Mudra Loan up to ₹10 Lakhs: Quick and Easy Application Guide for Small Businesses and Self-Employed

Mudra Loan up to ₹10 Lakhs: Quick and Easy Application Guide is a government initiative under the Pradhan Mantri Mudra Yojana (PMMY) that helps small business owners get financial support. In this article, we will explain everything about the Mudra Loan and how you can apply for up to ₹10 lakhs in a simple and easy way. read more about Mudra Loan 10Lakhs Quick and Easy Application Guide

What is a Mudra Loan?

Mudra Loan is a special loan provided by the Government of India to help small businesses, shop owners, and self-employed people. The loan is provided through banks and other financial institutions. Mudra Loan comes in three categories:

1. Shishu Loan: Up to ₹50,000
2. Kishore Loan: ₹50,000 to ₹5 lakhs
3. Tarun Loan: ₹5 lakhs to ₹10 lakhs

This loan can be used for starting a new business or expanding an existing one. You can use it to buy machinery, raw materials, or for any other business purpose.

Who Can Apply for Mudra Loan?

If you are running a small business or planning to start one, you can apply for a Mudra Loan. Here are the types of people who can apply:

• Small business owners
• Shopkeepers
• Artisans
• Manufacturers
• Service providers (like plumbers, electricians, beauty parlors)
• Truck, taxi, or auto-rickshaw drivers
• Farmers and people working in the agricultural sector

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Benefits of Mudra Loan

1. No Collateral Needed: You don’t need to provide security or collateral to get a Mudra Loan.
2. Low-Interest Rates: Mudra Loans have lower interest rates compared to other loans.
3. Flexible Repayment: The loan repayment period is flexible, making it easier for small businesses.
4. Government Backed: Since this is a government-backed loan, there is a higher chance of approval.

How to Apply for a Mudra Loan up to ₹10 Lakhs

Getting a Mudra Loan is simple and can be done both online and offline. Follow the steps below to apply for the Mudra Loan up to ₹10 lakhs.

Step-by-Step Application Guide: for Mudra Loan up to ₹10 Lakhs

1. Prepare Your Documents:
   • Identity proof (Aadhar Card, PAN Card, Voter ID)
   • Address proof (Aadhar Card, Utility Bills)
   • Business proof (Registration, Business Plan)
   • Bank statements for the last six months
   • Two passport-size photographs
2. Choose a Bank or Financial Institution: Mudra Loans are provided by several banks, such as:
   • State Bank of India (SBI)
   • Punjab National Bank (PNB)
   • ICICI Bank
   • HDFC Bank
   • Cooperative Banks
   • Microfinance institutions
3. Fill the Application Form: Go to the bank’s branch or visit their website and ask for the Mudra Loan application form. You can also download it online from their website.
4. Submit Your Application: Attach all your documents along with the filled application form and submit them to the bank.
5. Loan Approval: Once your application is submitted, the bank will check all the documents. If everything is in order, your loan will be approved within a few days.
6. Disbursement of Loan: After approval, the loan amount will be credited to your bank account.

Mudra Loan up to ₹10 Lakhs

Types of Mudra Loan and Documents Required

Types of Mudra Loan

Mudra Loans are divided into three categories based on the loan amount:

Interest Rates and Repayment Period of Mudra Loan up to ₹10 Lakhs

The interest rates for Mudra Loans vary from bank to bank, but it usually ranges between 8% to 12% per annum. The repayment period can be as long as 3 to 5 years, giving you enough time to repay the loan without much pressure.

Documents Required for Mudra Loan up to ₹10 Lakhs

To apply for a Mudra Loan, you need to provide the following documents:

1. 1. Identity Proof: Aadhar Card, Voter ID, PAN Card
   2. Address Proof: Aadhar Card, Utility Bills (Electricity, Water)
   3. Business Proof: Registration Certificate or a detailed business plan if the business is not registered.
   4. Bank Statements: Last 6 months’ bank statements to show your financial status.
   5. Photographs: Two passport-size photos.

Eligibility Criteria for Mudra Loan up to ₹10 Lakhs

To be eligible for a Mudra Loan, you need to meet the following conditions:

• • You should be an Indian citizen.
• • You must be a small business owner or planning to start a business.
• • Your business should not be involved in farming or any illegal activities.=
• • Your credit score should be good (banks may check your credit history).

How to Improve Your Chances of Loan Approval

1. 1. Create a Detailed Business Plan: Banks will want to know how you plan to use the loan, so it’s important to have a detailed business plan.
   2. Maintain a Good Credit Score: A good credit score can improve your chances of getting a Mudra Loan.
   3. Submit All Required Documents: Ensure that all the required documents are submitted correctly.

How to Check Status of Mudra Loan up to ₹10 Lakhs

You can easily check the status of your Mudra Loan application by contacting the bank where you applied or by visiting their website. Some banks also send updates through SMS or email.

FAQs about Mudra Loan up to ₹10 Lakhs

1. 1. Can I apply for Mudra Loan online? Yes, you can apply for a Mudra Loan online through the official websites of the banks or through the Mudra Loan portal.
   2. Is there any subsidy on Mudra Loan? There is no direct subsidy on Mudra Loan, but the interest rates are lower than other types of loans.
   3. What is the maximum amount I can borrow under Mudra Loan? The maximum loan amount under the Mudra Loan is ₹10 lakhs under the Tarun category.
   4. Can a farmer apply for a Mudra Loan? No, Mudra Loans are not available for farmers. However, they can apply if they are involved in non-farming activities like dairy, poultry, or horticulture.

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Conclusion and How long for approval?

Conclusion

Mudra Loan is a great option for small business owners and entrepreneurs to get financial help to start or grow their business. With no collateral and easy application steps, you can apply for up to ₹10 lakhs and fulfill your business dreams. By following the guide above, you can make the application process quick and easy.

Remember to prepare all the required documents, choose the right bank, and ensure that you meet the eligibility criteria for a hassle-free experience.

Mudra Loan up to ₹10 Lakhs Quick and Easy Application Guide

Approval

The approval time for a Mudra Loan usually depends on the bank or financial institution processing your application. However, it generally takes 7 to 10 working days for the loan to be approved if all your documents are in order. 

Here’s a rough breakdown of the process:

1. 1. Document Submission: Once you submit your application with the required documents, the bank will start processing it.
   2. Verification: The bank will verify your documents and check your eligibility for the loan. This includes checking your credit score, business details, and financial status.
   3. Approval: If everything is correct, the loan will be approved, and you will be notified.
   4. Disbursement: After approval, the loan amount is typically credited to your bank account within a few days.

Mudra Loan up to ₹10 Lakhs To ensure a smooth and faster approval process, make sure that you submit all the necessary documents correctly and meet the eligibility criteria. Some banks may take more or less time depending on their internal processes, but on average, 1 to 2 weeks is typical.