In fact, the government is financing to micro, small, and medium-sized businesses at low interest rates under the Prime Minister's Mudra Loan Yojana. The Central Government introduced the initiative in 2015. Its goal is to make financing available to small enterprises.
During the coronavirus, the youth are always concerned with finding work. Even if you have a great concept, it takes a lot of money to start a firm, therefore if you get into private debt, your profit will be adequate to cover the interest. However, the Modi government has devised a unique strategy for this.
In such cases, the government would provide a loan of up to Rs 10 lakh to establish a firm. You can apply if you wish to be self-employed as well.
In fact, the government is financing to micro, small, and medium-sized businesses at low interest rates under the Prime Minister's Mudra Loan Yojana. The Central Government introduced the initiative in 2015. Its goal is to make financing available to small enterprises.
Three types of loan:
Under the first category, loans of up to Rs 50,000 are offered. The second category is 50 thousand to 5 lakhs, while the third category is 5 lakhs to 10 lakhs. Loan repayment terms might be extended for up to five years.
The government makes loans without requiring collateral under the Prime Minister's Mudra Loan Yojana (Mudra Loan Yojana). There is no processing fee for obtaining a loan. The minimum interest rate is around 12%. Interest rates are also affected by the loan amount and payback time.
Minimum age:
The minimum age to apply for a loan under the Mudra Loan Yojana is 18 years. In addition, the credit score must be right, otherwise the bank may reject to make the loan. To obtain a loan, you must provide an Aadhaar card, a nominee, and a business plan. If the proposal is accepted and the necessary documents are provided, the loan will be accessible within 10 days after application.
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Documents required:
- Form of Application
- Photographs of the applicant and co-applicant, if appropriate, in passport size.
- KYC documentation for the applicant and co-applicants
- Identity Proof (Aadhaar Card/Voter ID/Passport/Driving License, etc.)
- Proof of residency (Aadhaar Card/Voter ID Card/Passport/Telephone Bill/Bank Details, etc.)
- Income documentation, such as an ITR, a sales tax return, a licence or registration, and so on.
- Proof of membership in a certain group, such as SC, ST, OBC, minority, and so on (if applicable)
- Proof of business address and tenure, if applicable.
- Registration, authorization, or certification (if any)
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