Once you are looking for an opening or expanding your business, you need the required financial help. To provide financial assistance, the Government of India has introduced the scheme of Pradhan Mantri Mudra Loan Yojana. Here are some facts on how you can avail of the loan.
From the previous years, start-up business has taken up a road to escalation. India happens to be the third-largest start-up in the financial ecosystem. The majority of the Indian population happens to be the young generation. With the level of education and experience, most investors are ready to put faith in them. With the help of the pradhan mantri mudra loan, it becomes easier for these entrepreneurs to acquire the needed finance for the business.
After recognizing the potential of the Indian start-up company, the Government of India announced the Pradhan Mantri Mudra Yojana. It offers loans to every small and medium business with the help of non-banking financial companies. These non-banking financial companies are known as Mudra unit development and refinance agencies.
How can you get the loan?
One can avail of the loan after fulfilling the Mudra loan eligibility criteria. We can get the loan under various Shishu mudra Yojana, Kishore Mudra Yojana, and Tarun Mudra Yojana. Also, from Shishu to Tarun, the loan amount differs in each category. Once you go to the advanced stage till Tarun Mudra Yojana, you can take up a loan up to Rs. 10 lakh.
Provision of funds
One can receive the funding via two different modes. This includes:
-
Microcredit scheme
One can get a loan of up to 1 lakh. It is provided through microfinance institutions. The entrepreneurs can get it delivered with the help of self-help groups for joint liability groups.
- Refinancing for banking financial institution and non-banking financial institution
Small finance banks, regional rural banks, non-banking financial companies, and commercial banks can lend borrowers under Pradhan Mantri Mudra Yojana. This facility is available for the term and working capital loans up to Rs. 10 lakh per unit.
Which business can benefit?
Some of the business organizations benefit a lot from this kind of loan. These organizations include:
- The purchase of transport vehicles
- Community social service activities include tailoring shops, boutiques, beauty parlours, medicine shops, and gyms.
- Various enterprises produce Jam, jelly, papad, sweets, catering, biscuit, bread, ice cream, bun, etc.
- Agriculture allied activities include apiculture, agro-industries, poultry, pisciculture, food processing, fisheries, etc.
Once you are ready to take up the loan from Bajaj Finserv, you need to fill in the application form and attach some recent passport-size photographs. For the KYC verification, you need to take up a PAN card, Aadhar card, driving license, voter ID card, utility bills including your electricity and water bills, and a birth certificate. Along with that, you should also offer some proof of belonging if you belong to any particular category like the minorities, scheduled caste, scheduled tribes, or other backward castes.
In addition to that, you have to provide a business establishment certificate and business address proof. It should be accompanied by the last six months’ bank statement and the needed documents required by the bank. These are some of the Mudra loan documents that you need to present to get the loan easily.
However, Mudra loans can be of different types, and it makes a difference in the loan limit. For instance, the Shishu loan limit is up to Rs.50,000. But, the Tarun loan amount can be up to Rs.10 lakhs. Thus, before deciding on the loan, you have to be careful about the limit. You will not get approval when your requested amount has exceeded the limit.
MSME loan documents are crucial while applying for the loan. Without the proper documents, your loan application will not receive approvals. That is why you must focus on these factors before applying for a loan. You may choose the best NBFC to obtain the loan.
