How to apply for Shishu loan under MUDRA bank?
The Pradhan Mantri MUDRA Yojana is aimed at those in the non farm sector take loans and start an entrepreneurial enterprise. Apart from this they will also regulate the lenders and the Micro Financing Institutions in India.
What are the loans that are available right now?
Even though there are three kinds of loans provided (Shishu loan, Kishor loan and Tarun loan), the MUDRA Yojana is at present is only providing the Shishu loan to the citizens of India. Also, about 60% of the loans are to be allotted to the Shishu category while only 405 will be shared among the Kishor and Tarun loans.
Under the Shishu loan, you can take up to Rs. 50,000 as loan from the government. This type of loans is especially for the micro units which are at a nascent level.
The Shishu loan application
If you think your business venture falls under the Shishu category and you ought to take a loan from the government, then you may do so by submitting an application form. The application form under the Shishu category is not available for download online. You can also visit the MUDRA Banks for getting the form through an offline process.
Advantages of the Shishu Loan
One of the advantages of this type of loan is that no collateral will be required to avail this loan. Also, no loan processing fees are attached. Also, the maximum repayment of loan can be extended up to 5 years
Role of MUDRA cards into this
The MUDRA cards will be issued either by the banks directly or by the MFIs. These cards will be issued in the form of RuPay debit cards. These cards will be very useful for your loan purposes since they can be used to withdraw cash funds from any ATM or POS machines. Also, you can make online purchases through these cards. Apart from that, they are also playing a key role here in obtaining Shishu loans.
What are the documents that will be needed to obtain these loans?
You will almost always need a proof of identity to apply for any loan under MUDRA bank. So it is advisable that you always have the valid proofs of your identity and its photocopies with you. These documents will include your passport or Aadhar card or such other things.
If you have a PAN card, then it is important to document it as well. Since you are opening a business and you need to take a loan for it, the government will ask for proofs of your business. You need to have an address proof in that case. This part is ambiguous though – you might not even need it depending upon the type of enterprise you are opening. So you must consult with your bank about this.
Keep your identity and address proofs near you while you go to avail this loan.
With just these few items, you can obtain a Shishu loan easily.