Mudra Loan – In every country, there is a provision for the needy and those who are in need of money. It is no news anymore that various firms are giving out loans to people to save their crumbling businesses, school fees payment, house rents, and even for daily living. Among these various firms, we will be talking about one particular firm which is in Indian. And this firm is known as Mudra loan. Everyone at some point in life needs extra cash to sort out issues. And the Mudra loan firm is here to help. There are a lot of things that Mudra has put into consideration. You as an individual have to make sure you are eligible for the Mudra loan.
What Is Mudra Loan
Mudra stands for Micro-Units Development and Refinance Agency. Under this firm, borrowers can avail of business loans ranging from different amounts. Known as Mudra Yojana is a loan scheme that was put into practice by the government of India. This is to provide loan amounts for individuals to start up a new business or if you have an existing business. Additionally, you can get the loan without submitting any collateral or even security. You can apply for this loan as of 18 years at the time of loan application and the maximum age is up to 65 years at the time of loan maturity. But before applying you need to check with your preferred bank before you apply.
What Is The Process Of Collecting a Mudra Loan?
Getting the Mudra loan is easy and at the same time, there are some steps you need to follow before you can get the loan. And those procedures are highlighted below
- Two passport size photos of the applicant: to be able to get the loan you need to provide two passports of yourself. And your passport must be current and validated.
- Identification proof: another step in getting a mudra loan is providing identification proof. You need to provide your Aadhaar card, valid passport, voter ID card, valid driving license, and PAN card.
- Residential proof: you need to submit your residential proof like your utility proof, Aadhaar card, voters ID, bank passbook, and your current bank statement.
- Proof of business existence: you need to provide proof of your business existence. Also. you need to submit your business registration, certificate, license, address, proof of ownership, and any other documents that prove that you are the owner of that business.
What Are The Age Criteria For The Mudra Loan?
For you to be able to collect a loan from Mudra firm you need to have reached the minimum age of 18, which means you can only be given a loan when you are 18 years and the maximum age limit is 65 years. Loans also can be offered by non-farm- income-generating businesses in trading, producing, and services.
Who Can Borrow From Mudra Bank?
Note this, it is not everyone that can borrow from Mudra bank. Therefore, people that will be offered the loan are people who have an existing business. And they also provide proof that the business is existing. So if you have a small scall business and you want to expand your business, then Mudra loan is the sure destination for you.
What Are The Advantages Of The Mudra Loan?
There are many advantages and benefits of the mudra loan and there are highlighted below.
- There is no collateral needed to get this loan
- In event of default, the government assumes responsibility for paying off the loan
- With this loan, you can develop and expand your business
- Women who borrow this loan get better benefits due to reduces interest rates
- It is available for small scall businesses in both the rural and modern areas
- It allows you to meet up with the working capital you need for your company
Futhermore, there are so many benefits of the Mudra loan. There is microfinance, and there are so many places that need help from people. However, you can aid yourself and start up something useful with this loan. There is economic development that aims to provide for the people at the pyramid bottom with income-generating revenue.
