HOW TO GET ₹5 LAKH LOAN FOR YOUR AGRI-BUSINESS - FULL PROCESS

D N DRUPADA KUMAR

UNDERSTANDING MUDRA & AGRI-FOCUS

Pradhan Mantri Mudra Yojana (PMMY) funds non-corporate, non-farm micro-enterprises. Crucially, it includes allied agri-businesses like dairy, poultry, and food processing.

1. IDENTIFY YOUR LOAN CATEGORY

For a ₹5 Lakh loan, you'll apply under the Kishore category, which covers loans from ₹50,001 to ₹5 Lakh, suitable for established businesses needing expansion.

2. CHECK YOUR ELEGIBILITY

Ensure you're an Indian citizen, typically 18-65 years old, engaged in an eligible allied agricultural activity, and not a loan defaulter.

3. PREPARE ALL THE DOCUMENT

Collect your Mudra application form, ID & Address Proofs (Aadhaar, PAN), Business Proofs, bank statements, purchase quotations, and photographs.

4. CRAFT A VARIABLE BUSINESS PLAN

Detail your agri-business idea, projected costs, revenue, and repayment strategy. This demonstrates viability and boosts your application's strength.

5. CHOOSE YOUR APPLICATION METHOD

You can apply online via the Udyamimitra portal or offline by visiting your nearest Public/Private Sector Bank, RRB, or Cooperative Bank.

6. SUBMIT YOUR APPLICATION

For online, register on Udyamimitra, fill the form, and upload documents. For offline, submit your filled form and documents directly at the bank.

7. UNDERGO BANK VERIFICATION

The bank will conduct due diligence, verifying your provided information, business viability, and creditworthiness before proceeding.

8. RECIEVE LOAN APPROVAL & DISBURSAL

Upon successful verification and approval, the loan amount (up to ₹5 Lakh) will be disbursed directly into your designated bank account.

9. UTILIZE FUNDS & REPAY STRATEGICALLY

Utilize the funds judiciously for your agri-business expansion. Repay your loan on time, leveraging flexible tenures (typically 3-5 years) for continued financial health.

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