BJP’s Promise: Now Get ₹20 Lakh in Mudra Loan Scheme Without Guarantee – Key Features Revealed

The Bharatiya Janata Party (BJP) had announced its manifesto for the 2024 Lok Sabha elections on Sunday. It states that under the Prime Minister Mudra Yojana, the available loans will be increased from 10 lakh rupees to 20 lakh rupees. This means that if the BJP government comes back to power, the amount of loans available under the scheme will be doubled.

Categories of Loans in the Scheme

Under this scheme, loans are provided in 3 categories. For those starting a business under the Mudra Yojana, loans will be provided in three categories. The first category is for children. Under this, people will get a loan of 50,000 rupees. The second category is adolescence, under which loans ranging from 50,000 to 5 lakh rupees will be provided. The third category is youth, under which loans ranging from 5 lakh to 10 lakh rupees will be provided.

No Guarantee Required for Taking Loans

The purpose of this scheme, initiated in 2015, is to provide loans without any guarantee to street vendors and small traders. Anyone who wants to start their own business can avail loans under this scheme. Additionally, if someone wants to expand their existing business, they can also get a loan through this scheme.

Submission of Business Plan for Taking Loans

All applicants will have to prepare a business plan first. After that, all the necessary documents for the loan will also have to be prepared. Along with general documents, banks will also demand related documents such as your business plan, project report, estimated income, etc. So, you can get information about your requirements and how you will benefit or profit from it.

Interest Rate to be Paid

The special thing about the Mudra loan is that it does not have a fixed interest rate. Different banks can charge different interest rates on loans. The interest rate depends on the nature of the business and the associated risks. Generally, the interest rate is between 10 to 12% annually.

How to Apply for a Mudra Loan?

Firstly, confirm from which bank/financial institution you want to take the loan. The applicant can choose one or more banks. Along with the required documents, the loan application form will need to be filled out and submitted to the bank.

For a Mudra loan, you’ll need to submit the following documents along with your application form: a business plan or project report, identification documents such as PAN card, Aadhaar card, voter ID, etc. Additionally, for multiple applicants, partnership-related documents, tax registration, business licenses, etc., may be required. The number of documents may increase or decrease based on the loan amount, nature of the business, and bank regulations.

Documents related to residence proof, such as telephone bills or electricity bills. The applicant’s photographs should not be older than 6 months. Quotations for machinery or other materials to be purchased, along with information about the supplier/retailer, categories (SC/ST/OBC/Minority), if applicable, the previous two years’ balance sheets, and estimated balance sheets (for loans above Rs. 2 lakhs).

For a Mudra loan, you can apply through the government or any bank or financial institution offering Mudra loans. For the application, you’ll need to submit complete information/plan of your business and other necessary documents.

If the application is approved, the bank or financial institution will sanction the Mudra loan and provide the applicant with a Mudra card (debit card). You can then spend as per your convenience.