PM Aadhar Card Loan Yojana is a government initiative aimed at empowering small and medium enterprises across India. This scheme is mostly known as the PM Mudra Loan scheme. The scheme aims to provide financial assistance to emerging and established business owners who do not have access to conventional bank loans.
In this article, we will discuss various aspects of the PM Aadhar Card Loan Scheme, such as its benefits, eligibility criteria, and how Business Startup Loan India can boost the growth of entrepreneurship in India.
PM Aadhar Card Loan Yojana Detail Review (PM Mudra Loan Scheme)
|PM Aadhar Card Loan Yojana (PM Mudra Loan)
|Competitive Interest Rate starting from 10.50% per annum onwards.
|10000 to 10 lakhs
|Up to 5 years
|Processing Fee & Charges
|Nil for Shishu and Kishor to MSE Units for Tarun: 0.50% of the sanctioned loan amount +GST
|Between 3-5 years (moratorium of up to 6 months) depending on the income generation Review of WC/TL to be done annually
|Up to Rs. 50,000 Nil and from Rs 50,001 to Rs. 10 Lakhs is 10%
|Call Us at National Toll-Free Number
|1800 180 1111/1800 11 0001
Must Read this: RBI Approved Loan App List in India 2023
Eligibility Criteria for PM Aadhar Card Loan Yojana
You have to be eligible to avail the benefits of the PM Aadhar Card Loan Yojana (PM Mudra Loan Scheme). If you meet the eligibility criteria, you can get a business loan of up to Rs 10 lakh.
- Applicant must be at least 18 years of age at the time of application.
- The applicant must be a citizen of India.
- The loan is available for non-agriculture and non-corporate micro and small enterprises.
- It is mandatory to have a valid Aadhar card for the application.
- The loan should be used only for business-related activities.
- The applicant should not have any history of loan default.
The bank offers PM Mudra loans in the form of term loans for various business needs. Under the PM Mudra scheme, a maximum loan of Rs 10 lakh is given by banks. Businesses engaged in the manufacturing or service sector are eligible for CGTMSE Guarantee. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantees certain loans to applicants under the Mudra scheme.
Documents Required for PM Aadhar Card Loan Yojana
To apply for the PM Aadhar Card Loan Yojana, the following documents are required:
- Aadhar Card: A valid Aadhar card is mandatory for the application process. It serves as primary identity proof.
- Proof of Business Existence: Individuals need to provide documents proving the existence of their business, such as business registration certificates, licenses, or permits.
- Identity Proof: Any one of the documents – Passport, PAN Card, Ration Card, Aadhar Card, Voter’s ID Card, Driving License
- Address Proof: Any one of the documents – Telephone bill, Electricity bill, Passport, Ration Card, Rental agreement, Aadhar Card
- Bank Statements: Applicants should submit bank statements for the past six months to showcase their financial transactions and credibility.
- Business Plan: A detailed business plan outlining the purpose of the loan and how it will be utilized is essential for the application.
- Passport-sized Photographs: Recent passport-sized photographs of the applicant are necessary for identification purposes.
- Proof of Category like SC/ST/OBC/Minority etc.
Features & Benefits of PM Aadhar Card Loan Yojana (PM Mudra Loan Yojana)
Easy Access to Finance: The PM Aadhar Card Loan Yojana provides easy access to finance for entrepreneurs, enabling them to kickstart their ventures without excessive paperwork and delays.
Competitive Interest Rates: The interest rates under this scheme are competitive, ensuring that borrowers can repay their loans without feeling burdened by interest charges.
Flexible Loan Amount: Entrepreneurs can apply for varying loan amounts based on their business requirements, allowing them to scale up operations effectively.
No Collateral Required: One of the standout features of this scheme is that it does not require collateral, making it an attractive option for entrepreneurs without significant assets to pledge.
Boost to Rural Entrepreneurs: PM Aadhar Card Loan Yojana extends its benefits to rural entrepreneurs thereby encouraging rural economic development.
Employment Generation: By supporting small businesses and startups, the scheme contributes to employment generation, reducing unemployment rates in the country.
How PM Aadhar Card Loan Yojana Empowers Entrepreneurs
PM Aadhar Card Loan Yojana empowers entrepreneurs in multiple ways, some of which include:
Unleashing Creativity: The scheme allows individuals to convert their innovative business ideas into reality, fostering creativity and ingenuity.
Financial Independence: By availing of the loans, entrepreneurs become financially independent, reducing dependence on external sources for capital.
Capacity Building: Entrepreneurs can use the loan to enhance their business infrastructure, expand operations, and increase production capacity.
Skill Development: With access to funds, entrepreneurs can invest in skill development for themselves and their employees, improving overall productivity.
Diversification: The scheme encourages entrepreneurs to explore diverse business opportunities leading to sectoral diversification and risk reduction.
Tips to improve your chances of getting a PM Aadhar Card Loan?
- Ensure that your Aadhaar card is valid, active, and linked to your mobile number and other essential details.
- Familiarize yourself with the eligibility requirements of the specific loan scheme you are interested in. These may vary depending on the type of loan and the lending institution.
- Provide all the documents required for the loan application, including your Aadhaar card, identity proof, address proof, income proof, and any other documents specified by the lender.
- While some government-backed loan schemes might be more accessible to individuals with limited credit history, having a good credit score can still enhance your chances of approval.
- If you are applying for a business loan, have a well-defined business plan that outlines your business goals, strategies, financial projections, and how the loan will be utilized to grow your business.
How to apply for PM Aadhar Card Loan Scheme?
You can apply for Shishu and Kishor’s loans through online and offline methods to avail of the PM Mudra loan. But to avail of a Tarun loan you have to apply offline. You can apply for PM Aadhar Card Loan (PM Mudra Loan Yojana) by visiting any government bank. Here we will tell you how to apply for a loan through SBI.
Customers who have a savings or current account with SBI can apply for a loan of up to Rs 1 lakh by visiting the SBI PM Mudra portal and following the steps mentioned below.
Step 1: Select Application Form from the drop-down menu
Step 2: Click on https://emudra.sbi.co.in:8044/emudra and click on ‘Proceed’.
Step 3: Please provide the Aadhar Card of the applicant for e-KYC through UIDAI, as the loan processing and disbursement are to be completed through e-KYC and e-Sign OTP verification.
Step 4: Once the loan-related formalities are completed, the applicant will receive an SMS through which they will again visit the e-Mudra portal to initiate the further process.
Step 5: The process needs to be completed within 30 days from the date of receipt of the loan sanction receipt.
Note: Applicant must upload the document in JPEG, PDF, or PNG format with a maximum file size of 2 MB.
FAQ Related to PM Aadhar Card Loan Yojana
Is the PM Aadhar Card Loan Yojana applicable only to new businesses?
No, the PM Aadhar Card Loan Yojana applies to new and existing businesses. It aims to support micro and small enterprises, regardless of their stage of operation.
Are women entrepreneurs eligible to apply for this scheme?
Yes, women entrepreneurs are encouraged to apply for the PM Aadhar Card Loan Yojana. The scheme promotes women’s entrepreneurship and provides them with equal opportunities.
Can the loan amount be used for personal purposes?
No, the loan amount must be used solely for business-related activities. Using the funds for personal purposes is not allowed and may result in legal consequences.
Can an individual apply for multiple loans under this scheme?
No, an individual can apply for only one loan under the PM Aadhar Card Loan Yojana. Multiple loan applications are not allowed.
What is the maximum loan amount that can be availed under this Yojana?
The maximum loan amount that can be availed under the PM Aadhar Card Loan Yojana is Rs 10 lakh, which you can use to meet your business needs.
In this article, I have given you detailed information about PM Aadhar Card Loan Scheme (PM Mudra Loan). The main objective of the Pradhan Mantri Aadhar Card Loan Scheme is to provide loans ranging from Rs 10000 to Rs 10 Lakh at a low-interest rate without any guarantee to empower small and medium enterprises.
Under this scheme, the entrepreneur can take a loan to expand his business or start a new business. We have told you in this article how the loan is taken under this scheme. We advise you that if you need money to expand your business, then take advantage of this government scheme and also keep in mind that the funds should be used properly, otherwise this loan will become a burden for you.