost of production, profit generation, market research and other things of your business so you will get an easy loan.

How to Get Mudra Loan

Mudra Bank loan procedure is very easy. First, you have to decide is in which scheme you want a loan; there are three schemes available under Mudra loan schemes that is Shishu, Kishore, and Tarun. If you wish to loan up to 50 thousand rupees then you have to apply under Shishu scheme, if you want loan up to 5 lakh rupees, then you have to apply under Kishore Scheme, and if you want loan up to 10 lakh rupees, then you have to apply under Tarun schemes. After deciding your scheme you can apply for Mudra loan scheme. Every bank has their procedure but there no big differences in procedure so here procedure if mention below

  • First you have to prepare your documents, because without proper document you will not get approval of loan, so the first thing you have to do is to develop your documents, you have to prepare all the required documents and you have to make a project report for your business because it is important you have to mention all the details of your business in a project report, you have to include the cost of production, manufacturing process, profit generation and about your business and other required details in your project report, so you have to be careful during the making of project report.
  • Since every bank is not providing mudra loan, so you have to check it which bank is providing Mudra loan, then you have to approach that bank. You have to fill your application for a loan under the Mudra loan scheme.
  • After applying of Mudra loan, a bank will verify your documents, and start processing of sanctioning.
  • If everything is fine with your documents, then a bank will sanction your loan and you will get a Mudra card which can be used by you any time.

Recommend: Mudra Bank Scheme Details and Procedure

Required Documents for Mudra Loan Scheme

  • Identity Proof
  • Address proof
  • Project report of business
  • Category of person
  • Business Identification Proof
  • Bank Statement
  • Asset and Liability Statements
  • Memorandum of article/ Partnership deed
  • Photographs
  • Other required documents

Conclusion

As you can see in above article that procedure of mudra loan is very easy and simple, first you have to check your eligibility then you have to make a project report of your business, as above mentioned project report is important to document for getting loan so you have to be careful during making of your project report and you have to include all the required details of your business in your project report so it will help you to get easy loan. So if you are a small businessman and want to start your own business, then mudra loan scheme will help you get a loan from a various financial institution, as you can see above any citizen who has a good business plan and need of 10 lakh rupees can apply for this loan.