How to Apply For Mudra Loan?
Types of MUDRA Loans:
- Shishu: Loans up to ₹50,000 for micro-enterprises at an initial stage.
- Kishor: Loans from ₹50,000 to ₹5 lakhs for businesses looking to expand.
- Tarun: Loans from ₹5 lakhs to ₹10 lakhs for established enterprises seeking further growth.
Eligibility for MUDRA Loans:
To be eligible for a MUDRA loan, your business must be a non-farm micro or small enterprise engaged in manufacturing, trading, or services. Additionally, you cannot be a defaulter with any bank or financial institution.
Required Documents:
The specific documents required may vary depending on the lender and loan category. However, some common documents include:
- Identity proof (Aadhaar card, PAN card, Voter ID, etc.)
- Residence proof (utility bills, rent agreement, etc.)
- Business registration documents (if required)
- Proof of business activity (invoices, purchase receipts, etc.)
- Bank statements (for established businesses)
- Category proof (SC/ST/OBC certificate, if required)
Applying for a MUDRA Loan:
There are two ways to apply for a MUDRA loan:
1. Online Application:
- Visit the UdyamMitra portal – a government initiative specifically for micro, small, and medium enterprises (MSMEs).
- Register on the portal and fill out the online application form for a MUDRA loan.
- Upload the required documents.
- Submit your application and wait for the lender’s response.
2. Offline Application:
- Visit your nearest bank (Like SBI, PNB, Axis), NBFC, MFI, or other MUDRA lending institutions.
- Obtain a MUDRA loan application form.
- Fill out the form and gather the required documents.
- Submit the completed application form and documents to the chosen lender.
- A loan officer will contact you to discuss your application and next steps.
Interest rates for MUDRA loans are set by individual lenders, so it’s wise to compare rates before finalizing your choice. MUDRA loans are typically collateral-free, making them more accessible for small businesses. Repayment tenure is determined by the lending institution, so be sure to understand the repayment terms before signing the loan agreement.
Note: A well-defined plan outlining your business goals, financial projections, and use of loan funds will strengthen your application.A healthy credit history increases your chances of loan approval and potentially secures a lower interest rate. Don’t settle for the first offer you receive. Get quotes from multiple lenders to compare interest rates and terms before making a decision.