Assess maintained a bakery foods business.
Sales turnover for month rs. 7 lacs
Trade expenses for month rs.4 lacs
1.Assess wanted loan from bank rs.5lacs eligible or not .
2.Loan calculate producure.
Assessee required a loan from bank for Rs. 5 Lakh but various detail of assets/land or security is not provided hence I presume that loan requirement is working capital loan/cash credit limit.
As per RBI guidelines working capital requirement is assessed as 25% of projected turnover, out of which 5% of projected turnover is to be brought in by the borrower and balance 20% is provided by bank.
hence working capital requirement of your business is..
assumed projected turnover is Rs. 7 Lakh
Working capital required is 25% of 7 Lakh i.e. rs. 1,75000/-
Working capital brought in by borrower i.e. 5% of Rs. 7 Lakh ie. 35000/-
Working capital provided by bank as CC limit is Rs. 175000 less 35000 =140000/-
Hence assessee is not eligible for working capital loan of rs. 500000/-
if assessee is registered MSME then he may seek for credit facility under various MSME scheme from his banker like mudra loan etc.
Mudra is Micro Units Development and Refinance Agency. The Mudra scheme or Pradhan Mantri Mudra Yojana was set by the Government of India to provide the required funds to the non-corporate MSMEs. The maximum funds that can be borrowed with Mudra Loan are Rs. 10 lakh which, however, varies as per the business development stage. The funds under Mudra loan is allocated through three schemes which are Shishu- loans up to Rs. 50,000, Kishore-loans up to Rs 5,00,000 and Tarun-loans up to Rs 10 lakhs.
- Mudra loan provides MSME loans without collateral
- Mudra loan is offered with credit guarantee wherein risk sharing is applicable to a set of correlative loans instead of a single loan
Purpose For which Mudra Loan Be Used
Mudra loan scheme helps MSMEs with the following purposes:
- Starting a new business
- Expanding the business
- Purchase of plant and machinery
- To get working capital for business
- Purchasing equipment or commercial vehicles
- Hiring or training staff
Who can apply for Mudra Bank Loan?
The following kinds of business entities can avail the MUDRA loan:
- Business vendors and shopkeepers
- Textile industry
- Food production sector
- Agricultural activities
- Small manufacturers
- Repairing shops
- Truck owners
- Service sector firms
How to Apply for Pradhan Mantri Mudra Loan?
There are several banks that provide Mudra Loan; all you need to do is follow the below-mentioned steps:
Step 1: Visit mudra.org.in to download the form or visit the nearest commercial or private bank.
Step 2: Submit the loan application form with correct details such as your name, address, contact number and Aadhaar details.
Step 3: Submit other documents along with the application form like Identity proof, address proof, company address proof, balance sheet, IT Returns and other machinery details.
Step 4: Complete other formalities and procedures by the bank.
Step 5: Documents will be verified by the bank.
Step 6: Once verified, the loan will get credited in the applicant’s account.
Mudra Loan Documents
The Mudra loan eligibility documents that borrowers need to submit along with the application form are listed below:
- Passport sized photographs of the applicant
- Proof of Identity such as Aadhaar Card, Passport, Voter I-Card, Driving License, etc.
- Residential Proof such as Aadhaar Card, Passport, Bank statements, telephone or electricity bill
- Proof of Address of the enterprise (if any)
- Proof of identity and license of the enterprise (if any)
- Proof of quotation of items to be purchased for business use (if any)