Mudra Loan is a specialized loan offered by banks to new entrepreneurs or to business who wants to expand their reach.
The loan helps the individuals with their initial capital requirements and provides you with startup capital. You can apply for the Mudra Loan in any bank including the Government banks like Punjab and Sind Bank.
In this article, we will discuss how to apply for the Mudra Loan in Punjab and Sind Bank, Documents required, Eligibility, etc.
Types of Mudra Loan
There are three types of mudra loan that you can apply for, which are as follows-
In Shishu loan, the loan amount is up to Rs.50,000/- and is best suited for those who just want to get themselves started with a business
Under the Kishor Mudra Nidhi scheme, the loan amount to be sanctioned can be between Rs.50,000/- to Rs.5,00,000/-
You can get a loan amount from Rs.5,00,000/- up to Rs.10,00,000/-
Eligibility for Mudra Loan
The following are the eligibility criteria for the Mudra Loan-
- The applicant must be a citizen of India with resident status
- For startups, a business plan strategy is a must-have document
- For seeking a loan, the company must be legally registered as any of the business entity
How to Apply for Mudra Loan in Punjab and Sind Bank?
You can follow these steps to apply for the Mudra Loan in Punjab and Sind Bank-
- Visit your Punjab and Sind Bank branch and ask the bank representative for the Mudra Loan application form
- Now, fill out the application form with correct details like name, amount requirements, Address, startup/business details, etc.
- After filling out the application form, you’ll have to attach the document mentioned below along with the form and submit the form to the bank representative
- The bank representative will review your application and provide you with information related to your application and loan requirement
- After submitting the form, your loan request will be reviewed and you’ll be contacted by the bank within a few days regarding your loan
- After the bank completes its access, they will provide you with the information regarding your mudra loan application
- Now, if your loan has been sanctioned then you’ll receive the loan amount in your bank
Documents Required for Mudra Loan
The following are the documents required for the Mudra Loan-
- Identity Proof: Aadhar card, Voter ID card, PAN card
- Business Plan
- ID Proof of SC/ST category, if any applicant falls under this category
- 2 passport-size photographs of the applicant
- Age Proof
- Address Proof- Credit card bill, Utility bill, etc.
- Income Proof
- Last 12 months’ bank statement
- Business establishment certificate
- UDYAM and/or Startup India Registration
The loan repayment tenure for the Mudra Loan is in between 12 months to 5 years depending on the loan amount.
Yes, ITR is necessary for applying for the Mudra Loan however, there are exceptions for Startups.
No, Startups do not need ITR however, they must have a business plan which showcases the income generation method.
No, Mudra Loan does not require any collateral required.
The interest rate can range widely and depends on the loan amount and the risk observed by the bank. The interest rate starts anywhere from 7% and goes up to 12% p.a.
No, Mudra Loan does not require any loan processing fee.