MUDRA loan is entirely government administered and is a safe and a secure form of taking credit. The borrower must have a genuine business plan to get the MUDRA Loan. The loan is issued via MUDRA Credit card that has a pre-assigned credit limit the loan repayment term is as high as 7 years. Mudra loan cannot be taken for personal requirements, buying personal cars or bike, for education purposes or if you have a high turnover business.
There are three products under MUDRA. They are:
The MUDRA loans require no collateral and hence if you have a good credit history, the loan will be sanctioned at the earliest. The loan can be availed for funding commercial vehicle, to meet the working capital requirement, to buy plant and machinery or to renovate offices.
While submitting the application form, you will be required to submit the following documents:
There are three products under MUDRA. They are:
- Shishu which covers loans up to Rs.50,000.
- Kishore that covers loans above Rs.50,000 and up to Rs.5 lakh.
- Tarun that covers loans above Rs.5 lakh and up to Rs.10 lakh.
The MUDRA loans require no collateral and hence if you have a good credit history, the loan will be sanctioned at the earliest. The loan can be availed for funding commercial vehicle, to meet the working capital requirement, to buy plant and machinery or to renovate offices.
While submitting the application form, you will be required to submit the following documents:
- Self-attested Identity proof. This can include your voter ID, PAN card, driving license, passport, Aadhar card or any other photo ID that is issued by the government.
- Residential proof it can be electricity bill, recent telephone bill, property tax receipt, Aadhar card, Voter ID Card, duly attested bank statement, etc.
- 2 passport sized photographs.
- Quotation of machinery and other items that you intend on purchasing.
- Detail of machinery, supplier’s name, price or machinery or items that is to be purchased.
- Identity proof of business.
- Address proof of business it can be licences, registration documents etc.
- If you belong to the SC, ST, OBC or a minority category, then the proof of the same must be submitted.