Loans are a basic requirement for any business or startup to establish or expand their operations. Any developing nation like India requires a huge loan scheme to develop the economy faster and reach the global stage as a startup hub.
To cater to this requirement, the Government of India launched the Mudra Loan scheme to offer loans to startups and businesses at low-interest rates. The difference that the Mudra Loan scheme brings is the ease of getting the loan with no collateral and credit score.
Mudra Loan focuses on providing loans to the informal sector of the economy i.e. street vendors, small shops, etc.
These people often find it difficult to get loans from the banks and often end up either seeking personal loans or non-banking loans.
Bank of Maharashtra is a Government bank that offers Mudra Loan to the individual wanting to start their business or have a business and wants to expand their operations.
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Types of Mudra Loan
The following are the three types of Mudra Loan that you can apply for-
Shishu
In this type of Mudra loan, the loan amount will be up to Rs.50,000/-. This loan is best suited for those individuals who want to establish a street cart, roadside shop, etc.
Kishor
In this type of Mudra Loan, the loan amount that you can apply for is up to Rs.5,00,000/-. This loan is best suited for individuals with small shops or someone trying to open a small shop.
Tarun
Tarun Mudra Loan is for the individuals who are applying for the loan for more than Rs.5,00,000/- and up to Rs. 10,00,000/-
Eligibility for Mudra Loan
To apply for Mudra Loan, the individual must have eligibility decided by the bank, we have listed out all the eligibility criteria set up by the bank to offer you the Mudra Loan-
- The age of the applicant must be in between 18 years of age to 65 years of age
- Any new startups or existing business can apply for the loan
How to Apply for Mudra Loan in Bank of Maharashtra?
You can follow these steps to apply for Mudra Loan in the Bank of Maharashtra-
- Visit the nearest Bank of Maharashtra premises and ask the bank representative for the Mudra Loan application form
- After receiving the application form, fill the application form with details like name, address, loan purpose, PAN card details, the amount required, type of mudra loan, etc.
- Now, attach all the documents mentioned below and submit them to the bank representative
- The bank representative will review your application and forward it to the loan department
- Now, your application will be processed and you can be questioned for purpose of a loan or bank officials can visit your home or office for review
- After successful review, your application will be approved and you’ll receive the loan amount in your bank account
Documents Required for Mudra Loan in Bank of Maharashtra
The following are the documents required for the Mudra Loan in the Bank of Maharashtra-
- Duly filled Bank of Maharashtra Mudra application form with passport-sized photographs attached
- KYC documents of the Applicant: Voter’s ID card, Passport, Driver’s license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
- Bank Statement of the last 12 months
- Canceled cheque of your bank account
- Company establishment certificate
- Udayam Certification Number
- Proof of belonging to SC/ST, OBC, or any minority group, if applicable
- Any other document required by the bank
FAQ
The loan application for Mudra loan for processing can take up to 7-10 business days. After successful processing of the loan within 2 days loan amount will be disbursal into your account.
The maximum limit of Mudra Loan that you can apply for is Rs.10,00,000/- which is known as Tarun Mudra Loan.
Yes, you can apply for Mudra Loan with a low CIBIL score. Since the government of India has launched this scheme for people who are from the informal sector and wants to start their business, the requirement of the loan is very low.
Yes, you can apply for Mudra Loan if you’re starting a new business. The Mudra Loan is designed to provide capital funds to the new business or established business.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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