Shishu Loan Under Mudra Loan Yojana

Pradhan Mantri Mudra Yojana is the Government scheme to provide financial support for people who want to start their own business in rural and urban areas. Micro Units Development and Refinance Agency shortly called as MUDRA.  Mudra bank loan Yojana offers 3 types of loans. The three variants are Shishu, Kishor, and Tarun.

This Shishu Loan is specially designed for the people who want loans at their early stage or beginning stage. Indian Government wants to support these businesses more than the other business. Mudra scheme provides 60% funds towards the Shishu loan.

Features for Shishu Loans:

  • The Shishu loan is better than the personal loans
  • The maximum amount Rs 50,000 can be taken out the Shishu loan
  • The loan amount can be repaid within the period of 5 Years
  • The annual interest rate will be charged by the banks vary between 11% to 12%
  • Banks do not charge any money for processing Shishu loan

Required Documents for Shishu Loan:

Different lenders may ask for different documents. Here we mentioned all documents for Shishu loan

  • Address proof
  • Identity proof
  • Your balance sheet, sales tax returns and your IT returns during 3 years
  • A disclosure for business liabilities and business assets
  • Business address proof document
  • If your business is registered then submit the registration forms
  • If your business property is taken on rent then you need to provide the rental agreement copy
  • You must provide the income tax return of guarantor or promoter
  • You need to submit the 2 years projected balance sheet, because your business liability of term loan to the tune of Rs 2 Lakh/more than amount
  • You need to provide the projected 2 years balance sheet to lender

How to apply for Shishu Loan under Mudra Yojana:

Shishu loan is provided in all banks under Pradhan Mantri Mudra Yojana. It is provided by non-banking financial companies that have been approved by the Indian government.  The most business owners are not familiar with internet so the banks kept Application Form offline.

  • Applicant must visit the nearest supportive banks
  • Ask for the Shishu Loan Application form
  • Fill the form carefully and attach the necessary documents
  • Submit them to the same lender
  • Once your certificate verification is completed then loan will be disbursed into your account