For Shop owners, securing a loan is often essential to meet day-to-day operational expenses and drive growth. Thankfully, the Mudra Loan Scheme is a great option for Shop owners. After reading this article you will be able to easily apply for a Mudra Loan of Rs. 10 lacs for your Shop businesses.
In this article, we will explore:
- How Mudra Loans benefit shop owners
- The eligibility criteria for the Mudra Scheme
- The process of applying for a Mudra loan online
- Creating a project report for a Mudra Loan
- The documents necessary for online Mudra Loan applications
Watch Video Guide in Hindi
How Mudra Loan Benefits Shop Owners: Unlocking Business Growth
A Mudra Loan can provide a significant boost to your retail business, facilitating operations and growth in various ways, such as:
- Upgrading your shop with renovations, new furniture, air conditioning, etc.
- Effective inventory management with a Mudra CC limit to replenish stock and maintain a diverse product range.
- Covering rent, utilities, wages, and other routine expenses every month.
- Investing in technology upgrades like computer systems, point-of-sale (POS) machines, and digital payment infrastructure to enhance the customer experience.
With a Mudra Loan, not only can you meet your daily cash flow needs, but you also have the opportunity to scale your business.
Understanding the Eligibility Criteria for Mudra Scheme
The Mudra Loan is tailored for small businesses in the manufacturing, trading, or services sectors. As Shop owners fall under the “Trading” category, they can apply based on the following criteria:
- Loan amount: Shop owners can apply for a Mudra loan under any of these categories based on their financial requirements.
- Shishu: Loans up to Rs. 50,000.
- Kishor: Loans above Rs. 50,000 and up to Rs. 5 lakhs.
- Tarun: Loans above Rs. 5 lakhs and up to Rs. 10 lakhs.
- Business ownership: The business can be a sole proprietorship, partnership, corporation, or limited liability entity.
- Age Requirement: The applicant should be at least 18 years of age.
- Margin money: Your contribution towards the loan. For Shishu loans, no margin money is required. For Kishor and Tarun categories, a 10% contribution of the loan amount is necessary.
Step-by-step Guide to Applying for Mudra Loan for Shop Business Online
To apply for Mudra loan online, visit the Udyami Mitra Portal and click on “Apply Now.” You will be redirected to the New Registration Page where you will have to enter your Full Name, Email address, and Phone number and click on “Generate OTP” and submit the same.
Once you have registered on the website, you will need to submit some basic personal details such as your name, contact information, residential address, gender, education qualifications, annual income, etc. After filling in the basic information, click on “Apply Now” under Loan Application Centre.
Here, You will have an option to select the type of loan you want to avail of. You can select between Mudra Shishu, Kishor or Tarun loan, as per your requirement.
Fill out the application form, starting with the loan amount that you want to avail.
Now, let’s see how to fill each and every requirement of the application form in detail:
Business Information:
| Sr. No. | Requirement | How to fill |
| 1 | Enterprise Name | Fill in the Business’s Name or Shop Name |
| 2 | Constitution | Here you should select whether your business is a sole proprietorship, partnership, LLP, or a registered company. |
| 3 | State/District/City | Choose your State, District and your City. |
| 4 | Address/ Pincode | Enter the official address of your shop |
| 5 | Website of Company | Enter the URL of your company’s website, if any. |
| 6 | Available space for Business | Here from the drop down menu choose whether the Shop is Owned, Rented or Leased. |
| 7 | E-mail/Mobile No./Telephone No. | Enter your valid email id & phone numbers |
| 8 | Enterprise PAN No. | Enter your Business’s PAN no. In case you don’t have Business PAN, you can enter your personal PAN no. |
| 9 | New Business Enterprise | If your Shop is already running then select ‘No’ here |
| 10 | Commencement date | Enter the date on which you started your Shop |
| 11 | Industry Type | Select the industry type as trading. |
| 12 | Industry Group | Select the suitable industry group as per your business. |
| 13 | Proposed Business | Select the appropriate category as per your business. |
| 14 | Product | Add the Products or services that you are going to sell from your shop |
| 15 | Whether Unit is registered? | If your unit is registered under any Legal Act then check this box and provide the details as required. |
Now, click on “Save My Details” and click ‘Next’. Now you need to fill up more detailed information about your loan for which we will first need to prepare our Project Report.
How to make an Effective Project Report for Mudra Loan Application
A well-prepared Project report is critical for your Mudra loan application. You can use teque7.in/fortrisk/’s Project report software to create a detailed and accurate project report.
Firstly visit teque7.in/fortrisk/. Here click on Signup of Free to create your user account. Now login and click the ‘project report’ option.
Now simply enter your business details here and select Mudra Loan from dropdown menu and click next.
On the 2nd page provide owner details like Name, education, work experience, and the number of employees you plan to hire.
Next, give the breakup of assets you’ll buy from the loan amount, like Shop furniture, computers, etc; and in the working capital option, enter the amount you need for shop inventory and other day-to-day expenses.
On the fourth page, give an category wise breakup of your monthly expenses, such as Inventory purchases, rent, electricity, salaries, etc.
That’s it, now the software will automatically prepare a Project Report for you. Click the download button and you will get a complete project report with a Profit & Loss A/c, Balance Sheet, Cash flow statement, Ratio working, and a lot more.
Check the report and you can also edit the report as per your projections and estimates
Now Let’s see how to fill the “Other Information” section of the Mudra Loan application form with the assistance of teque7.in/fortrisk/’s project report.
- Credit Facilities Proposed:
Provide the total loan amount here. In the Primary Security field provide the value of assets that will be purchased from the loan amount. These values you will also find in the the project report.
If additional collateral security, such as property or FD, is being provided, then enter its details as well.
Lastly, enter the number of employees you plan to hire to run the shop business.
2. Future Estimates:
In this section, enter the yearly projected sales, profit, and owner’s net worth values. This data is already calculated by our software’s project report and can be found in the projected income statement and balance sheet page of the report.
3. Banking with Working Capital: Basis of Cash Credit Limit Applied:
This data is automatically calculated by the portal based on the projected sales value. If the CC limit appearing here is lower than required, then you can enter the project report values here.
Other required information, such as the proprietor’s background information, existing banking facilities, preferred lender, etc., should be filled out as appropriate. Once you have filled out all the necessary details, save your information and click Next.
Key Documents Required for an Online Mudra Loan Application
You need to upload documents such as ID proof, address proof, photo, etc.
In the “Projected B/S” and “Proposed Project Report” upload sections, you can upload the project report that was created on our website.
Once you have uploaded all the required documents, check and agree to the “Declaration and No Objection” clause, and click on “Submit My Details.”
That’s it! Your application is now complete and ready to be submitted to avail a Mudra Loan for your Shop.
Conclusively, the Mudra Loan Scheme is a powerful tool to grow your shop business. With the help of Fortrisk Consulting’s Project Report, you can easily apply for a Mudra loan online.
If you have any queries regarding the application process, please let us know in the comment section, and we will try to resolve them as soon as possible.
