Know complete procedure to get loan under the Mudra Yojana
There was a time in India when some people wanted to start their business and some want to expand their existing business but in the absence of the sufficient money they could not succeed in their plans. If somebody managed to receive debt from money lenders at the high rate of interest then they were unable to repay it on the time which resulted in the debt trap.
In such an environment, there was a strong need to launch such a scheme which Provide cheap & easy loan to the people.
Narendra Modi ji started the Prime Minister Mudra Yojna (PMMY) on April 8, 2015. Under the Mudra Yojna a huge loan of Rs.2.46 lakh crore disbursed to 480 mn people in the financial year 2017-18. In this article you will read how to get loan from the Mudra Yojna.
The objectives of the Pradhan Mantri Mudra Yojna are;
The prime motive of this scheme is to promote self-employment opportunities and manufacturing activities in the country. Other objectives of the Mudra Yojna include; promoting the trend of entrepreneurship among the citizens along with development of the manufacturing sector in the country.
MUDRA Yojna wants to provide funding to the non-corporate small business sector through nearest financial institutions like banks, NBFCs and MFIs etc. Mudra yojna will provide loan at low interest rates without any collateral guarantee.
How much loan is available in the Mudra Yojna?
As per the requirement of the entrepreneurs, the yojna offers three types of loans i.e.
a. Shishu: covering loans upto Rs. 50,000/-
b. Kishor: covering loans above Rs. 50,000/- to 5 lakh
c. Tarun: covering loans above Rs. 5 lakh to 10 lakh
Which institutions Provide loans;
1. All Public and Private Banks
2. Regional Rural Banks
3. Cooperative Banks
4. Small Finance Banks
5. Micro Finance Institutions (MFIs)
6. Non-Bank Financial Institutions (NBFCs)
Those who want to borrow money can borrow from any institution written above or apply through the online portal of Mudra Yojna.
Who is eligible to borrow loan from Mudra Yojna?
Any Indian Citizen who has a business plan for a non farm income generating activity such as processing, manufacturing, trading or service sector whose credit need is less than Rs. 10 lakh can approach either a Bank, NBFC or MFI for availing loans under MUDRA Yojna.
These people can borrow from the Mudra Yojna;
1. Fruits and Vegetable Sellers
2. Truck/Taxi Operators
3. Hotels/Restaurants Operators
4. Cycle/Bike/Car repairer
5. Pitcher men
6. Barber shop owners
7. People engaged in handloom / sewing industry
8. People engaged in small construction works
9. People engaged in the service sector, such as mobile recharge / photocopying shop etc.
10. People engaged in manufacturing industry like bakery
What is the Rate of Interest in the MUDRA Yojna
The rate of interest on the loan amount is not decided by the government. Interest rate depends on the lending policy of the lending institution. If low risk involved in the proposed or existing business then the rate of interest can also be lower. Generally, the rate of interest under this scheme is around 12% per year.
What is the procedure to get loan?
For loan under the MUDRA Yojna, you will have to apply in the institutions mentioned above. Before applying for a loan, you should gather all the information about the business you are planning to start or running, because if the bank manager is not satisfied with your business plan, then he/she may dismiss your application.
The manager of the institution where you have applied for loan can ask to prepare a project report to understand your business plan deeply. The manager will go through the business plan and on the basis of it he/she will decide about the rate of interest to be charged for the loan amount.
So if you want to start fresh business or extend existing plan then it is required to fill a form and mention all the information related to the fresh or existing plan.
If the bank manager approves your business plan then deposit below mentioned documents in the lending institution but be sure that the applicant should not be a defaulter in any financial institution.
Which documents are required for Mudra Loan:-
The requirement of the documents depends on your business plan. If your business plan is small and requires only loans up to Rs.50000 then lesser documents are required. If you want a loan of Rs. 10 lakh then you may have to give proof of income tax returns etc.
Required docs are;
1. Proof of Residence:– Voter’s ID card, Aadhar Card, Electricity bill, Recent telephone bill, property tax receipt (not older than 2 months), Passport of Proprietor/Partners.
2. Proof of identity:– Self certified copy of Aadhar Card/Passport, Voter’s ID card / Driving License / PAN Card.
3. Caste Certificate: Proof of SC/ST/OBC/Minority card, if applicable.
4. Proof of Identity/Address of the Business Enterprise:– Identity and address of business unit, Copies of licenses/registration certificates/other documents pertaining to the ownership.
5. Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
6. Statement of accounts (for the last six months), from the existing banker, if any.
7. Sales achieved during the current financial year up to the date of submission of application.
8. Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
9. Partnership Deed (in case of partnership firm) etc.
10. Project report (for the proposed project) containing details of technical & economic viability.
11. Photos (two copies) of Proprietor/ Partners
12. Asset & Liability statement
Mudra Yojna helpline Detail:-
If you face any problem related to the Mudra Loan then contact through;
Helpline number for the Mudra Yojna is:-1800 180 1111 and 1800 11 0001.
At the end it would be fair to say that if the Mudra Yojna continues to accelerate the growth of manufacturing / trade sector of the country with the same pace it would open a new era of entrepreneurship in the country.