Mudra Loan – Business Kare Aur Paise Kaise Kamaye

Mudra Loan Yojana

"Where there is a will, there is a way." No one knows who coined this message, but it has tremendous significance in every age and situation. So, if you are looking forward to doing business and learning paise kaise kamaye, you should show an intention to work hard, and you will attain success. But, of course, you need capital to do business. So, you have the Indian Government coming to your aid through the Mudra Loan. What is the Mudra loan, and how does it work? Read on to know everything about the Mudra loan and understand paise kamane ka aasan tarika.

What is the Mudra Loan?

MUDRA is an acronym for Micro-Units Development and Refinance Agency. This financial assistance scheme is offered under the Pradhan Mantri Mudra Yojana, also known as PMMY.

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What is PMMY?

The Indian Government launched the PMMY in 2015 to help small businesses realize their potential and expand their operations to achieve success. This scheme is open to all companies from the profit and the non-profit sector. These businesses can avail of business loans up to Rs 10 lakhs depending on their eligibility.

The Mudra loan is available for small business entities engaged in the manufacturing and service sectors. Some industrial sectors that can avail the Mudra loan include business vendors, small-scale manufacturers, agriculture, food production, artisans, self-employed entrepreneurs, and other service sectors.

Different Types of Mudra Loans

Mudra loans are available in three categories.

  1. Shishu – Loans up to Rs 50000
  2. Kishor – Loans between Rs 50000 and Rs 5 lakhs
  3. Tarun – Loans between Rs 5 lakhs and Rs 10 lakhs

The Purpose of PMMY

Mudra loans are available for almost all productive business activities that enable people to do business and earn money. So, if you want to know paise kaise kamaye, start your business and go for the Mudra loan.

Here are some essential purposes for which Mudra loans are available.

  1. Equipment finance for small enterprises
  2. Working capital finance through Mudra cards
  3. Business finance for shopkeepers, vendors, traders, etc
  4. Transport vehicle operators
  5. All allied agriculture activities, including poultry, animal husbandry, bee-keeping, pisciculture, etc
  6. People using farm equipment for commercial activities

How does one apply for a Mudra Loan?

Mudra loans are available through the online and offline modes. Applicants can apply through either of these modes. The general procedure for applying for a Mudra loan is as follows.

  1. Keep all the required documents, including ID proof, address, proof, business proof, etc., ready.
  2. Approach an authorized PMMY lender and complete the application formalities.
  3. Submit the documents and get the load, depending on your eligibility levels.

Mudra Loan Eligibility

All Indian citizens having a viable business plan in any sector described above can apply for the Mudra loan. The maximum Mudra loan available is Rs 10 lakhs.

The organizations authorized to offer Mudra loans are public/private sector banks, RRBs, SFBs, and MFIs.

Here are the eligibility criteria in brief.

Minimum Age of the borrower

18 years

Maximum Age Limit

65 years

Who can avail?

New and existing business units in the manufacturing and services sectors can avail of the Mudra loan.

Collateral

No collateral is necessary for the Mudra Loan.

Who can offer the Mudra Loan?

 

  1. Public sector banks
  2. Private sector banks
  3. Regional Rural Banks
  4. Small Finance Banks
  5. Micro Finance Institutions

The Documents Required

  1. KYC documents like ID and address proof
  2. Business proof
  3. Application form
  4. Passport size photographs

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Interest Rate for the Mudra Loans

The interest rate for the Mudra loans depends on various factors.

  1. The institution offering the loan
  2. The activity for which you take the loan
  3. The business and credit profile of the applicant

Mudra Loan – Documents Necessary

The KYC documents required for applying for the Mudra loan include self-attested photocopies of any one of the following documents.

The following documents qualify as identity proof documents.

  1. Aadhar Card
  2. Voter’s ID
  3. Driving License
  4. Passport
  5. PAN Card

The following documents qualify as proof of address

  1. Utility bills
  2. Aadhar Card
  3. Voter’s ID
  4. Passport

The following documents qualify as business proof documents.

 

  1. Financials of the previous years (for existing units)
  2. GST Registration Certificate (if applicable)

The Advantages of Mudra Loan

  1. Business start-ups and established concerns are eligible for Mudra loans.
  2. The Government’s guarantee is available for the Mudra loan under the CGTMSE scheme. So, if there is a business failure and the borrower cannot repay, the banks can invoke the CGTMSE guarantee cover available on the Mudra loan.
  3. The Mudra loan is ideal for small businesses, like small-time retailers, transport operators, artisans, and other small entrepreneurs.
  4. People doing business in areas not having basic banking facilities are also eligible to apply for the Mudra loan.
  5. Women borrowers get the advantage of concessional interest rates.
  6. The Mudra loan is also available for businesses advocating ‘Atmanirbhar India’ and ‘Make in India’ campaigns.
  7. Borrowers need not offer any collateral for loans under the Mudra scheme.
  8. The borrower’s CIBIL score does not affect the Mudra loan eligibility.

Important Points to Note

  1. Existing business units should furnish their financial statements and IT returns for the past two years.
  2. The maximum loan amount in the Mudra Loan Scheme is Rs 10 lakhs.
  3. The Government does not offer any subsidies in the Mudra loan, but the loan is covered under the CGTMSE scheme.
  4. A PAN card is not mandatory for the Mudra loan, but it is advisable to have one.

Final Thoughts

Is Mudra loan a Paise kamane ka aasan tarika? The answer is a YES and a NO. It is an excellent avenue to earn money because it provides you with the necessary capital to start and run a business. It is better any day than the paise kamane wali apps that you use to earn money. However, the flip side is that you have to work hard to sustain the business and fulfill your dreams. 

So, if there is a will, the Mudra loan provides a way.

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