Dear friends if you want to start a new business there is almost one has a question mark about loans?
To start and run a business you need the money and you have to arrange that money, from somewhere unless you are wealthy.
Young Entrepreneur who wants to start any business generally doesn’t have any collateral security to give to the bank so that he can get the required loan amount from them.
Even if you see growth opportunities in your business, but unable to expand due to money problems you can get bank loans easily.
In today’s post, we will see about Mudra loan.
Mudra loan is a government scheme in which you can get a bank loan as low as below Rupees 50,000 or as high as Rupees 10 lakhs for your business.
This Mudra loan scheme is divided into three types of loans:-
The first one is Shishu scheme.
The second one is Kishore scheme.
And the third one is Tarun scheme.
Don’t get surprised by the above names, these are related to starting a business and growing it.
When you start a new business Shishu stage, it means that you are just starting out and you need loan amount accordingly.
the second one is the Kishore scheme, which you can take as your business grows to the next step.
the third one is the Tarun scheme which shows your business is growing very fast and you need much more money to run your business.
The first scheme that is the Shishu scheme, can give you a loan up to rupees 50,000.
If you want a loan for your business up to rupees 50,000, you can simply go to any bank in India and ask the bank manager about the Shishu Mudra loan and say them that you are eligible for the Shishu scheme.
The second one is the Kishore mudra loan scheme, under which you can get a loan from rupees 50,000 to Rupees 5 lakhs as per your requirement.
When your business grows fast or you want to start a business that requires investment more than rupees 5 lakhs but up to rupees 10 lakhs, you can go for the Tarun Mudra loan scheme.
By taking the above loans easily, you can easily start your new business.
you can grow your existing business to new heights also.
Requirements to get mudra loan
To apply for Mudra loan with any bank in India, you have to submit a project report of your business.
Your project report should be easily convincing bank about profitability, and your ability to repay the loan with interest to the bank.
You may also apply for a term loan under this scheme for your business needs.
A term loan is required when you want to buy a piece of new machinery for your business.
you can use a term loan to buy a fixed asset for your business like land, furniture, machinery, etc.
You will get 5 to 7 years of time to repay this loan with interest to the bank.
You can also get a loan for working capital which is the money that you need to bye raw material, including products that you sell for your business.
For example, if you want to start a clothing business you will need money to invest in fixed assets like shop, furniture, and you will need working capital money to buy hosiery products from the wholesale market.
You can take a loan for both of your requirements if you need money to invest in the fixed asset for your business, you have the option of getting term loan for 5 to 7 years repayment time.
And you can also get working capital needs of your business, which is initially given to you for 12 months time, if your performance is satisfactory and you are paying the loan as per the schedule of the bank, you can get more loan next year for your working capital.
Mudra loan online application process
to Apply for this loan you need your KYC documents.
Project report of your business, which includes everything from start to finish.
like from where you are buying your raw material or products, what is your purchase price, what is your selling price, and how your business is profitable.
Bank wants to know how you will operate your business once they give you a loan.
You must convince them about your business that it is a profitable model.
To make a good project report for your business, you should take your time to study and research your market, the product, only after that, you should make a project report and apply it to the bank.
Banks are ready to give Mudra loans to any business, which can repay loans satisfactorily over time.
Mudra loans have a unique benefit of no Collateral security and no guarantor is required to apply for this loan.
Mudra loan for business needs is aimed at our youth who want to start a business of their own and who don’t have any collateral property which they can show to the bank.
With all the above information, you can easily contact any bank and ask for Mudra loan details.
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