A loan is very important for an individual it gives financial liquidity in the time of need. There are various banks where you can apply for a loan.
There are also different types of loans that you can apply for, one of the best loans you can apply for is the Mudra Loan.
Mudra Loan is a loan scheme launched by the Government of India for MSME businesses that not only solve the finance requirement but also offer an amazing interest rate.
Various banks offer this loan including the Government Banks in India. One such loan is the Central Banks in India.
In this article, we will discuss how to apply for Mudra Loan in the Central Bank of India, Documents Required, types of Mudra loans, etc.
Types of Mudra Loan
The following are the three types of Mudra Loan that you can apply for in the Central Bank of India-
| Types | Loan Amount |
| Shishu | Rs.50,000/- |
| Kishor | Rs.50,000/- to Rs.5,00,000/- |
| Tarun | Rs.5,00,000/- to Rs.10,00,000/- |
Eligibility for Mudra Loan
The eligibility criteria for applying for the Mudra Loan are as follows-
- Your age must be in between 18 years of age to 65 years to apply for the loan
- Mudra loan is for businesses hence, if you have a startup or an existing business then you can apply for Mudra Loan
How to Apply for Mudra Loan in Central Bank of India?
The following are the steps that you have to follow to apply for the Mudra Loan in the Central Bank of India-
- Visit the Central Bank of India bank branch and ask the bank representative for the application form for applying for the Mudra Loan
- Now, fill the form with your details like name, address, loan purpose, Amount required, PAN card details, etc.
- After filling out the form attach the below-mentioned documents and submit them to the bank representative
- You’ll be interviewed and documents will be verified followed by negotiating for interest rates and other factors
- After that, your application will be further forwarded to other loan sanction department
- You might be visited by the bank employee at your resident or office/business place to verify and collect details
- After all this process, you’ll be notified about your loan and if your loan has been sanctioned then your loan will be sanctioned to your bank account.
Documents Required for Mudra Loan in Central Bank of India
The documents required for the Mudra Loan in the Central Bank of India are as follows-
- Duly filled Central Bank of India Mudra application form with your photographs attached
- Your KYC documents: Voter’s ID card, Passport, Driver’s license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
- Bank Statement of the last 12 months
- Canceled cheque of your bank account
- Company establishment certificate
- Udayam Certification Number
- Proof of belonging to SC/ST, OBC, or any minority group, if applicable
- Any other document required by the bank
FAQ
The loan approval process can take anywhere from 7 days to 10 days however, the Mudra Loan is offered to the applicant at a faster rate.
The maximum amount under the Mudra Loan that can be sanctioned by the bank is Rs.10,00,000/- and is called the Tarun Mudra Loan scheme.
Yes, Mudra Loan is specially designed for first-time loan seekers. The Government of India has launched this scheme to offer loans to inaccessible people usually from informal sectors like roadside vendors, small shop owners, etc. This type of person does not have a CIBIL score and hence, this loan does not require any credit requirement.
Yes, startups that require funds can apply for the Mudra Loan with a proper business plan. The Mudra loan is specifically designed for new businesses and you can have an access to the credit without a lot of documents as well.
