I Want to Open a Restaurant. How Can I Get MUDRA Loan?

Do you have a dream of starting a restaurant or a small tea shop? Getting funds might be difficult. These dreams usually come to halt due to lack of money. Money is the lifeline of a business.

With the new MUDRA scheme, you can easily meet financial requirements for starting a business. You can avail funds for starting a venture as well as expanding your business.

MUDRA scheme is designed specifically to extend affordable credit to micro units and small enterprises engaged in income generation. The loan helps set up your business, purchase equipment, fund renovations and offers finances to grow the business. 

Want to know more on Business Loan? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

I Want to Open a Restaurant. How Can I Get MUDRA Loan​

What is MUDRA Loan?

MUDRA is a scheme launched by the Government of India to improve the prospects of micro units. It offers funding to the non-corporate, non-farm sector whose credit needs are below Rs 10 lakhs. 

As per the choices available under this scheme, there are 3 products under the Mudra loan that vary according to the stages of growth of the respective businesses. As per Mudra scheme the interest rate and the loan limits are as follows:

Shishu: The maximum loan amount that can be availed is Rs 50,000 with an interest rate of 12% a year. The repayment tenure of this loan is a maximum of 5 years.

Kishore: The loan limit under this category ranges from Rs 50,000 to Rs 5 Lakhs. The rate of interest depends on the bank from which the loan is availed and the credit score of the borrower. The bank decides the repayment tenure.

Tarun: The loan amount ranges from Rs 5 Lakh to a maximum of Rs 10 Lakh. The interest rate on the loan and repayment tenure is decided by the bank; after evaluating the credit score of the applicant.

See Also: All You Need To Know About Pradhan Mantri Mudra Yojana

What are the Eligibility Criteria to Avail a Loan Under MUDRA Scheme?

MUDRA loans are generally extended to micro units and small enterprises belonging to the non-farm income-generating category. The enterprises must be in business of trading, manufacturing and services where credit needs are less than Rs 10 Lakh.

Banks sanction loans under the Pradhan Mantri MUDRA scheme as per the customer’s needs.  The loans are collateral-free and aim to bring the micro units and small enterprises under the formal financial system.

There are Some General Criteria to Avail Mudra Loan:

• The borrower must be an Indian citizen.
• The minimum age of the applicant must be 23 years.
• The minimum income of the applicant must be equal to or above Rs 17,000 a month.
• Funds borrowed must be invested in business-related activities like purchasing business vehicles, purchasing equipments or enhancing infrastructure.
• Small business owners, vegetable vendors, shopkeepers, fruit vendors and artisans are eligible for loans under this scheme.

See Also: Pradhan Mantri Mudra Yojana

List of People Eligible to Take Loans Under MUDRA Scheme:

MUDRA loan is a government-backed scheme that aims to provide easy access to funds for the non-corporate small business sector:

• Proprietors
• Partnership enterprises
• Small manufacturing units
• Service sector units
• Small and medium Shopkeepers
• Fruit or vegetable vendors
• Truck operators
• Food service units
• Repair shops
• Machine operators
• Small firms and industries
• Industries in rural and urban areas.

Get the Mudra Loan.

Documents Required:

The MUDRA loans can be availed for various purposes like a commercial vehicle loan, loan to expand the business and rural business credit loans. Each of these distinct categories of loans requires separate paperwork. Listed below are some of the basic documents that must be submitted by the borrower to get loans under the MUDRA scheme.

• Identity proof
• Proof of address
• Proof of income
• Rental agreement in case business is established over rental property
• Business registration certificate
• Income tax statement
• Bank statement of the previous 6 months
• Partnership deed or title deed.

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich.