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What are the Documents Required for Mudra Loan?

What are the documents required for MUDRA Loan

PMMY loan offers up to Rs. 10 Lakh for MSMEs for non-corporate non-farming origin businesses. The objective is to encourage the young generation into entrepreneurship by promoting them with financial aid, focusing on the growth of micro-enterprises. The applicant will require some specific documents to produce to the bank. Below are the documents required for Mudra Loan:

1. Proof of Identity
  • Applicant should produce self-attested photocopies of:
  • Aadhar Card
  • Driving License
  • Voter ID
  • PAN Card
  • Passport
2. Proof of Address
  • Utility Bill copy of electricity, telephone, gas, property tax, etc.
  • Aadhar Card
  • Driving License
  • Voter ID
  • Passport
  • Latest bank account statement
3. Duly fill out the application form for the Mudra loan
4. Applicant passport size photo in 2 number
5. Proof of Business
  • Certificate of Registration
  • Business License
  • Articles of Organization
  • Proof of Business Ownership
  • Or any other documents confirming the business existence and address
6. Business Plan/Project Report

A business plan also known as a project report is a crucial document when applying for a bank loan. The bank uses this document to analyze the overall feasibility, risks, financial viability, and potential of a project. A well-crafted and convincing project report increases the chances of loan approval. With Finline you can craft a compelling project report in less than 10 minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your project report.

7. Other Mudra Loan Documents
  • Photos of owners, partners, etc.
  • Proof of Category – SC/ST/OBC
  • Estimated balance sheet for the loan period
  • Income/sales returns
  • Last 12 month’s Bank Statement
  • Partnership Deed or MoA or AoA
  • Sales during the period and estimated sales for the loan period
  • Business report certifying the economic and technical viability of the business

 Based on the type of business and bank, the documents required for Mudra loan change as per the specific loan schemes like Shishu, Tarun, and Kishor.

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How can I Apply MUDRA Loan?

Applicants can apply for Mudra loans online and offline at their convenience. MUDRA, Micro Units Development & Refinance Agency loans are offered up to ₹ 10 Lakh to micro, small, and medium enterprises. The loan is applicable for a repayment period of a maximum of 5 years without submitting any security as collateral. Public sector banks, private sector banks, NBFCs, co-operative banks, small finance banks, regional rural banks, and microfinance institutions consider the loan application with genuine and proper documents.

How to Apply for a MUDRA Loan Online?

Applicants can apply for a Mudra loan online by visiting the official website of the particular bank. It saves time and trouble-free process. Below are simple steps to apply for Mudra loan registration online:

  1. Identify the appropriate bank.
  2. Browse the official website of the particular bank.
  3. Download the online application form.
  4. Fill in the different sections and fields with the required details
  5. Complete the application and necessary documents
  6. Submit Project Report/Business plan
  7. Wait for the bank representative to contact you for further processing.
  8. Once the loan application form and attached documents are processed and verified, the loan shall be approved and further disbursed by the bank
How to Apply for a MUDRA Loan Offline?

If applicants want to file the Mudra loan application form offline, follow the below-mentioned steps:

  1. Applicants should research the particular bank that provides Mudra loans. Study the interest rates and other charges before you put up an application.
  2. Completed application form.
  3. Submit Project report/Business plan.
  4. Together with the application form, submit the passport-sized photographs, identity proof, address proof, company’s address and identity proof, caste certificate, if applicable, financial statements, IT returns, sales tax returns, and other equipment details.
  5. Complete all the bank’s formalities and procedures.
  6. The loan shall get approved, once all the documents are verified.
  7. After the loan is approved, the desired amount will get credited to the particular bank account within working days.
How to apply and download the MUDRA Loan application form?

CLICK HERE

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your report.

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Business Loan EMI Calculation

Business loans are loans that companies avail themselves of with a specific interest and repayment period to meet the growing business requirement. Business loans help to fund the business to expand existing business, production, buy new machinery, etc. Funding the business at the correct time is a booster for any business to ensure smooth business functioning. As well as business loan EMI calculation and repayment is an important element in business.

However, with structured business loan EMI options and extended loan tenures, you can plan on your workforce, the latest technology, and a new business idea and manage your company’s cash flow. The EMI payment should be managed systematically for the business loan.

What is Business Loan EMI? How to Calculate the EMI?

Business loans can be repaid in different ways, one of the coolest ways to repay a business loan is through Equated Monthly Instalments (EMIs). The loan amount will be divided into equal fixed sums that can be paid every month till the full repayment of the loan. 

An EMI consists of two parts, the principal loan amount and the accrued interest. MSMEs find it easier to repay business loans with EMIs, as it allows the business to fund expensive assets and expansions without hurting the smaller operating budgets. NBFC loans offer flexible business loan EMIs that makes the repayment of business loan two times faster by opting for bi-weekly repayments. Faster repayments mean faster access to refinance for the same amount or a larger business loan with the loan offer.

The Business loan EMI Calculation for Business Loan involves a formula i.e,

E = P*r*(1+r)n / (1+r)n-1

Here,

‘E’ is the EMI

‘P’ is the loan amount

‘r’ represents the rate of interest

‘n’ stands for the loan tenor

What are the Business Loan EMI Calculation options available?
  1. Fixed EMI   

Fixed EMI calculates the principal amount and the interest amount charged over the loan tenure will be fixed. This is a fixed business loan meanwhile the monthly installment remains the same for the entire loan period. This business loan repayment method is ideal for one who has a steady and consistent income source.

  1. Structured EMI

A structured EMI plan allows you to choose a repayment process that is best suitable for your salary and other expenses. If you are a person who can bring more money at regular intervals for the repayment of loans and expenses, then this EMI plan is perfect for you. 

What is a Business Loan EMI Calculator?

You can plan your business loan EMI amount with the help of an EMI calculator which is available online. This gives an amount that you will pay towards the interest payment and principal payment over the overall loan tenure, also you can plan your monthly budget and other business expenses to ensure a timely repayment.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, all public and private sector banks working in India accept our project report. Click to create your report.

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Project Report Tool for Financial Professionals

Perfect project report tool for Chartered Accountants, Company Secretary, Tax consultants, Advocates/Attorneys.

Finline is the first online platform tool to create project reports for bank loans. With Finline professionals can create a perfect report within a very short time. The application will help create a company profile, business profile (we provide sample content), and financial projections more easily. While inputting the financial fields, the application will automatically create the profit and loss, cash flow, and balance sheet for certain years in the future. At the same time, the application will provide the financial ratios based on the financial sheets and suggest the firm’s viability in the long run.

Important ratios covered in inline report are DSCR, Current ratio, Quick ratio,Interest coverage ratio, Debt equity ratio,TOL/TNW , Return On Capital Employed, Net profit Sales Percentage, Gross profit Sales Percentage, BEP in % of installed capacity, BEP in sales.

Major sections in Finline reports are as follows

  • Project at a glance
  • Feasibility Ratio of the project
  • Project Feasibility graph
  • Introduction
  • Scope of the project
  • Promoter(s) details
  • Location, Land, Building & Utilities
  • Product/services & process
  • Raw materials / Consumables
  • Plant & machinery/equipment
  • Market Potential & Strategy
  • Manpower requirements
  • Project Cost
  • Working Capital Computation
  • Annual Sales / Revenue
  • Total Monthly Expense
  • Application of Fund
  • Means of Finance
  • Profitability Statement
  • Cash flow statement
  • Balance sheet
  • Repayment of Term loan
  • Debt Service Coverage Ratio
  • Depreciation
  • Break Even Point
  • Assumption
  • Conclusion

SEE IF THE FINLINE IS RIGHT FOR YOU

  • Pricing as low as Rs.688 / report
  • Reduce your time spent on report writing
  • Ratios and projections included automatically
  • Beautiful, dynamic reports for printing
  • Sample text contents to use
  • Save, duplicate any number of reports
START NOW

FINLINE SAVES YOUR TIME

  • Transform your business processes
  • Provide comprehensive action-based analytics
  • Maximize your ROI
  • Boost your workflow
  • Lead to Successful Technology Adoption
  • Let your business scale up at any time
VIEW A SAMPLE REPORT
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Project Report for Bank Loan

If you need a bank loan to start your dream business, a project report is a necessary document. Struggling to make one? Don’t worry, you are at the right place!

In this blog, we will discuss about:
1) What is a project report?
2) Why do you need it?
3) How can you prepare a convincing project report?

1) What is a project report?

A project report is a mandatory document that outlines different aspects of the business or startup project. It should contain the project’s details, feasibility, and financial requirements. Here comes the next question, why does someone need this?

2) Why do you need it?

There are several reasons which show project reports as a must. Some of them are listed below:

  • Project reports will help the bank assess your project’s success rate and can thereby make sure that you can repay the loan.
  • It will help the bank understand the project’s risks and rewards.
  • Submitting a decent project report shows the lender that you have done enough homework and is serious about the project. The project report also provides information about your qualifications and experience.
3) How can you prepare a convincing project report?

A strong and convincing project report should contain the following:

  1. Executive summary: An executive summary is a short summary containing the business’s overall status. It should be concise and should provide an overview of the entire project.
  2. Project description: It should explain the project’s nature, purpose, scope etc.
  3. Details of promoters: The details of the promoter’s skills, qualifications and experience should be mentioned.
  4. Details of Employees: Like the promoters, the details of the employee’s skills, qualifications and experience should also be mentioned.
  5. Production plan: This includes the details such as plant and machinery, raw material used and steps in the manufacturing process.
  6. Market analysis: It conducts research about the market to understand the demand for your product and services.
  7. Marketing plan: This provides the details about the marketing and sales strategies of your product/service.
  8. Project cost estimation: It’s the estimated expense that arises at the time of building the project.
  9. Balance sheet: All accounts will be visible on the balance sheet so that the lender can see where the money was spent.
  10. Profit and loss account: It shows whether the company is making a profit or a loss.
  11. Cash flow statement: It allows the lender to understand whether you have the ability to repay the loan.
  12. Loan repayment plan: This section should provide a well-defined plan for repayment of the loan.
  13. Break-Even point evaluations: It shows the point at which the project revenue equals its expenses.
  14. Conclusion: Lastly, Conclude the report by summarizing the key strengths of the project. Make it short and compelling.
About Finline!

Still, having trouble creating one? Let us help you. Our expert team at Finline helps you craft a compelling project report in less than 10 minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.

Now there is nothing stopping you from starting your dream business. Begin your journey with Finline right away!

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