Pradhan Mantri Mudra Yojana for Women
Mudra Yojana Scheme will aim to increase the confidence of the aspiring young person to become first generation entrepreneurs as also of existing small businesses to expand their activities. The Pradhan Mantri Mudra Yojana (PMMY) is a scheme of the Government of India launched by the Hon'ble Prime Minister on April 8, 2015 to extend affordable credit to micro and small enterprises. Loans under PM mudra loan scheme providing loans up to Rs. 10 lakh to the non-corporate, non-farm small/micro enterprises.
Types of Mudra Loan
The MUDRA loans are extended under following three categories:
Shishu: Loans up to Rs. 50,000/-
Kishore: Loans from Rs. 50,001 to Rs. 5 lakh
Tarun: Loans from Rs. 5,00,001 to Rs. 10 lakh
Features of Mudra Loan:
The maximum Mudra Loan amount Upto Rs. 10 lakh
No hidden charges
No collateral required
No guarantor/ security required
Easy online application process
Lower interest rates
Easy EMI repayment options
The processing fee is Zero for Shishu and Kishore loans
Mudra Loan Eligibility Criteria
- Individuals
- Proprietary concern
- Partnership Firm
- Private Ltd. Company
- Public Company
- Any other legal forms
The applicant should not be defaulter to any bank or financial institution and should have a satisfactory credit track record.
Document required for Mudra loan
- Valid photo identity proof
- Current address proof
- Proof of income - Latest ITR Financial Docs of Income
- Last 6 months Bank statement
- Loan application form
- Ownership proof of residence/office
- Proof of continuity of business
- Trade references
FAQs About Business Loan
What is a business loan?
A business loan is financial help for your startup business or already has a business. It is an unsecured loan, and you can get a maximum loan amount up to Rs. 50 Lakhs without any collateral in your bank account.
Who can apply for a business loan?
Business entities such as self employed individuals, proprietors, private limited companies and partnership firms involved in the business of manufacturing, trading or services can apply for Business Loan.
What are the requirements to get a business loan?
KYC documents: Any one of the following documents can be submitted
- PAN Card
- Aadhaar card
- Passport
- Driving license
- Election / Voters identification card, NREGA Job card signed by the officer of the State Government
- One Passport Size Photograph
- PAN Card - For Company/Firm/Individua
- Proof of business ownership
- Other financial documents
- Bank statement of the last 6 months
What can I use a business loan for?
You can use business loans to grow, or expand your business with a wide range. You have the option to expenses like rent, utilities, salaries, inventory, and supplies, especially when cash flow is low.
How long will Business loans be processed?
Online lenders and alternative lenders have faster processing times because they have automated systems, with minimal paperwork and faster approval processes, you might receive the loan offer within 3 to 4 working days.
Can I foreclose a Business Loan?
Yes, you can foreclose or pay off a business loan early as per the terms and conditions of the loan agreement.
Can I get a business loan on salary?
No, salaried employees cannot get a business loan as it is meant for self-employed individuals or business owners. However, salaried employees can apply for other types of loans such as personal loan, home loan, or car loan.
Who is not eligible for a business loan?
A person who is below 18 or above 80 years of age is not eligible for a business loan. The person should be a self-employed individual or a business owner.
Can I get a Rs. 50 lakh loan for business?
Yes, you can get an amount of Rs. 50 lakh without any collateral as a business loan.