How to Apply For Loan in Pradhan Mantri Mudra Yojana

Narendra Modi’s visionary government has also launched a scheme of financial support to develop and encourage the spirit of business and employment. The name of this scheme is Mudra Yojana (Micro Units Development Refinance Agency). Through this scheme, the government has targeted to provide finance to the unorganized sector businesses and small businesses dealing with financial problems at a cheaper interest rate, as well as to encourage the youth who want to start a new business. So check How to Apply For Loan in Pradhan Mantri Mudra Yojana.
It is significant in this regard that till now a large part of the country’s population, especially the lower sections, have been deprived of the benefits of the formal banking system. They depend on moneylenders from farming to doing a small business. They have to pay huge interest on the loan taken from the moneylenders. Then he get catch in such a cycle of debt that his life becomes difficult. On the other hand, small business units of the country are also struggling with some similar problem.  These units include activities ranging from production to construction and retail. Also, about 1.25 crore people are getting direct and indirect employment from these units.

The main objective of Pradhan Mantri Mudra Loan Scheme

  • Regulation of micro finance and institutions of finance and strengthening its active participation and strengthening it.
  • To assist in finance and credit activities to micro-financial institutions, including other agencies which provide loans to small traders, shopkeepers, self-help groups etc.
  • To register all the existing micro financial institutions (MFIs) and to make a list of its superiority based on its performance.
  • From this list, the records of the institution can be assessed and the borrowers will be able to choose the best MFI. On the other hand, competition among the institutions will increase due to the formation of a superiority list, which will motivate them all to perform better. Eventually, the borrowers will get the benefit of this.
  • Which help the business to overcome the crisis. Also, in the event of default, the currency bank will cooperate in determining the procedure to be followed for the recovery of money.
  • Mudra Bank will form a Credit Guarantee Scheme to guarantee loans to small business units.
    Mudra Bank will provide effective technology to lending institutions, which can help in the process of borrowing and lending.
  • The Mudra Bank will create a suitable framework from which an effective system can be developed to provide small loans to business units.

How to get loans under Mudra Yojana?

If any Indian citizen wants to avail the benefit under the Mudra Loan Scheme, then he has to follow the following procedures.

  • First of all, a person desirous of getting a loan will have to go to a nearby bank and contact the bank for Pradhan Mantri Mudra Yojana and get the plan form from them.
  • Then fill in the loan application form along with the documents sought and a detailed description of the business you are doing or any new business you want to start.
  • After this all the formalities prescribed by the bank have to be completed.
  • After completing all the formalities, your loan will be approved and made available to you.

Documents required to get a Prime Minister’s Loan.

Pradhan Mantri Mudra Yojana will have to submit the following documents along with his application –

  • PAN card, Aadhaar card, driving license, voter ID card, self-attested copy of one of the passports for identification.
  • Voter ID card, Aadhar card, one of passport or self-attested copy of telephone or electricity bill for residence proof.
  • If the applicant is from SC / ST or Backward Class then self-attested copy of his certificate.
  • Copy of license, registration certificate, ownership identity etc. documents related to business unit.
  • It is also necessary for the applicant to not be a defaulter of any bank or financial institution.
  • If the applicant applies for a loan of 2 lakh and above, then he has to submit his last 2 years income tax return and a copy of the balance sheet. It is not mandatory for the loan of the infant.
  • If the applicant wants to start a new business on a large scale or wants to expand his existing business, then he has to submit the project report related to the business. From this report, technical and economic aspects of the business can be investigated.
  • The applicant will also have to submit the details of sales and profit-loss made by his unit during the current financial year.
  • If the applicant is a company or partnership firm, then a copy of the Deed or Memorandum will have to be submitted.
  • The applicant will have to attach his / her 2 photographs along with the application.

Provision of loan / loan under Mudra scheme

Under the Mudra Loan Scheme, the borrowers are classified into three classes. The basis of this classification is the different stages of the business – in the first phase, those who start the business, in the second phase, in the middle of the situation, to seek financial finance in order to provide financial strength to the business, and in the third phase, those who do business Looking for more capital to increase. To meet the needs of these three classes, Mudra Bank has divided the loan into the following three categories –

  • Shishu Loan: Under this, loans up to 50 thousand rupees have been kept.
  • Kishore Loan: Under this, loans ranging from 50 thousand to 5 lakh rupees have been kept.
  • Tarun Loan: Under this, loans ranging from 5 lakh to 10 lakh rupees have been fixed.

Almost all types of business units, professionals and service sectors have included to avail benefits under Mudra Loan Scheme.

SBI Bank Gives Mudra Loans Details 

State Bank of India (SBI) is the largest bank in India. This bank is now offering Mudra loans. Recently, SBI has given Shishu loans to women running around 80 small industries in West Bengal. You should also go to the nearest SBI and get information about this scheme. Taking a loan from SBI is considered to be the toughest because they give loan only after thorough investigation. So do not forget to take all your documents with you before going to SBI.

 

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