You can get a loan of up to Rs.10 lakh.. Do you know about this crazy scheme of the central government?

Let's have a detailed look at the benefits of Mudra Loan Scheme and who can apply for it. The central government is implementing various schemes to help the poor and middle class people. Pradham Mantri Mudra Yojana is a scheme launched to provide financial support to those who want to start a business. prime minister Modi launched this scheme on april 8, 2015. Let's have a detailed look at the benefits of this plan.

Mudra loan

Under this scheme you can get a loan of up to Rs.10 lakh. The scheme was launched with the aim of making common people entrepreneurs and helping small businessmen. Total 3 types of loans are provided under this scheme. According to this, loans are given up to Rs.50,000 under the category of Chishu, between Rs.50,000 to Rs.5 lakh under the category of kishore and between Rs.5 lakh to Rs.10 lakh under the category of Tarun. These loans are to be repaid within 3 or 5 years after availing. Loans are generally not given without any collateral. But no guarantee is required in this scheme. It is sufficient to provide general information along with the documents. Banks may ask for details of your business plan statement and future income projections.

How to apply?

Commercial banks, rural banks, cooperative banks and non-banking financial institutions also offer Mudra loans. Mudra loan applications are available at these banks. Those who want to take loan should get those applications and fill the application along with details like identity proof, location proof, proof of purchase of machinery and other equipment, photograph, location of factory etc. Banks will provide loans within a month of verifying your applications.

Applicants can avail Mudra loan with minimum 18 years and maximum 65 years of loan repayment with any financial institution. And good repayment history. Mudra loan can be availed by individuals, self-employed, business owners, women entrepreneurs, MSMEs and other business enterprises engaged in services, trading and manufacturing sectors.

Who can apply for Mudra loans?

Individuals, start-ups, business owners, entrepreneurs and small enterprises, traders, artisans, shopkeepers, vendors, small manufacturers, retailers and other business establishments engaged only in trade, services and manufacturing sectors, women entrepreneurs, as well as belonging to SC/ST/OBC category. can apply for these Mudra loans.

Necessary documents

Duly filled application form with recent passport data-size photographs

Applicant's KYC documents like Passport, Aadhaar Card, PAN Card, Voter ID Card, Driving License, Birth Certificate, Utility Bills (Water and Electricity)

Proof of belonging to special categories like SC/ST/OBC/Minorities.

Business address proof

Last 6 months bank statement

Any other document required by Bank/NBFC