If you want to start your business and there is a lack of money in this, then through Prime Minister Mudra Loan, you can make your dream of business come true.
Pradhan Mantri Mudra Loan Scheme was launched in the year 2015. Under this scheme people of the country are being provided a loan of up to 10 lakh rupees to start their own small business. Under this, three types of loans are offered, namely Shishu, Kishore and Tarun. Banks or loan institutions are not required to make any guarantee or mortgage to avail the Mudra Loan Scheme. The repayment of Mudra loan ranges from 3 years to 5 years with EMI options.
Types of Mudra Loans
Shishu Loan: Under this loan, loans are given to those people who are just starting their business and are looking for financial help. Under this, a loan of maximum 50 thousand rupees is given.
Kishore Loan: This loan is for those whose business has started, but has not been established. Under this, the loan amount given is between 50 thousand to 5 lakh rupees.. The loan repayment period is decided by the bank.
Tarun Loan: It is for those who have established business and need money to increase and purchase property. In this, the loan amount is between 5 lakh and 10 lakh rupees. The rate of interest and the repayment period are based on the credit record of the plan and the applicant.
Objective of Prime Minister’s Scheme
Commercial Vehicles: To provide loans for the purchase of commercial vehicles such as tractors, auto-rickshaws, taxis, trolleys, freight transport vehicles, 3-wheelers, e-rickshaws etc.
Services Sector Activities: To start business of salons, gyms, tailoring shops, medicine shops, small shops including dry cleaning etc.
Business activities for traders and shopkeepers: For setting up shops, service enterprises, trade, business activities and non-agricultural income generating activities.
Activities related to agriculture and animal husbandry: Agri-clinics and agribusiness centers, food and agro-processing units, for activities related to poultry, fisheries, bee keeping, livestock farming, grading, dairy, fisheries etc.
Benefits of Mudra Loans
Mudra loans are mainly applied to the shopkeepers, traders, vendors and MSMEs in the activities of manufacturing, trading and service sector. The Mudra scheme comes under the credit guarantee schemes of the Government of India. The loan amount can also be used as term loan and overdraft facilities. All non-agricultural enterprises ie small businesses engaged in income generating activities can avail of Mudra Loans. The benefit of Mudra scheme can be availed through Mudra card.
Necessary documents for Mudra loan
Business plan, application form, passport size photographs of applicant and co-applicant, KYC documents of applicant and co-applicants, proof of identity (Aadhaar card / voter identity card / passport / driving license), proof of residence (Aadhaar card / Voter ID card / passport / telephone bill / bank statement), income proof (ITR, sales tax return, license, registration etc.), proof of a particular category like SC, ST, OBC, minority (if applicable), business. Address and tenure proof, registration, license or certificate (if any
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