Our country is known for entrepreneurs coming from all walks of life. From a small scale farmer to a kirana owner, the range of entrepreneurs are proving to the world their management skills and administration. As we rise back from the economic downfall, there comes a requirement for loans for various purposes. One such amazing opportunity, should you need financial assistance, is the MUDRA Loan, under the Pradhan Mantri Yojana scheme, a government led initiative. The best part is one can even opt for an e MUDRA loan through their Aadhaar Card and a fairly simple process. Read on to understand it better
What is the Mudra Loan?
MUDRA was set up along with the Pradhan Mantri Mudra Yojana scheme, which was launched by the Indian government on 8th April, 2015. MUDRA Loan’s primary objective is developing the micro enterprise sector in the country by extending financial support in the form of refinance, and aiding the sector’s growth in other forms too.
MUDRA is abbreviated as Micro Units Development and Refine Agency. It monitors and records the financial institutions providing financial support to companies from the profit and non-profit sectors. Any eligible enterprise or individual can get loans of upto Rs. 10 lakhs.
Loan Availability under the MUDRA Loan Scheme?
The MUDRA Loan amount one can apply for can go upto Rs. 10 Lakhs. The amount can be used by businesses to refinance, expand their operations, to push working capital requirements or even set up new businesses. Based on the loan amount, the scheme is divided into 3 categories:
- Shishu Loan – Loan for business up to Rs. 50,000
- Kishore Loan – Loan for business ranging from Rs. 50,000 to 5 Lakhs
- Tarun Loan – Loan for business ranging from Rs. 5 Lakhs to 10 Lakhs
Taking Loan from Aadhaar Card:
An Aadhaar Card is one of the most important and basic requirements for taking a loan through this scheme and comes in as a proof for different criteria. Apart from the Aadhaar Card there are some requirements. Read along to understand better and apply for it. At the moment of reaching out, the lender can ask for additional documents depending on the purpose of the loan.
Other requirements include
- Photo of the borrower of the MUDRA Loan
- Proof of Address
- Proof of Business, for verification purposes
- Bank statement (for at least 3 months)
- Copy of Purchase Bills (in case you are looking for loans to expand business)
The Aadhaar Card also becomes the primary proof document when you try to apply for the E MUDRA loan too. The flexibility the scheme offers in terms of the process is commendable. The borrowers can apply via the financial institutions’ online portal for an E MUDRA Loan or can also go through the process offline.
In a Nutshell
The number of Micro Enterprises in our country keeps increasing exponentially with time. An aid like the MUDRA Loan can be the right opportunity to kick-start your business journey, or to expand and explore the domain for an existing business. Head over to Finserv MARKETS to deep dive into understanding the scheme and applying for MUDRA Loan.
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