Yes, udyam registration is mandatory for MUDRA loan. However, it is advisable to register your business with the Udyam Registration portal if you are starting a new business, as it gives your business a unique identity and helps in obtaining various benefits and facilities offered by the government.
What is Mudra Loan?
Mudra loan is a financial scheme launched by the Government of India to provide easy access to credit for micro and small enterprises. It offers loans up to Rs. 10 lakh to small businesses and entrepreneurs without collateral or security. The purpose of this loan is to help small businesses grow and generate employment opportunities. It is provided through banks, non-banking financial companies, and other financial institutions. The loan can be availed by individuals, partnerships, and small enterprises who are engaged in a non-agricultural business activity.
How to apply for Mudra Loan?
To apply for a MUDRA loan, you need to approach a bank or financial institution that is offering MUDRA loans and meet the eligibility criteria for the loan. The eligibility criteria for MUDRA loans may vary from bank to bank and may include factors such as the type of business, turnover of the business, credit score of the borrower, and others. It is advisable to check the eligibility criteria and required documents with the lender before applying for the loan.
How to apply for udyam registration certificate for mudra loan?
- Register for the UDYAM registration portal by visiting https://udyamregistrationform.com/
- Fill out the online application form and upload all required documents, including your PAN card, aadhaar card, and GST certificate (if applicable).
- Wait for the UDYAM registration authority to verify and approve your application.
- Once your application has been approved, you will receive a UDYAM certificate which will serve as proof of your small business status.
- Take this UDYAM certificate to your bank or financial institution to apply for a Mudra loan.
It is important to note that the UDYAM certificate is only valid for one year, so you will need to renew it annually to maintain your eligibility for a Mudra loan.
There are many other government loan scheme for registered MSME businesses, click the button to know about it.