Steps to Use Aadhar Card for Taking Mudra Loan

The loan offered by the Micro Units Development Refinance Agency, popularly known as the MUDRA loan, is an excellent initiative by the government to boost the MSME sector. Under this initiative, eligible business owners can take loans of up to Rs. 10 lakhs to establish or expand their small businesses.The government has also ensured that the MUDRA loan application process is simple and straightforward without any complex documentation requirements. Check out the steps you should follow to apply for a MUDRA loan with your Aadhar Card-

The first step to applying for a MUDRA loan is visiting the nearest financial institution that is approved by MUDRA for offering this loan. There are more than 100 financial institutions in the country that offer MUDRA loan facility.Eligible applicants are required to fill and submit the loan application form along with the required documents to apply for the loan.

Here are the documents you’ll need for your Aadhar Card MUDRA loan-

• Copy of Aadhar Card
• Other identity proof in case of no Aadhar Card
• Government-issued address proof
• Copy of bank statement (at least 3 months)
• Copy of caste certificate
• Copy of purchase inventory bills in case if the loan is taken for business expansion
• Business address certificate
• 2 photographs

Submit these documents along with the duly filled MUDRA loan application form to the bank to begin the approval process, which can take 7-10 working days.

The MUDRA loan is one of the most popular government initiatives for the MSME sector. If you are planning to establish your small business or expand your existing business, you can apply for a MUDRA loan with just your Aadhar Card and a few other documents.You can visit the nearest financial institution eligible under this scheme to know more about the loan and begin the application process.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.