Documents Required to avail Loan in Mudra Loan
What is MUDRA ?
PM Narendra Modi’s new policy is focused on developing the Indian economy. Numerous schemes have been launched through this policy, for example JanDhan Yojana. It was the objective of PM, through this scheme he had launched the MUDRA. The Micro Units Development and Refinance Agency was launched on 8th April 2015. The MUDRA bank has become a new hope for people which come under the lower class and for middle class too. This initiative is to facilitate the micro units. It promises to provide such units an opportunity to develop; this can be achieved by giving them sufficient funds.
Most of the people who want to open a small business do not get to avail loans from banks. This is due to unavailability of collateral fund or due to insufficient funds to pay off interest on time. Financing small businesses to grow will eventually turn out to be very beneficial for the development of Indian economy. If the micro units get the financial support, it will show wondrous results in near future. But this MUDRA bank is yet not established as full fledged. Right now it is in its initial stages.
The documents required to be submitted along with the MUDRA loan application form are as follows.
One Proof of Identity of the applicant should be submitted, It should be self-attested. The proof of identity could be the Voter ID card Photo ID issued by Govt. authority / driving license / PAN card / Aadhar card / Passport etc.
One copy of Proof of Residence of the applicant. It can be anyone from the following. Recent telephone bill (not older than 3 months) / electricity bill (not older than 3 months) / Property tax receipt (not older than 2 months)/ Bank statement duly attested by Bank Official / Voter ID card / Aadhar card / Passport etc.
Two recent Passport size Photographs of loan applicant. Another document to be attached with application form is the Quotation of Machinery for the business or quotation of any other required items to be purchased. Apart from all this, there should be clear delta of name of supplier or details of machinery. It should also include the total amount of machinery or any items to be purchased for the business.
Applicant also needs to submit the proof of Identity or address proof of their Business Enterprise. The document to be submitted should be the copies of relevant and recent Licenses or Registration Certificates of the enterprise. It can also include any other documents which pertain for the identity of owner and also the address of company or business unit.
If the applicant belongs to minority community and wants to avail the loan under that category, then the proof of category should also be added. The proof includes the photocopy of category certificates like SC / ST / OBC / Minority etc.
Where to avail the loan?
At present, loans offered under the Mudra Yojana are being granted by 27 Public Sector Banks, 17 Private Sector Banks, 31 Regional Rural Banks, 4 Co-operative banks, 36 Microfinance Institutions and 25 Non-Banking Financial Institutions.
60 percent of these loans are offered to the applicants under the shishu category, where 20 percent is to the Kishore category and the remaining 20 percent to the Tarun category. The Shishu loan doesn’t needs any collateral security. There is no need for the loan processing fee. To repay off the amount, the time limit has been extended up to five years
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