Micro Units Development & Refinance Agency (MUDRA) is an initiative by Government of India to provide funding to people who want to start a new business or to expand their existing business. Mudra provides finance to banks to further lend money to people residing in rural and urban India. The maximum loan amount offered by banks is up to Rs. 10 lakh. The interest rate offered varies from bank to bank but is comparatively lower than other types of loans and lending options. To avail Mudra loan, applicant needs to submit a project report to lender along with all the required documents.
What is Project Report for Mudra Loan?
Mudra loan offers bank loans at affordable interest rates for setting up of Micro, Small and Medium Enterprises (MSMEs). To avail Mudra loan, applicants need to submit project report to Public Sector Undertaking (PSU) banks. Project report contains all business related information with company background and information on various business activities that an entrepreneur plans to undertake and accomplish. The report should not be lengthy and the format of the report should be neat and easy to understand. Applicants shall self-create the project report for Mudra loan as it’s easy to comprehend own knowledge and thoughts.
In the next section we shall discuss the components of project report, Mudra loan schemes and types of popular project reports presented to lenders by Mudra loan borrowers.
Components of Project Report
Project report consists of all business related details that are as follows:
- Aim/Vision – Focus or target for which the enterprise shall work
- Area of Expertise – Key areas or skills on which employees has expertise and shall work
- Budget – Complete financial information on expenditure required to be invested in the project
- Business Equipment Details – Exhaustive list of equipment, parts, plants and machinery to be used in the project
- Commercial Aspects – Plans to be execute related to commercializing the project
- Company Profile – Details on company’s background, launch, initiation, milestones and achievements
- Export Orders – Information on export orders, whether domestic or international, if any
- Information about Employees – Total number of employees working in the project with their details
- Information of Products and Services – Details of all the products and services to be used in the project
- Logistics Details – Information on transportation cost to be incurred whether private or commercial
- Manufacturing Processes – Details of types of manufacturing processes to be used in the project
- Marketing and Advertising Strategies – Detailed analysis of marketing and advertising strategies to be applied or executed for the project
- Objective – Just as Aim, objective of the enterprise should also be clearly mentioned
- Space or Land Requirement – Information on space or land requirement, if required
- Third Party Details (If Any) – Details of third party if engaged with the project
- Conclusion – All project reports should have conclusion to its end
Mudra Loan Schemes & Types of Project Profiles
Mudra loan is categorized under three loan schemes which are mentioned below:
- Shishu: Loan of upto Rs. 50,000
- Kishor: Loans of above Rs. 50,000 – Rs. 5 lakh
- Tarun: Loans of above Rs. 5 lakh – Rs. 10 lakh
Also Read – How to Apply for Mudra Loan Online?
Types of Project Profiles
- Banana Fiber Extraction and weaving
- Computer Assembling
- Dairy Products
- General Engineering Workshop
- Light Engineering
- Manufacturing of Paper Napkins
- Manufacturing of Paper Products (Paper Cups)
- Metal Based Industries: Agricultural Implements, Cutleries & Hand Tools
- Project Profile on Bakery Products
- Project Profile on Desiccated Coconut Powder
- Project Profile on Steel Furniture
- Project Profile on Curry and Rice Powder
- Project Profile on Detergent Power and Cakes
- Project Profile on Flour Mill
- Project Profile on Manufacturing of Palm Plate
- Project Profile on Papad Manufacturing
- Project Profile on Roasted Rice Flakes
- Project Report on Foot Wear
- Project Report on Note Book Manufacturing
- Project Report on Pickle Unit
- Project Report on Readymade Garments
- Project Report on Wooden Furniture Manufacturing Unit
- Rubberized Coir Manufacturing Project
- Sanitary Napkin Manufacturing Project
- Toilet Soap Manufacturing Unit
- Tomato Sauce Manufacturing Unit
I am 17 years of age; can I apply for Mudra loan?
You will just have to wait until you turn 18 years and then you can apply and start your own business.
Can I open a small grocery store in my village from Mudra loan?
Yes, certainly Mudra loans are meant for these purposes so can instantly open a grocery store with Mudra loan amount.
Do I need to follow any format to make a project report?
No, there is no format for making project report for Mudra Loan.
From where can I get Mudra loan?
Mudra loan is offered by various financial institutions like public and private sector banks, cooperative banks, Regional Rural Banks (RRBs), rural banks from regional sectors, Micro finance Institutions, etc.
Who all are eligible to avail Mudra loan?
Mudra loan can be availed by retailers, shopkeepers, business owners, traders, manufacturers, SMEs, MSMEs, artisans, fruits and vegetables vendors, entrepreneurs, start-up enterprises.
What is the interest rate offered by banks for Mudra loan?
The Mudra loan interest rate varies from bank to bank but is relatively lower than other types of unsecured loans.