Documents to Present When Applying for MUDRA Loan:
When applying for MUDRA loan under the Pradhan Mantri MUDRA Yojana scheme, you need to know that there are guidelines you should follow. It is important that you know what kind of documents you should present to the MUDRA loan participating financial institutions so that you make the application, processing, and approval a seamless process. When you have filled the MUDRA loan application form, you will also want to present these documents:
Proof of Identity:
The MUDRA loan applicant will need to provide a self-attested identity proof document. This document may be a voter ID card or a photo ID card that has been issued by the government. Other documents that may act as proof of identity are a driving license, AADHAR card, PAN card, or passport. Find out from the eligible participating lending institutions to know which type of document they accept as proof of identity.
Proof of residence:
A person applying for the MUDRA loan will need to provide one copy of the document that proofs their residence. For example, the applicant can provide a recent telephone bill that is not older than three months. They can also present a copy of the electricity bill, which again shouldn’t be more than three months old. Other documents that may serve as proof of residence are property tax receipt which should not be older than two months or a bank statement that has dully been attested or verified and certified by the bank officials. A voter ID card, passport, and AADHAR card may also act as proof of residence.
Passport size photos:
Along with the proof of residence and identity documents, an applicant for MUDRA loan should also present two passport size photos. The photos should be recent ones.
Quotation of machinery and other items:
If you will be purchasing machinery or other items for your business, you will need to attach the quotation. There should be sufficient information about the supplier and the details of the machinery or item to be purchased. The total cost of the machinery or items need also be included in that document.
Proof of business identity and address:
When applying for the loan, you also need to provide proof of identity for your business as well as the proof of address. You can present copies of recent licenses for the business, registration certificates for the business, or any other documents that show proof of ownership of the business and the address.
If an applicant comes from a minority community and they want to get the loan under the MUDRA bank, they need to add proof of category. For example, they can include photocopies of category certificates such as Minority, ST, SC, and OBC.
An applicant will need to present these documents to the participating or affiliate financial institution to MUDRA scheme so that they are looked at and checked for approval of the loan. About 60 percent of the MUDRA loans offered to applicants follow under the Shishu category while another 20 percent are in the category of Kishor with the rest (about 20 percent) being awarded under the Tarun category. If you are applying for Shishu loan, you don’t need any security to act as collateral for the credit facility. Also, you don’t need to pay a loan processing fee. The time limit for repaying the loan is up to five years.