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What are the products under Mudra Loan?

The Mudra Loan scheme offers 3 products to eligible entities, namely Shishu, Kishore, and Tarun. The details of these three products are explained here.

Shishu Loan

Shishu loans under the Mudra scheme allow entrepreneurs on the threshold of starting a business to borrow up to Rs. 50,000. The following details need to be furnished to avail this loan.

• Quotation of machinery and other items that need to be purchased

• Details of plant and machinery purchased

• Details of the supplier providing the plant and machinery

Kishore Loan

Kishore loans range from Rs. 50,001 to Rs. 5,00,000. They’re ideal for businesspersons who require additional funds for expanding their trade. Here’s a checklist of details and documents needed.

• Balance sheet of the business pertaining to the two previous financial years

• Income tax and sales tax returns

• Bank account statements for the previous 6 months

• Estimated balance sheet for the next 1 year or for the duration of the loan sought

• Memorandum of association and articles of association, if applicable

• Sales made in the current financial year before applying for the Mudra loan

• A report exploring the technical and economic sustainability of the applicant’s business

Tarun Loan

Tarun loans under the Mudra Loan scheme range from Rs. 5,00,001 to Rs 10,00,000. Business owners who wish to avail a Tarun loan need to furnish these documents, in addition to the details required for applying to Kishore loans.

• Proof of address

• Proof of identity

• Certificate of SC, ST, OBC, as applicable

With the Mudra Loan scheme, you can borrow up to Rs. 10 lakhs. If your business is in need of more capital or funds, or if you don’t qualify to borrow under the Mudra Loan scheme, you could always avail a business loan on Finserv MARKETS. On Finserv MARKETS, you can apply for loans as high as Rs. 30 lakhs without the need to provide any collateral. The process from application to disbursal is also quick and easy, since there’s minimal documentation involved.