What is Mudra Loan? Objects, Benefits, Eligibility of Mudra Loan

Let us tell you that a budget of Rs 3 lakh crore was prepared by the Central Government for Mudra loan, out of which loans worth Rs 1.75 lakh crore have been distributed so far. Those who want to take a loan under Mudra Yojana 2023 will not have to pay any processing charges to take the loan. Under this scheme, the loan repayment period has been extended by 5 years. The people of the country are given a Mudra card to take Mudra loan under this Prime Minister Mudra Loan Scheme.

Benefits of Mudra Loan:

Following benefits are available under Pradhan Mantri Mudra Yojana:

Very few documents are required for Mudra loan.

Eligibility for PM Mudra Loan is basic.

Mudra Yojana helps businessmen to expand their business.

Through the scheme, businessmen can take a business loan of up to Rs 10 lakh without mortgage of property.

Once Mudra loan is approved, no processing fee of any kind has to be paid.

Businessmen can use the business loan available under the Mudra Loan Scheme as per their convenience to meet the essential needs of their business.

Under the scheme, there is no need to mortgage property against business loan.

Mudra loan eligibility is very basic.

Objective of Prime Minister Mudra Loan Scheme:

The main objective of PM Mudra Loan Scheme is to create maximum self-employment in the country. There is a plan to strengthen all the businessmen of MSME category who are facing financial problems in running their business through Mudra Loan .

Mudra Loan Eligibility:

The eligibility criteria for taking Prime Minister Mudra Loan are as follows:

  • Must be an Indian citizen.
  • Do you want to do any business other than farming or want to expand the business you are already running?
  • To start a business and to expand the business, an amount of up to Rs 10 lakh is required.
  • Not a corporate entity.
  • All industries in the Micro, Small and Medium Enterprises (MSME) sector are eligible for Mudra Yojana.
  • Money has to be taken for business needs.

How should one prepare before taking Mudra Loan?

Before taking Mudra Loan, it is mandatory to make the following preparations:

  • making a business plan
  • Choosing a Bank for Mudra Loan
  • Fulfilling Mudra Loan Eligibility
  • collect all necessary documents
  • Applying for Mudra Loan
  • Completing preparations to utilize the amount received as Mudra loan.

Types of Mudra Loan:

These are of three types – Tarun, Kishor, and Shishu.

Shishu: Loan up to Rs 50,000 is given under this scheme.

Kishore: Under this scheme, loans of more than Rs 50,000 and less than Rs 5 lakh are given.

Tarun: Under this scheme, loans of more than Rs 5 lakh and less than Rs 10 lakh are given.

These schemes are designed to help meet the needs of different business activities and sectors as well as entrepreneurs/business segments.

How to apply for Mudra Loan:

First of all, prepare and keep all the necessary documents. Mainly you will need documents like identity proof, address proof, and business proof.

After that, go to the nominated bank or loan company under this Mudra Yojana and fill the application form.

Finally submit all the required documents.

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