Just as the working people want their salary to increase, similarly businessmen who wish to do business want their business to be big, expand, and profits in business increase.

To make a business big, business needs to have more products in their product line. If the business belongs to the manufacturing sector, then modern machines need to be installed and some new employees may be also required to manage the business.

To fulfill all these needs, money is required as per the need of the entrepreneur. Arranging money is not a problem with big businessmen, as they take a term loan by mortgaging any of their properties. But the real issues regarding the arrangement of the funds comes with MSME businessmen in growing the business.

Given the economic difficulties of the businessmen of the MSME sector, many government schemes of business loans are being run by the Central Government. Along with this, it has also been taken care of by the government that traders do not have to arrange a lot of documents to take loans.

The Pradhan Mantri Mudra Loan Scheme is one of the loan schemes being run by the Central Government. This government scheme provides loans to expand the MSME businesses.

It is important to note that the Aadhar card is mandatory for business loans under this scheme. Along with this, for the sake of information, to increase business, up to Rs 7.5 lakh collateral-free business loan is available within 3 days* from ZipLoan.

See also  How A Small Business Loan Can Be Effectively Used?

Let us understand how to get a loan from the Aadhaar card in the Mudra loan scheme and Start-up India scheme.

Apply for Quick Business Loan

What is Mudra Loan Scheme?

Under the Pradhan Mantri Mudra Yojana, business loans of up to 10 lakh are provided to the MSME businessmen of the country in three categories without any mortgage.

Mudra loan scheme is also known as Pradhan Mantri Mudra Yojana (PMMY). The full name of the Mudra Loan Scheme is Micro Units Development Refinance Agency.

How Much Loan is Available in Mudra Loan Scheme?

Business loans of up to Rs 10 lakh are available in three categories. Mudra loans can be used to establish a new business and to expand the business already running. The loan criteria are mentioned below:

  1. Shishu Loan – Business loan up to 50 thousand
  2. Kishore Loan – Business loan from 50 thousand to 5 lakh
  3. Tarun Loan – Business loan from 5 lakh to 10 lakh

Also Read: Mudra Loan VS Business Loan: Which One Should You Choose?

Mudra Loan Eligibility

  1. Merchants applying for Mudra loan should be an Indian citizen.
  2. Mudra loan to be used for non-agricultural business.
  3. Any business for which a Mudra loan is to be taken should not be a corporate entity.
  4. The businessman should have a project ready to use the Mudra loan.
See also  How To Get Business Loan In India Faster?

Businesses Which Can Get Mudra Loan from Aadhar Card

  • Proprietorship firm
  • Partnership firm
  • Small manufacturing unit
  • Service sector company
  • Shopkeeper
  • Fruit and vegetable seller
  • Truck/car driver
  • Hotel owner
  • Repair shop
  • Machine operator
  • Small scale industries
  • Food processing unit
  • Any other village industry in rural and urban areas

Also Read: Mudra Yojana Loan Interest Rates that Entrepreneurs Can Choose

Documents Are Required to Take A Mudra Loan from Aadhaar Card

All the businesses whose business is one of the above are eligible to get a Mudra loan. When businessmen become eligible for the Mudra loan, they need to have an Aadhaar card as well as some more necessary paper documents while applying for Mudra loan.

  • 2 photos
  • Photocopy of any one of Aadhaar card, PAN card, Voter card, passport, bank passbook, driving license, etc. for an identity card. Here it has to be kept in mind that whatever identity card you are giving a photocopy of, you have to sign it yourself/ self – attestation.
  • Any government-issued certificate for address certificate is required – documents prove that you are residing at that address, some of the examples are Aadhar card, residence certificate, electricity bill, water bill, etc. This copy will also have to be self-attested.
  • Copy of bank statement – it should be at least 3 months old
  • Copy of caste certificate (if you are from a reserved caste and want to take advantage of it then you will need it)
  • Business address certificate – Business identity and address proof must be submitted with a license, registration certificate, or any other document related to your business. This is proof that you are the owner of that business.
  • Copy of bill to purchase inventory (this is applicable when Mudra loan is taken to increase business)
See also  Are Public Sector Banks Important Lenders For MSME's ?

How to Apply for Mudra Loan from Aadhar Card

To apply for a Mudra loan, one has to find the nearest bank or financial company from where the Mudra loan is obtained.

After finding out the bank or company, you have to go to that bank or company and take the form of a Mudra loan. He has to fill the form and fill it properly. After filling the form, all the necessary paper documents have to be attached and submitted to the bank or financial company.

After submitting the Mudra loan form, one has to regularly find out what is the process of your loan application. In this way, you can start your business by taking a business loan in the form of Mudra Loan.