Five Common Misconceptions About Mudra Loan
Our Loan experts at Loan Guru brings you this exclusive post on demand of readers! We prepared this post on Common Misconceptions About Mudra Loan.
Mudra Loan has become a popular loan now a days. Every small and medium entrepreneur wants to avail this loan. Bankers do not provide this loan easily to all Mudra Loan applicants. This creates a gap in the Mudra Loan aspirants. During loan facilitation assignment conducted by our loan experts we came to know about Common Misconceptions about Mudra Loan among people for mudra loan process and disbursal. We took this forward to discuss on a wide platform and make people aware about this.
We have listed below the five common misconceptions about mudra loan:
1. Without a Governemnt Job Guarantor Mudra can not be applied
First Common Misconceptions About Mudra Loan is that without government job guarantor mudra loan can not be applied. When you approach bankers on Mudra Loan, they seek for the collateral or security against the loan amount. This is why they ask for a guarantor for Mudra Loan. Many bank say it is their internal policy. However this is not mandatory as per the guidelines issued by government. Not every bank ask for this. You must convey in the first discussion about guarantor or security.
2. Collateral is a must requirement against the security of loan amount
Second Common Misconceptions About Mudra Loan is about collateral or security. Collateral or Security is not a mandatory condition to avail mudra loan. Every bank doesn’t even ask for this. However they seek the repayment capacity of lender. Government has also eliminated the collateral or security condition in the eligibility criteria in mudra loan guidelines. For more on mudra please visit our page on Mudra Loan
3. Document preparation for Mudra Loan application is complicated
Third Common Misconceptions About Mudra Loan is about Documentation required. Mudra loan application is different from a common application form but it yet not complicated. Forr a business related documents like your project details, balance sheets, financial statement and finance projections your CA or CS will assist you. Simple application form is easy available in common domain on Mudra – How to get a mudra loan or visit Mudra Official Website
4. There is huge commission taken by agents & brokers for Mudra Loan approvals
Fourth Common Misconceptions About Mudra Loan is about huge commission or brokerage taken by loan agents. Mudra loan is facilitated under government schemes to support small and medium enterprises. Hence, it becomes evident that loan agents or brokers in market ask to apply through them and deal for commissions. But we at Loan Guru – Loan Experts suggest you not to entertain these agents or brokers. Visit bank branches offering Mudra loan near your house or office and apply yourself. Within branches there are loan officers who will guide you the right way. The best practice is to do things with your hands to avoid any cheating or fraud in loan process.
5. Government may wave off the Mudra Loan debts in future!
Fifth Common Misconceptions About Mudra Loan is that government may wave off Mudra Loans in near future. Never Ever ! These mudra loans are the money disbursed by banks as per their business model of lending under government schemes. Bankers will recover this loan otherwise their lending capacity will severely hamper. Government will not announce its waiver like other farmer debts as it is pure business oriented loan. Unless there is a do or die situation for government and bankers, the loan will be recovered at any cost by them. We suggest all mudra loan applicants to well plan their repayment on time every time and keep their CIBIL score healthy.
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