How to Set Up an Own Business with Mudra Loan? [Step by step Guide]

How to Set Up an Own Business through Mudra Loan?: How to Set Up an Own Business through Mudra Loan: We know that unemployment is increasing day by day due to coronavirus going on worldwide. In view of this, the Indian Government has announced a relief package to make the unemployed people self-reliant.

The government has asked the bank to provide the Mudra Loan easily to unemployed people as well as self -employed. Under the Mudra Loan scheme any person can take loan up to 10 Lacs to start their own business.

The objective of this project is to provide loans from street vendors to small businesses without any guarantee. In this scheme any person can take a loan up to 10 lakhs. Today I am going to tell you about this Scheme started by the Government of India and How to Set up an Own Business through Mudra Loan?

How Much Loans You Can Take Through Mudra Loan

Mudra Loan is divided into three categories and you can apply in any one of these categories according to your eligibility. Read a complete guide about How to Set up an Own Business through Mudra Loan?

The Pradhan Mantri Mudra Yojana (PMMY) was launched on 8th April, 2015 by the Prime Minister of India with the objective of “financing micro units” and providing them with easy access to credit.

Under this scheme, loans between Rs 10,000 and Rs 10 lakh can be availed of by small businesses and entrepreneurs. This article provides an overview of how much you can borrow under the Mudra Loan scheme.

If you are looking to take out a loan through the Mudra Loan program, you may be wondering how much you can borrow. The answer depends on a few factors, including the purpose of the loan and your financial situation.

Shishu Loan Under Mudra Scheme

Shishu loan is the simplest and most basic loan product under PMMY. As the name suggests, this loan is meant for small businesses which are in the initial stages of growth and development. Under this category, businesses can avail loans of up to Rs. 50,000. The main eligibility criteria for availing this loan is that the business should be registered and operational for at least 12 months. There is no upper limit on the age of the business owner.

Since Shishu loans are collateral-free, they are easier to obtain as compared to other types of loans. However, due to the small loan amount, the interest rate charged on these loans is generally higher than other types of loans.

Kishore Loan Under Mudra Scheme

Which has a range from 50 Thousand to 5 Lakhs rupees. If you come into this category, you can take a loan from 50 thousand to 5 lakhs rupees through this scheme.

The Kishore Loan is a great option for small businesses that need financial assistance to grow and expand. The loan amount can be used for a variety of purposes, such as working capital, purchase of machinery and equipment, etc. Moreover, the interest rate on the loan is very reasonable, making it an affordable option for small businesses.

If you are a small business owner looking for a loan to help you grow your business, then the Kishore Loan is definitely worth considering.

Tarun Loan Under Mudra Scheme

If you’re looking to take out a loan through the Mudra Loan scheme, you’ll need to know how much you’re eligible to borrow. The amount you can borrow through the scheme depends on the type of Mudra Loan you’re applying for.

For Tarun Loans, you can borrow up to Rs. 10 lakhs. This type of loan is meant for small businesses that are just getting started. With a Tarun Loan, you can get access to the working capital you need to get your business off the ground.

So if you’re planning to apply for a Mudra Loan, be sure to check out the different types of loans available and see how much you’re eligible to borrow. With the right loan, you can get the funding you need to start or grow your business.

Read below full article about How to Set up an Own Business through Mudra Loan?

Also: How to Download Duplicate Voter ID Card Online from NVSP?

You Can Take Loan To Expand Existing Business.

The people who will take a loan are given a Mudra Card, which the businessman can use to cover the expenditure on the need. Any Indian person who wants to set up his own business can take a loan under this scheme. Apart from this, If any person wants to expend their existing business can take a loan under this scheme.

How Much Interest Will You Pay Under Mudra Loan?

The special thing about Mudra Loan is that there is no fixed Interest rate on it. Different banks may charge interest at different rates for the loan. The rate of interest is determined by the nature of business and the risk associated with it. Generally Banks Charge 10-12 percent interest rate on loans. There is no processing fee required to pay for this scheme.

Want to start a business and want to know that How to Set up an Own Business through Mudra Loan? read the step by step guide below.

How To Apply for Mudra Loan? and How to Set Up an Own Business through Mudra Loan?

• First of all, you have to decide, which bank or financial institution you want to take a mudra loan from. You can apply to more than one bank or financial institution. You have to fill the application form and submit it to the bank with the relevant document.
• You have to submit the following document along with the application form. The number of documents may increase or decrease depending upon the loan amount, business type, bank rule, etc.
• Mudra Loan Application Form, Business Plan or Project Report, Identity-related documents like, PAN Card, Aadhar Card, Voter ID, etc. You need to also submit Partnership related documents (Deed), Tax Registration, Business Licence, etc. in case of more than one applicant.
• Residential Proof related documents, such as Telephone Bills / Electricity Bills, etc. Recent Passport Size Photograph (Not more than six months). Quotation of the Machines or Material that you want to buy for the business setup. You also need to submit details of the Supplier / Shopkeeper from where will you buy all material and machines. Category certificate (ST / SC / OBC / Minority), Balance Sheet, and Projected Balance Sheet for the last two years, if applicable (on Loan above 2 Lakhs).
• You have to submit a complete application form to the Government Bank or Other Bank or other Financial Institution which gives mudra loans. For the application, you will have to submit the complete information related to your business plan and other necessary documents.

If the application is found complete and correct, the Bank or financial institution will pass the mudra loan and the applicant will be provided by the Mudra Card.

For More Information related to Mudra Loan Click Here.

I tried to explain all the information about How to Set up an Own Business through Mudra Loan?,  If you have any queries related to Mudra Loan feel free to comment below. We will resolve your query as soon as possible. Don’t forget to share on social sites via social share below.

Conclusion

Mudra loans can be a great way to finance your business venture. However, it’s important to know how much you can borrow before you apply for one. This will help you ensure that you are able to repay the loan and avoid any financial difficulties down the road.

We hope this article has given you a better understanding of how mudra loans work and how much you can borrow through them. If you have any further questions, please don’t hesitate to reach out to us.