How to Get a Small Business Expansion Loan

Here's what you need to know about getting cash to go from small to bigger.

Get a Small Business Expansion Loan

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"A lot of times you can get an expansion loan without coming up with any cash injection."

If you're a small business owner looking to take your business to the next level, you may not have the capital you need to expand. A small business expansion loan can provide you with the cash you need to open up a new location, hire staff or upgrade your equipment. But where do you start and how do you know if taking out a business expansion loan is a good idea? Here's a quick guide to help you take the next step.

What Is a Small Business Expansion Loan?

A small business expansion loan is designed specifically for established businesses. The capital from an expansion loan can make it possible for you to scale your business or keep pace with growth.

If you applied for a business loan when you first started your business, you might be hesitant to go through the process again. Getting a startup business loan can require a down payment of 20 to 30 percent, and lenders typically do a significant amount of vetting of your business plan. But if your business now has a track record of success, the process could be much easier.

"The requirements are not as difficult as it would be for a startup business loan," says John Fleming, Delaware district director for the U.S. Small Business Administration. "A lot of times you can get an expansion loan without coming up with any cash injection."

Before you start the process of finding a lender, however, it's essential that you have a plan for the cash and make sure borrowing is a good idea.

[Read: The Best Small Business Loans of 2018 .]

What to Use the Money for

There are plenty of ways you can use the funds from a small business expansion loan, so it's important to focus on what your business needs to grow. Here are just a few ways you might want to use your loan money:

Expand your team. Whether you're running the business solo or you have a small team, you might feel like you're stretching yourself too thin. Growing the team can not only help you keep up with demand, but it can also help you offload more menial tasks to new employees and give you and other decision-makers more time to focus on the big picture.

Open or expand a location. It's common for a new business to outgrow its first physical location. Maybe it's starting to feel like standing room only at the office, or customer demand is so high that the line is typically out the door. A small business expansion loan can help you afford to expand your current facilities or open a new location, potentially relieving some stress and opening up new opportunities to expand in other ways.

Your Guide to Taking Out a Business Loan

Geoff Williams Dec. 5, 2017

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Finance new equipment. Sometimes, your team is big enough, and your location size is sufficient, but your equipment needs an upgrade. For example, a restaurant could meet customer demands better with a new oven, or a manufacturing business could increase production with higher-capacity machinery.

Launch a new product. If you started your business with just one or two products and found a good market for them, your business might benefit from adding a new one to the line. Expanding a product line can be expensive, though. You'll need to invest in research and development, pay for material and manufacturing costs, and so on. A business expansion loan can help you afford those costs without draining your retained earnings .

Expand to a new market. Say you've found success with your current product or service, but the current market you're in is saturated or you see a new market with less competition. An expansion loan can help you cover the costs associated with that jump to a new market.

How to Make Sure a Business Expansion Loan is a Good Decision

Understand your motivation. Just because you can borrow money for your business doesn't mean you should.

"You need to recognize why you're expanding," says Fleming. "Are you expanding just for the sake of expansion? Some people do that, where they run before they walk."

[Read: The Best Bad Credit Loans for Small Businesses of 2018 .]

It's important to be honest with yourself about why you want to grow your business. If you don't feel like you have a handle on things as they stand, expanding could cause you to lose control entirely.

Do the math. While a business expansion loan may be easier to get than a startup loan, you'll still need to provide lenders with a good reason to give you the money. This means that your expansion idea needs to be profitable. If you're looking to expand to a new location, for instance, start looking at potential options. Price it out, and consider all of the costs involved. Do the process for a few different locations in case your top option falls through. Then run the numbers for how much a new location would boost your bottom line to make sure the return on investment is worth it.

Make sure you can manage the growth. Even if your expansion idea is profitable, be clear about how you're going to manage your new product line, location or team. If you're the only business owner, you may need to bring in a partner or hire someone with management skills to avoid putting the full burden on yourself.

What You'll Need to Apply

Once you've done your due diligence, the next step is to get your plans and documents together to apply for a small business expansion loan.

Here's a quick summary of what you should have ready to go before you apply:

Tax returns: You'll typically need to submit your personal and business tax returns for the past three years. These provide the lender with an idea of whether your company has a good track record of profitability.

Financial statements: This may include your balance sheet, income statement and cash flow statement . It shows lenders the state of your business. "Lenders are going to want to make sure [you have] sufficient cash flow to cover any new debt payments," says Patrick O'Keefe, CEO of Grow Michigan, a fund established by a group of banks to help Michigan-based small businesses.

Business plan: Share some details about your business, how you plan to use the funds and how you'll make it profitable.

Collateral : Even with an established business, lenders may require collateral to protect themselves against default. Consider which tangible business assets you could use to secure the loan.

Business credit report: If you've established a good credit history for your business, it can improve your chances of getting approved. If your business credit is poor, though, or you haven't established a credit history, you may have a hard time securing a loan.

Legal documents: Lenders may require various legal documents for your business, such as your business license, articles of incorporation, third-party contracts, franchise agreements and commercial leases.

Where to Go for a Small Business Expansion Loan

There's no shortage of small business lenders, so it's important to know what your options are and the benefits and drawbacks of each.

Where to Get Money for Your Business Idea

Maryalene LaPonsie June 30, 2016

business improvement loan scheme

SBA loans: The Small Business Administration insures business loans through its 7(a) and 504 loan programs. SBA loans provide reasonable interest rates and long repayment terms, making it easier to find a loan that fits your budget. But the approval process can take 60 to 90 days, and the requirements can be strict. You may also need to put up collateral.

Commercial banks: Many traditional banks have a commercial lending arm that provides loans and other services to business owners. And if you've been in business for a while, chances are that you've already established a relationship with a bank.

"If you're happy with your current bank," says Fleming, "we typically recommend going with them."

Commercial banks usually offer competitive interest rates and various other business services. But you'll usually need a strong personal or business credit history to get approved. You'll also generally need to provide collateral to secure the loan.

Credit unions: If you need a smaller loan, it may be worth checking with your local credit union. Credit unions often provide lower interest rates and fees than traditional banks, and a credit union may approve your loan more quickly. But not all credit unions offer business services, so it can be harder to keep everything under one roof. You also generally need to be a member of the credit union to apply for a loan.

Online lenders: If you need your cash fast and want to avoid an intense underwriting process, online business lenders may be worth considering. They usually require less documentation and offer a quicker turnaround time. The downside is that you could end up paying a higher interest rate. And you may need to put up collateral plus provide a personal guarantee in case your business can't repay the debt.

Questions to Ask Potential Business Lenders

The best thing you can do for your business is to shop around for the right business expansion loan. Each lender has different criteria for determining your loan terms, and you may get a better deal by comparing different offers.

Specifically, here are some questions to ask the lenders you review:

What are their minimum requirements? Some lenders require that you be in business for a certain amount of time or have a minimum revenue amount. By asking this question up front, you'll avoid wasting your time with lenders whose basic requirements you don't meet.

What is their average loan size? Smaller lenders might not be used to lending the amount you need. By asking this question, you'll know if you need to ask for less or if you should work with a lender that can better handle your request.

How long does it take? If your plans are already in motion and you need the funds soon, you may not want to work with a lender that can't deliver the cash when you need it. If, however, you have time, you could be more flexible about your options.

What are the rates and fees? You might not get a clear answer about your interest rate until you officially apply, but you may be able to at least get a range. As for fees, you'll want to know before you apply if each lender charges a closing fee, prepayment penalty or any other fee that would increase the total cost of the loan.

Do they require collateral or a personal guarantee? Many business lenders require collateral, and some require a personal guarantee. But that's not always true. If you want to protect your personal assets, consider working with a lender that won't require that you personally pay off the loan if your business can't.

[Read: The Best Unsecured Business Loans of 2018 .]

How long is their commitment to fund? If you don't need the funds immediately but want to secure them for the future, you may be able to get a commitment letter from the lender to fund your loan at a later date.

"If [the commitment] is only going to be there for 90 days, it's not good, because nothing happens within 90 days," says O'Keefe. "If it's for two years, that would give you an ability to work through a cycle to show additional profitability and look to see if there's cheaper financing available."

Do Your Research to Get the Right Loan

A small business expansion loan can provide your business with the means necessary to grow, but it's important to avoid taking the decision to apply for one lightly.

In addition to vetting your business to ensure that it's ready for a new loan, take the time to examine several lenders and their loan offerings to pick the one that best addresses your business's needs. This process can take time, but it's worth it to ensure your business stays healthy.

Tags: loans , small business

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Small business loans are an integral component of the business world. Business owners rely on them to invest in new equipment or supplies, cover payroll, or manage cash flow. With a small business loan, business owners and entrepreneurs can access a lump sum of cash or a line of credit, which they can use to remain operational and continue growing their business for years to come.

The best small business loans have convenient application and funding processes, with competitive fees and flexible terms. Investopedia compared more than 20 of the top small business loan lenders based on their loan products, rates, fees, eligibility requirements, and overall transparency, among other factors. See our top-rated lenders below.

Best Small Business Loans of 2024

  • Best Lender Comparison Site: Lendio
  • Best for Business Checking: Kabbage
  • Best Revolving Line of Credit: Fundbox
  • Best for Microloans: Kiva
  • Best for SBA Loans: Fundera
  • Best for Same-Day Funding: OnDeck

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  • Our Top Picks
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  • Compare Loans

Methodology

Best lender comparison site : lendio.

  • Mobile app: Yes
  • Best perk: 24-hour funding
  • Loan/LOC amount: $25,000-$500,000

We chose Lendio as one of the best loan comparison sites based on the fact that they let you compare loan options from more than 75 lenders in one place, more than other marketplace sites. You can also have your loan funded in as little as 24 hours, which can be a major boon for business owners who need cash fast.

Compare loan offers from more than 75 lenders

Funding in as little as 24 hours

Small business loans, SBA loans, and business lines of credit available

Lendio does not lend money directly.

Eligibility requirements vary, depending on the lender.

Lendio is a loan marketplace , so it won't be lending you funds directly, and we believe they shine in this category since they let you compare loan offers with more than 75 lenders in the small business space. Having the chance to have lenders compete for your business is the best way to make sure you get a small business loan with the best rate and terms you can possibly qualify for.

Lendio was founded in 2011, yet it has grown dramatically since then. So far, they claim to have funded over 300,000 small business loans worth more than $12 billion, and they don't plan to stop anytime soon.

In terms of their small business loan offering, Lendio lets you borrow between $25,000 and $500,000, depending on your needs. You can repay your loan over one to five years, and your interest rate could be as low as 4.5%. Lendio has just a 15-minute application process, and you can get a decision on the same business day, making it an efficient place to shop for a loan.

Best for Business Checking : Kabbage

  • Best perk: Business checking
  • Loan/LOC amount: Up to $150,000

We chose Kabbage as best for business checking thanks to its comprehensive package of tools for your small business, including a checking account and mobile app.

Transparent qualification requirements

No application fees

Multiple small business loan options available

Access to a mobile app

Business checking available

You need to be in business for one year.

You must have at least $4,200 in revenue each month (or $50,000 in annual revenue).

Founded in 2008, Kabbage is a technology company that aims to provide cash flow to businesses of all sizes. While many online companies focus on small business lending, we believe Kabbage stands out due to its plethora of small business loan options and its added features and benefits. 

Kabbage offers a variety of small business loans and options for a line of credit, including both unsecured and secured options. You can also apply for industry-specific loans for trucking, pawnshops, retail, and more. Kabbage prides itself on its easy online application process and fast funding for those who are approved.

Loan amounts from Kabbage vary depending on the type of loan you apply for. Kabbage also offers business lines of credit up to $150,000 and online loans in amounts from $500 to $150,000. Other loan types might offer larger limits.

Kabbage Funding also offers repayment terms of six and 12 months, depending on your needs. With Kabbage, there are no hidden loan fees or prepayment penalties, either. You will pay a monthly fee, but they are upfront about it.

Best Revolving Line of Credit : Fundbox

  • Best perk: Decision in minutes

Fundbox focuses on offering lines of credit for business owners, and they make it possible to get prequalified online without a hard inquiry on your credit report. Their focus on business lines of credit makes them an expert on this particular type of small business funding. They offer decisions in minutes as well as funding as soon as the next business day.

Get prequalified online without a hard inquiry on your credit report

Get a decision in minutes

Only borrow what you need, unlike a small business loan that offers a lump sum

Lines of credit are only available for up to $150,000.

We chose Fundbox as the lender offering the best revolving line of credit, which allows you to qualify for a specific amount and borrow only what you need. Fundbox was founded in 2013, and the company uses technology to facilitate its B2B lines of credit with the goal of helping small businesses achieve significant success.

Lines of credit from Fundbox are only available in amounts up to $150,000, but you can get prequalified online without completing a full loan application. Once you apply, you can get a credit decision within minutes, and you’re under no obligation to accept the loan funds. 

Because Fundbox focuses on lines of credit, you get the chance to borrow only as much money as you need. Funds can transfer from your line of credit to your business checking account as soon as the next business day. This provider gives you the option to save money by paying off your balances early and ahead of schedule without any prepayment fees. 

Fundbox lets you see the fees for your line of credit upfront, and they’ll automatically debit your bank account to pay your amount due, so you won’t have to think about it. You get the option to repay your line of credit over 12 or 24 weeks.

Best for Microloans : Kiva

  • Best perk: Zero percent interest
  • Loan/LOC amount: Up to $15,000

Kiva is the best option for small business owners who only need to borrow a small amount of money. Their microloans currently come with a 0% interest rate, and you can borrow up to $15,000.

Borrow money with no interest

Get the chance to market your product to a growing community of Kiva lenders, currently 1.6 million strong

Repay your loan for up to 36 months

You can only borrow up to $15,000 with Kiva.

It can take 30 days or longer for your loan to be funded.

We chose this lender as the best option for microloans based on the fact that you can borrow money at 0% APR and repay it over three full years. Founded in 2005, Kiva aims to help underserved communities and their members qualify for the small business funding they need to get their dreams off the ground. So far, 2.1 million Kiva lenders have funded more than $1.74 billion in loans to more than 4.3 million borrowers in 77 countries around the globe. 

Interestingly, Kiva is not a bank but is instead a peer-to-peer lending platform. Kiva loans are geared to disadvantaged entrepreneurs, so investors who lend money through the platform get the chance to help people around the world.

In terms of their loan product, Kiva only lets you borrow up to $15,000. You can apply online in 20 to 30 minutes and earn the ability to advertise your funding project on their marketplace within 30 days; you get the chance to repay your loan over 36 months.

Kiva also lists easy requirements to qualify, including living in the U.S. and being at least 18 years old. To qualify for a Kiva loan, you also have to agree to use your loan for business purposes only.

Best for SBA Loans : Fundera

  • Mobile app: No
  • Best perk: Many lenders
  • Loan/LOC amount: Up to $5.5 million for an SBA loan

We chose Fundera as the best option for Small Business Administration (SBA) loans due to the fact that it offers the most SBA options, including loans through the popular SBA 7(a) loan program. You can apply for an SBA loan directly on Fundera with your loan funded through a variety of top SBA lenders.

Fundera offers an array of business loans and lines of credit, including loan offers through the SBA.

Compare loan options through multiple lenders in one place

Gauge your ability to qualify without a hard inquiry on your credit report

Fundera is a small business marketplace and not a direct lender, meaning the company won’t actually fund your loan itself.

Credit score of at least 550 required

Collateral required for some SBA loans and loan amounts

Fundera is an excellent option for consumers hoping to qualify for an SBA loan, mostly because it lets you fill out a single application and compare multiple SBA loan options in one place. Founded in 2013, Fundera is a loan marketplace instead of a direct lender. This means the company connects small business owners with the best small business loans and lines of credit on the market today, but it does not lend money itself.

Because Fundera is a marketplace, it can offer nearly any type of business loan or line of credit available today. This includes loans through the Small Business Administration, which tend to come with flexible repayment terms and affordable interest rates.

Loan amounts and repayment terms vary, but it’s possible to qualify for an SBA loan in amounts up to $5.5 million. You may also be able to repay your loan over a period of up to 25 years, although it can take two weeks to get your loan funded. Note that SBA loans may require collateral, and that’s especially true for larger loan amounts.

Best for Same-Day Funding : OnDeck

  • Best perk: Same-day funding
  • Loan/LOC amount: Up to $250,000 for a loan; up to $100,000 for a line of credit

We chose OnDeck due to the fact they offer small business loans with funding as soon as the same business day. This can be crucial for business owners who need fast access to cash to keep up with business expenses or pay for an important piece of equipment right away.

Funding available as soon as the same business day

Borrow up to $250,000 with a small business loan or up to $100,000 with a line of credit

OnDeck is transparent about loan details and eligibility requirements.

Minimum personal credit score of 600 required

Applicants need at least one year in business with a minimum of $100,000 in annual business revenue.

Since its founding in 2006, OnDeck has grown to become one of the most prominent small business lenders offering capital on the market today. We chose OnDeck as best for same-day funding due to its easy online application process and rapid approval and fulfillment of your small business loan.

OnDeck makes it easy to qualify for a line of credit in amounts from $6,000 to $100,000 or a small business loan in amounts from $5,000 to $250,000. Repayment terms on small business loans are available for up to 24 months, and you will benefit from transparent pricing and no prepayment penalties.

Meanwhile, you can repay one of OnDeck's lines of credit over 12 months, plus you get the benefit of borrowing only what you need. Either option can work for small business owners who need access to capital, and both types of funding let you apply and receive a decision within the day.

OnDeck lists some basic requirements to qualify for a business loan , which include a minimum personal credit score of at least 600 for a long-term loan. You also need to be in business for at least two years and you need to have a least $250,000 in annual business revenue to qualify.

Compare Small Business Loans

Frequently asked questions, what is a business loan.

A business loan is a type of loan business owners take out in order to access funds for inventory, payroll, and other business expenses. Business loans come in many different forms, although traditional small business loans tend to be offered in one lump sum and with a fixed monthly payment and interest rate.

However, there are other types of funding available for small businesses . Lines of credit are a popular option since they let business owners borrow only what they need. Further, invoice factoring can be helpful for some business owners who are short on cash but have plenty of unpaid invoices to use as collateral.

Small business owners can also apply for an SBA loan , which is a type of loan that is backed by the Small Business Administration. While the SBA does not loan money themselves, they connect borrowers with SBA-approved lenders that offer SBA-backed loans with competitive rates and terms.

Are You Personally Liable for an SBA Loan?

When applying for an SBA loan, you must provide an unlimited personal guarantee if you own 20% or more of the business. This means that if you fail to repay the loan because the business fails, you are still on the hook for repaying the entire loan amount. Also note that, in the case of a borrower defaulting, the lender can recover 50% to 85% of the outstanding loan balance from the SBA.

What Can I Use a Small Business Loan For?

Approved applicants can use their small business loan funds to pay for any ongoing expenses as well as payroll or investments in equipment or inventory. Small business loans are also frequently used as a means to manage or smooth out cash flow in times when expenses exceed income. If you’re a small business owner who needs to buy some equipment but you’re waiting to be paid by a few major clients, for example, it could help you keep up with your expenses and buy equipment while you wait for your invoices to be paid.

Other popular uses of small business loans include raising capital to hire new staff or to launch a new marketing or ad campaign that could help boost revenue.

We looked at more than 20 lenders who offer small business loans, small business lines of credit, and unique funding options like invoice factoring. We looked for lenders who offer transparency when it comes to their loan products and eligibility requirements, and we also looked for lenders who post fees and ongoing costs prominently on their websites. 

To find the best small business loans, we compared loan options and lenders to find companies with excellent ratings and user reviews on websites like Trustpilot. We also looked for lenders who offer high loan amounts and flexible repayment options, as well as the ability to apply and set up loan funding online.

PixelsEffect / Getty Images

Lendio. " Business Loan Types | Lendio ."

Kabbage. " Kabbage Funding Loans ."

Kiva. " How Kiva US works ."

Small Business Administration. " 504 Loan Program - Small Business Administration ."

Small Business Administration. " Loan Fact Sheet - Small Business Administration ."

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Small Business Trends

Justice department cracks down on $20m covid-19 relief fraud scheme.

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Six Texas men have been sentenced for their involvement in a scheme to illicitly secure over $20 million in forgivable loans through the Paycheck Protection Program (PPP), a lifeline established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help small businesses during the pandemic.

The individuals, identified as Hamza Abbas, 31, Ammas Uddin, 31, Arham Uddin, 27, all from Richmond; Syed Ali, 55, of Sugar Land; and Muhammad Anis, 55, and Jesus Acosta Perez, 33, both from Houston, faced varying prison terms based on their roles in the conspiracy. Their sentences range from one year and one day to three years and eight months in prison, reflecting their guilty pleas and the severity of their actions.

Court documents reveal a calculated attempt by these defendants to exploit the PPP loan process by submitting fraudulent applications on behalf of their businesses. These applications were inflated with false employee numbers, exaggerated monthly payroll expenses, and supported by counterfeit bank records and tax forms. The depth of the conspiracy further extends to money laundering, where part of the fraudulent proceeds were funneled through checks written to non-existent employees, highlighting the elaborate lengths taken to mask their illicit gains.

This sentencing follows earlier actions in January, where three additional conspirators received their sentences, and in October 2023, when seven others, including scheme ringleader Amir Aqeel, were brought to justice, culminating in Aqeel’s 15-year prison sentence.

The collaborative investigative efforts of the SBA Office of Inspector General, Federal Housing Finance Agency Office of Inspector General, Homeland Security Investigations, Federal Deposit Insurance Corporation Office of Inspector General, and the Treasury Inspector General for Tax Administration have been instrumental in unraveling this complex fraud.

This case was spearheaded by a dedicated team of trial attorneys from the Justice Department’s Criminal Division’s Fraud Section and Assistant U.S. Attorneys for the Southern District of Texas, underscoring the federal government’s commitment to prosecuting those who seek to exploit national emergency aid programs.

The PPP was designed to provide essential financial support to struggling small businesses during the COVID-19 pandemic. However, the exploitation of this program by fraudulent actors not only undermines the integrity of federal relief efforts but also diverts critical resources away from legitimate businesses in need.

Small Business Deals

The Justice Department remains vigilant against COVID-19 related fraud, encouraging the public to report any suspected fraudulent activity. This case serves as a stark reminder of the ongoing battle against financial fraud and the importance of maintaining the integrity of federal assistance programs designed to aid Americans during times of crisis.

For small business owners, this news underscores the critical importance of due diligence and the need to remain vigilant against the backdrop of increasing fraud in federal relief programs. It also serves as a reminder of the robust legal frameworks and investigative efforts in place to protect the integrity of these programs and ensure that aid reaches those who truly need it.

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Judge orders Trump to pay $355 million for lying about his wealth in staggering civil fraud ruling

A New York judge has ordered Donald Trump and his companies to pay $355 million. The judge found they engaged in a years-long scheme to dupe banks and others with financial statements that inflated his wealth. (Feb. 16)

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Former U.S. President Donald Trump vowed to appeal after a New York judge ordered him and his companies on Friday to pay $355 million in penalties, finding they engaged in a yearslong scheme to dupe banks and others with financial statements that inflated his wealth. (Feb. 16)

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Donald Trump suffered a big blow Friday as a New York judge ordered the former president and his companies to pay $355 million in penalties for what the judge described as a scheme to deceive banks and insurers by exaggerating his wealth on his annual financial statements. (Feb 16) (AP production by Javier Arciga)

Former President Donald Trump attends the closing arguments in the Trump Organization civil fraud trial at New York State Supreme Court in the Manhattan borough of New York, Jan. 11, 2024. (Shannon Stapleton/Pool Photo via AP, File)

Republican presidential candidate former President Donald Trump speaks at his Mar-a-Lago estate, Friday, Feb. 16, 2024, in Palm Beach, Fla. (AP Photo/Rebecca Blackwell)

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New York Attorney General Letitia James speaks during a press briefing, Friday, Feb. 16, 2024, in New York. A New York judge ordered Donald Trump and his companies on Friday to pay $355 million in penalties, finding they engaged in a yearslong scheme to dupe banks and others with financial statements that inflated his wealth.(AP Photo/Bebeto Matthews)

Republican presidential candidate former President Donald Trump arrives to speak at his Mar-a-Lago estate, Friday, Feb. 16, 2024, in Palm Beach, Fla. (AP Photo/Rebecca Blackwell)

FILE - Republican presidential candidate former President Donald Trump arrives with his sons Donald Trump, Jr., left and Eric Trump, to speak at a caucus night party in Des Moines, Iowa, Jan. 15, 2024. A New York judge ruled Friday, Feb. 16, 2024, against Donald Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. (AP Photo/Andrew Harnik, File)

FILE - Justice Arthur Engoron presides over Donald Trump Jr.'s testimony in his family’s civil fraud case at the New York State Supreme Court on Monday, Nov. 13, 2023 in New York. Engoron ruled Friday, Feb. 16, 2024, against Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth.(Erin Schaff/The New York Times via AP, Pool)

FILE - Pedestrians cross Fifth Avenue in front of Trump Tower, Feb. 17, 2021, in New York. A New York judge ruled Friday against Donald Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. (AP Photo/John Minchillo, File)

FILE - Allen Weisselberg, right, stands behind then President-elect Donald Trump during a news conference in the lobby of Trump Tower in New York, Jan. 11, 2017. A New York judge ruled Friday, Feb. 16, 2024, against Donald Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. (AP Photo/Evan Vucci, File)

Republican presidential candidate former President Donald Trump walks back inside after speaking at his Mar-a-Lago estate, Friday, Feb. 16, 2024, in Palm Beach, Fla. (AP Photo/Rebecca Blackwell)

FILE - Former President Donald Trump, center, sits in the courtroom before the start of closing arguments in his civil business fraud trial at New York Supreme Court, Jan. 11, 2024, in New York. A New York judge has ruled against Donald Trump Friday, Feb. 16, imposing a $364 million penalty over what the judge said was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. Trump also has been barred from serving as an officer or director of any New York corporation for three years. However, the judge backed away from an earlier ruling that would have dissolved the former president’s companies. (Michael Santiago/Pool Photo via AP)

FILE - Eric Trump, left, and Donald Trump Jr., wait for President Donald Trump to speak from the South Lawn of the White House, Aug. 27, 2020, in Washington. A New York judge ruled Friday, Feb. 16, 2024, against Donald Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. (AP Photo/Evan Vucci, File)

Former President Donald Trump attends the closing arguments in the Trump Organization civil fraud trial at New York State Supreme Court in the Manhattan borough of New York, Jan. 11, 2024. (Shannon Stapleton/Pool Photo via AP, File)

FILE — The Seven Springs, a property owned by Donald Trump, is covered in snow, Feb. 23, 2021, in Mount Kisco, N.Y. A New York judge ruled Friday against Donald Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. (AP Photo/John Minchillo, File)

FILE - An aerial view of Donald Trump’s Mar-a-Lago estate is seen Aug. 10, 2022, in Palm Beach, Fla. A New York judge ruled Friday against Donald Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. (AP Photo/Steve Helber, File)

FILE - Republican presidential candidate Donald Trump, left, puts his hand on the shoulder of his son, Eric, while speaking at a caucus night rally, Feb. 23, 2016, in Las Vegas. A New York judge ruled Friday, Feb. 16, 2024, against Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. (AP Photo/Jae C. Hong, File)

FILE - President Donald Trump waves to protesters while playing golf at Turnberry golf club, in Turnberry, Scotland, July 14, 2018. A New York judge ruled Friday, Feb. 16, 2024, against Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. (AP Photo/Peter Morrison, File)

NEW YORK (AP) — A New York judge ordered Donald Trump on Friday to pay $355 million in penalties, finding that the former president lied about his wealth for years in a sweeping civil fraud verdict that pierces his billionaire image but stops short of putting his real estate empire out of business.

Judge Arthur Engoron’s decision after a trial in New York Attorney General Letitia James’ lawsuit punishes Trump, his company and executives, including his two eldest sons, for scheming to dupe banks, insurers and others by inflating his wealth on financial statements. It forces a shakeup at the top of his Trump Organization, putting the company under court supervision and curtailing how it does business.

The decision is a staggering setback for the Republican presidential front-runner, the latest and costliest consequence of his recent legal troubles. The magnitude of the verdict on top of penalties in other cases could dramatically dent Trump’s financial resources and damage his identity as a savvy businessman who parlayed his fame as a real estate developer into reality TV stardom and the presidency. He has vowed to appeal and won’t have to pay immediately.

Trump’s true punishment could be far costlier because under state law he is also required to pay interest on the penalties, which James said puts him on the hook for a total of more than $450 million. The amount, which would be paid to the state, will grow until he pays.

Donald Trump is facing four criminal indictments, and a civil lawsuit. You can track all of the cases here .

The judge made clear, however, that the Trump Organization will continue to operate, backing away from an earlier ruling that would have dissolved Trump’s companies.

Engoron, a Democrat, concluded that Trump and his company were “likely to continue their fraudulent ways” without the penalties and controls he imposed. Engoron concluded that Trump and his co-defendants “failed to accept responsibility” and that experts who testified on his behalf “simply denied reality.”

“This is a venial sin, not a mortal sin,” Engoron wrote in a searing 92-page opinion. “They did not rob a bank at gunpoint. Donald Trump is not Bernard Madoff. Yet, defendants are incapable of admitting the error of their ways.”

He said their “complete lack of contrition and remorse borders on pathological” and “the frauds found here leap off the page and shock the conscience.”

AP AUDIO: Donald Trump fraud verdict: $364 million penalty in New York civil case.

AP correspondent Shelley Adler reports a verdict in Trump’s civil fraud trial.

FILE - Republican presidential candidate Donald Trump, left, puts his hand on the shoulder of his son, Eric, while speaking at a caucus night rally, Feb. 23, 2016, in Las Vegas. A New York judge ruled Friday, Feb. 16, 2024, against Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president's wealth. (AP Photo/Jae C. Hong, File)

Trump said the decision was “election inference” and “weaponization against a political opponent,” complaining to reporters at his Mar-a-Lago estate in Florida that he was being penalized for “having built a perfect company, great cash, great buildings, great everything.”

James, a Democrat, told reporters “justice has been served” and called the ruling “a tremendous victory for this state, this nation, and for everyone who believes that we all must play by the same rules — even former presidents.”

“Now, Donald Trump is finally facing accountability for his lying, cheating, and staggering fraud. Because no matter how big, rich or powerful you think you are, no one is above the law,” James said.

Trump still owns the Trump Organization, but he put his assets into a revocable trust and relinquished a leadership role when he became president in 2017, putting his sons Eric and Donald Trump Jr. in charge of day-to-day operations. Engoron’s ruling imposes a three-year ban on Trump serving as an officer or director of any New York company and bars his sons for two years, effectively requiring the company to find new leadership, at least temporarily.

The monetary penalties involve what Engoron said were “ill-gotten gains” that Trump attained by making himself seem richer. They include money Trump saved by securing lower loan interest rates and profits from the sale of properties that he might not have been able to develop without that financing.

Eric and Donald Trump Jr. were each ordered to pay $4 million, their share of profits from the 2022 sale of Trump’s Washington, D.C. hotel, and the company’s former longtime chief financial officer Allen Weisselberg was ordered to pay $1 million — half of the $2 million severance he’s receiving. All told, Trump and his co-defendants owe $364 million, which James’ office said grows to $464 million when interest is included. Weisselberg and another longtime company executive, Jeffrey McConney, were barred from ever holding a corporate finance or leadership role in the state.

Former President Donald Trump speaks before entering the courtroom at Manhattan criminal court, Thursday, Feb. 15, 2024, in New York. A New York judge says former President Donald Trump's hush-money trial will go ahead as scheduled with jury selection starting on March 25. (AP Photo/Mary Altaffer)

Engoron put the Trump Organization under the supervision of a independent monitor for at least three years, extending oversight he ordered after James sued Trump in 2022, and said the company must hire an independent compliance director to ensure that it follows financial reporting obligations and rules.

Engoron wrote that stripping Trump of his companies, as he’d previously ordered, was no longer necessary because the company will be under a “two-tiered oversight” with the independent monitor, retired federal judge Barbara Jones, and the compliance director keeping an eye on any activities that could lead to fraud.

FILE - Former President Donald Trump, center, sits in the courtroom before the start of closing arguments in his civil business fraud trial at New York Supreme Court, Jan. 11, 2024, in New York. A New York judge has ruled against Donald Trump Friday, Feb. 16, imposing a $364 million penalty over what the judge said was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth. Trump also has been barred from serving as an officer or director of any New York corporation for three years. However, the judge backed away from an earlier ruling that would have dissolved the former president’s companies. (Michael Santiago/Pool Photo via AP)

FILE - Former President Donald Trump, center, sits in the courtroom before the start of closing arguments in his civil business fraud trial at New York Supreme Court, Jan. 11, 2024, in New York. (Michael Santiago/Pool Photo via AP)

Because it was civil, not criminal, the case did not carry the potential of prison time.

Engoron issued his decision after a 2½-month trial that Trump turned into a frequent, albeit unorthodox campaign stage. He trekked to court nearly a dozen times, watching testimony, grousing to news cameras outside the courtroom and bristling under oath that he was the victim of a rigged legal system.

During the trial, Trump called Engoron “extremely hostile” and James “a political hack.” He also incurred $15,000 in fines for violating a gag order that the judge imposed after he made a disparaging and untrue social media post about a key court staffer.

In a six-minute diatribe during closing arguments in January, Trump proclaimed “I am an innocent man” and called the case a “fraud on me.”

Trump has boasted for years about his wealth, but James’ lawsuit alleged that his claims weren’t just harmless bragging but years of deceptive practices as he built the multinational collection of skyscrapers, golf courses and other properties that catapulted him to wealth, fame and the White House.

The suit accused Trump and his co-defendants of routinely puffing up his financial statements to create an illusion his properties were more valuable than they really were. State lawyers said Trump exaggerated his wealth by as much as $3.6 billion one year.

James brought the case under a New York law that authorizes her to investigate persistent fraud in business dealings. Trump incorporated the Trump Organization in New York in 1981.

Even before the trial began, Engoron ruled that James had proven Trump’s financial statements were fraudulent. The judge ordered some of Trump’s companies removed from his control and dissolved. An appeals court put that decision on hold.

In that earlier ruling, the judge found that, among other tricks, Trump’s financial statements had wrongly claimed his Trump Tower penthouse was nearly three times its actual size and overvalued his Mar-a-Lago estate in Palm Beach, Florida, based on the idea that the property could be developed for residential use, even though he had surrendered rights to develop it for any uses but a club.

Trump, one of 40 witnesses to testify at the trial, said his financial statements actually understated his net worth. Trump maintains that he is worth several billion dollars and testified last year that he had about $400 million in cash, in addition to properties and other investments.

Reiterating his testimony, Trump said Friday, “There were no victims because the banks made a lot of money.”

Trump and his lawyers have said outside accountants who helped prepare the statements should have flagged any discrepancies and have said the documents came with disclaimers that shielded him from liability. They also argued that some of the allegations were barred by the statute of limitations.

Engoron decided the case because neither side sought a jury and state law doesn’t allow for juries for this type of lawsuit.

The suit is one of many legal headaches for Trump as he campaigns for a return to the White House. He has been indicted four times in the last year — accused in Georgia and Washington, D.C., of plotting to overturn his 2020 election loss to Democrat Joe Biden, in Florida of hoarding classified documents, and in Manhattan of falsifying business records related to hush money paid to porn actor Stormy Daniels on his behalf.

On Thursday, a judge confirmed Trump’s hush-money trial will start March 25. A judge in Atlanta heard arguments Thursday and Friday on whether to remove Fulton County District Attorney Fani Willis from his Georgia election interference case because she had a personal relationship with a special prosecutor she hired.

Those criminal accusations haven’t appeared to undermine his march toward a rematch with President Joe Biden, but civil litigation has threatened him financially.

Last month, a jury ordered Trump to pay $83.3 million to writer E. Jean Carroll for defaming her after she accused him in 2019 of sexually assaulting her in a Manhattan department store in the 1990s. That’s on top of the $5 million a jury awarded Carroll in a related trial last year.

In 2022, the Trump Organization was convicted of tax fraud and fined $1.6 million in an unrelated criminal case for helping executives dodge taxes on extravagant perks such as Manhattan apartments and luxury cars.

James, who campaigned for office as a Trump critic and watchdog, started scrutinizing his business practices in March 2019 after his former personal lawyer Michael Cohen testified to Congress that Trump exaggerated his wealth on financial statements provided to Deutsche Bank while trying to obtain financing to buy the NFL’s Buffalo Bills.

James’ office previously sued Trump for misusing his own charitable foundation to further his political and business interests. Trump was ordered to pay $2 million to an array of charities as a fine and the charity, the Trump Foundation, was shut down.

Adriana Gomez Licon in Palm Beach, Florida, and Jill Colvin in New York contributed to this report.

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Budget 2024 introduces new and enhanced initiatives to help your business weather current challenges such as rising costs and build a competitive edge for the future.

These include immediate relief such as financing for working capital, as well as support to transform your business and workforce.

Learn more about the initiatives you can tap to access new markets, pursue sustainability, and keep growing.

From 1 April 2024, the maximum loan quantum will be raised permanently to S$500,000, to provide enhanced support for operational cashflow needs amid elevated costs.

Find out more here .

The support for domestic construction projects will be extended until 31 March 2025, with a lower maximum loan quantum of S$15 million.

The validity will be extended until 30 June 2025, to allow employers more time to support the training and upgrading of their employees and pursue business transformation projects.

The enhanced maximum loan quantum of S$10 million will be extended until 31 March 2025, to support businesses’ internationalisation efforts amid global supply chain disruptions.

From 1 April 2024, the enhanced risk share of 70% will be maintained for young businesses and businesses trading in challenged markets.

The grant will be expanded to more sectors including manufacturing, maritime, construction and data centres, to help companies defray the costs of pre-approved energy-efficient equipment.

Learn more about the grant here .

From 1 April 2024, support will be expanded to include businesses which adopt green solutions, to help them embark on their sustainability journey and reduce their carbon footprint.

Under this scheme, Enterprise Singapore provides 70% risk-share to catalyse lending from participating financial institutions.

EFS-Green is open for applications until 31 March 2026. All applications must reach Enterprise Singapore and be approved by a participating financial institution by 31 March 2026.

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Budget 2024: Green loans scheme extended, more sectors to be eligible for Energy Efficiency Grant

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SINGAPORE - With more multinational companies aiming to curtail their carbon footprint and extending these expectations to their suppliers, local firms can gain an edge by embracing sustainability.

This is why more support will be given to local small and medium-sized enterprises (SMEs) to adopt green solutions, said Deputy Prime Minister Lawrence Wong during his Budget statement on Feb 16.

“SMEs today sometimes still treat sustainability as an additional imposition and cost, but going green can be a competitive advantage,” he said.

DPM Wong, who is also Finance Minister, announced three enhancements to the Enterprise Financing Scheme (EFS), which enables Singapore businesses to access financing more readily across all stages of growth.

First, the maximum loan quantum under the EFS – SME Working Capital Loan will be permanently increased from $300,000 to $500,000. This will help SMEs to meet their increased working capital and operational cash flow needs amid elevated costs.

Second, the enhanced maximum loan quantum under the EFS – Trade Loan of $10 million will be extended till March 31, 2025. This will support businesses’ internationalisation efforts amid global supply chain disruptions.

Third, support for domestic construction projects under the EFS – Project Loan will also be extended till March 31, 2025, with a maximum loan quantum of $15 million. This will support domestic construction firms amid a challenging operating environment.

DPM Wong also announced enhancements to the Energy Efficiency Grant, which was introduced in 2022 for companies in the food services, food manufacturing and retail sectors.

These include extending the scheme to more sectors, including manufacturing, construction, maritime, as well as data centres and their users.

Companies registered and operating in Singapore with at least 30 per cent local shareholding, at least one local employee and group annual sales turnover of not more than $500 million will be eligible for support.

The scheme will also be enhanced to provide two tiers of support – a base tier to provide support for pre-approved energy-efficient equipment up to a $30,000 cap, as well as an advanced tier to support companies that wish to make larger investments to drive greater energy efficiency.

DPM Wong also noted that the Partnerships for Capability Transformation, or Pact scheme, will be enhanced in more areas, mainly capability training, internationalisation and corporate venturing.

The Pact scheme was introduced in 2010 and supports the likes of co-innovation and internationalisation projects.

“With the enhanced Pact, we aim to help more of our firms plug into global supply chains, compete in markets abroad and grow to become industry leaders in their own right,” DPM Wong said.

In his speech, he noted that local firms can partner multinational enterprises (MNEs) based in Singapore to help them grow quickly, but these companies have set high requirements and standards for firms that wish to supply to them.

He said: “We cannot force MNEs to choose only local suppliers. But we can, and we will, help Singapore enterprises to meet the high standards and to form win-win partnerships with MNEs.”

DPM Wong highlighted the aerospace industry’s high manufacturing and safety standards, which drive aerospace giants such as Rolls-Royce to be highly selective in their partnerships.

He cited local player Zincode as a company that had levelled up to partner Rolls-Royce.

Zincode was able to improve its image processing capabilities with the support of the Smart Manufacturing Joint Lab – a collaboration between the Agency for Science, Technology and Research, Rolls-Royce and Singapore Aero Engine Services – and qualify as an approved partner for inspection work at Rolls-Royce’s manufacturing facility in Singapore.

“Zincode has now successfully captured new opportunities from other companies in the aerospace sector, and benefited from an increase in sales,” DPM Wong noted.

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  • Shishu: Covering loans upto Rs.50,000/-.
  • Kishore: Covering loans above Rs.50,000/- and upto Rs. 5 lakhs.
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Eligible borrowers

  • Individuals
  • Proprietary concern.
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After Successful Registration

For shishu loan.

  • Proof of Identity – Self- attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aadhaar Card / Passport / Photo IDs issued by Govt. authority etc.
  • Proof of Residence: Recent telephone bill / electricity bill / property tax receipt (not older than 2 months) / Voter’s ID Card / Aadhar Card / Passport of Individual / Proprietor / Partners Bank passbook or latest account statement duly attested by Bank Officials / Domicile Certificate / Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
  • Applicant’s recent coloured Photograph (2 copies) not older than 6 months.
  • Quotation of Machinery / other items to be purchased.
  • Name of supplier / details of machinery / price of machinery and / or items to be purchased.
  • Proof of Identity / Address of the Business Enterprise – Copies of relevant Licences / Registration Certificates / Other Documents pertaining to the ownership, identity of address of business unit, if any.

For Kishore and Tarun Loan

  • Proof of Identity - Self attested copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
  • Proof of Residence - Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
  • Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
  • Applicant should not be defaulter in any Bank/Financial institution.
  • Statement of accounts (for the last six months), from the existing banker, if any.
  • Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
  • Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
  • Sales achieved during the current financial year up to the date of submission of application.
  • Project report (for the proposed project) containing details of technical & economic viability.
  • Memorandum and Articles of Association of the company/Partnership Deed of Partners etc.
  • In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.

Is Khadi Activity Eligible Under PMMY Loans?

Yes. MUDRA loans are applicable for any activity which results in income generation. As Khadi is one of the eligible activities under Textile sector and in case MUDRA loans are taken for income generation, the same can be covered.

Are MUDRA Loans Available For Purchase Of CNG Tempo/Taxi?

MUDRA loans would be available for purchase of CNG Tempo/Taxi, in case the applicant intends to use the vehicle for commercial purposes.

I Have A Savings Bank Account With the Bank, Would Loan Under MUDRA Be Available Based On The SB Account?

Yes. The applicant can approach the branch and apply for the loan in the format being provided by the said lending institution. The terms and conditions of the loan will be governed by the policies of the lending institution, based on the broad guidelines of RBI. The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.

Under PMMY-Shishu Loans, What Is The Turn Around Time For Processing The Loan Proposal?

As per Banking Codes and Standard Board of India (BCSBI), set up by RBI, loan applications should be disposed off for credit limit up to Rs.5 lakh within 2 weeks.

Is It Required To Submit Income Tax Returns For The Preceding 2 Years For Availing Loan Of Rs. 10 Lakh Under PMMY?

Generally, IT returns are not insisted for small value loans. However, the requirement of documents will be advised by the concerned lending institutions based on their internal guidelines and policies.

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  • Personal Loan for Womens
  • Mudra Loan for Women

A Guide to Government Loan Schemes for Women in India

The Pradhan Mantri Mudra Yojana (PMMY), which Prime Minister Modi launched in April 2015 to promote entrepreneurship through micro-credit access, has reported that women entrepreneurs have received the majority of loans since the scheme's inception.

What is the Modi Scheme for Women Loans?

The Micro Units Development and Refinance Agency (MUDRA) Loan Scheme under PMMY, or Pradhan Mantri Mudra Yojana , is a government initiative that provides loans to individuals and MSMEs through banks and NBFCs.

MUDRA Yojana is available in three loan schemes: Shishu, Kishor, and Tarun. Loans under the Mudra scheme are collateral/security-free loans made available by financial institutions with repayment terms ranging from 12 months to 5 years and flexible EMIs.

Individuals, MSMEs, enterprises, or businesses engaged in manufacturing, trading, or providing services are the only ones who can benefit from the Mudra loan for women.

Government Women Loan Schemes offered under Mudra Yojana

Women's business loans from the government of India are classified into three schemes, Shishu, Kishor, and Tarun, under the Pradhan Mantri Loan Yojana (PMMY).

Each loan scheme's loan amount is listed below:

SHISHU Loan: The Mudra Shishu Loan scheme provides loans of up to Rs. 50,000 (for start-ups and new businesses).

KISHOR Loan: Loans ranging from Rs. 50,001 to Rs. 5,00,000 are available under the Kishor Loan Scheme (for the purchase of raw materials, equipment/machinery, and business expansion for existing businesses).

TARUN Loan: The Tarun Loan Scheme provides loans ranging from Rs. 500,001 to Rs. 10,00,000 (for established businesses and enterprises).

Mudra Funding Documents Needed

Completed application with passport-sized photos

Applicant and co-applicants' KYC documents: Passport, voter identification card, Aadhar card, driving licence, PAN card, utility bills (water/electricity bills)

Proof of membership in a special category, such as SC, ST, OBC, Minority, and so on (if applicable)

Bank statement for the previous six months

Proof of business address and tenure, if applicable

Any other documents that the bank may require

How to Apply for the Mantri Loan Yojana?

Offline Pradhan Mantri Loan Yojana Application Form

Applicants interested in a woman loan yojana can obtain an application form for the Pradhan Mantri MUDRA yojana from any of the banks listed under the scheme.

The following are the steps for applying for the MUDRA loan yojana:

Step 1: Go to the nearest bank that is part of the Mudra loan scheme.

Step 2: Present your business plan or concept.

Step 3: Submit a completed MUDRA loan application form.

Step 4: Submit any additional documentation, such as identity and address proof, company address proof, balance sheets, caste certificate, IT returns, sales tax, and so on.

Step 5: Complete all other bank formalities.

Step 6: The submitted documents, as well as the MUDRA loan application, will be verified.

Step 7: If the borrower fulfils all of the requirements, the loan will be approved.

How to Apply for a Mudra Loan Online?

Borrowers interested in the Prime Minister's Loan Scheme for Ladies can simply visit the official websites of the 29 banks; business loan application forms are available online.

To apply for the Pradhan Mantri MUDRA Yojana, follow the steps below:

Step 1: Save the MUDRA loan application form to your computer.

Step 2: Simply fill out the application form with accurate and relevant information.

Step 3: Determine whether the bank is public or private.

Step 4: Complete the formalities.

Step 5: The loan will be sanctioned once the borrower has completed this process.

Mudra Loan Advantages

Mudra loans are primarily available to individuals, retailers, shopkeepers, traders, vendors, and MSMEs in the manufacturing, trading, and service sectors. The Mudra scheme is the only one that is covered by the Government of India's Credit Guarantee Schemes.

Borrowed money can also be used to make term loans, working capital loans, and overdrafts. 

Mudra loans are available to all non-farm enterprises, i.e. small or micro businesses that generate revenue.

People belonging to the SC/ST categories can also apply for Mudra loans with lower interest rates.

What is the Goal of a Startup Business Loan for Women in India Given By the Government?

Mudra Yojana under PMMY encourages women entrepreneurship, and banks and Microfinance Institutions (MFIs) provide credit facilities for women borrowers, such as lower or concessional interest rates on loans. However this scheme is not similar to  government personal loan for womens in india

Mudra currently offers a 25 basis point (BPS) discount on interest rates offered by NBFCs and MFIs to female entrepreneurs. The maximum loan amount available under the Mudra Yojana for female entrepreneurs is Rs. 10 lakh. Women's Mudra loan eligibility remains the same as it is for individuals and businesses.

Since the launch of the Mudra Women Loan Scheme, the government has become more interested in providing business loans to women. This is why, of the four mudra loan applicants, three are women. According to Finance Minister Nirmala Sitaraman, a mudra loan scheme has so far disbursed Rs.1.62 billion rupees.

To help small business owners, the Shishu mudra loan interest rate for ladies has been reduced by 2%. They anticipate that 3 million people will benefit from the interest rate deduction.

What Exactly is a MUDRA Card?

Mudra card is a type of debit card issued to Mudra loan borrowers to help them meet their working capital needs. Following the approval of a Mudra loan, the lender opens a Mudra loan account for the borrower and issues a debit card. Borrowers can withdraw funds from the total sanctioned amount in installments based on their business needs after the loan is disbursed in their bank account.

Higher women's participation is very encouraging because the government has been talking about providing access to finance to women entrepreneurs, and the Mudra scheme has been mentioned as one of the top programmes.

It is the first scheme we look at when it comes to financial awareness and financial literacy among female entrepreneurs, and the scheme has done an excellent job of making this information available to the public.

Women’s Mudra Loan Scheme - Related FAQs

No, banks or other financial institutions are not required to provide collateral or security under Mudra Finance.

For existing businesses and salaried individuals, the previous year's ITR must be presented in order to apply for business loans under the Mudra Yojana.

You can check the status of your mudra loan online by going to the respective bank's website and going to the e-mudra loan application status section.

Private and public sector banks, Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), Non-Banking Financial Companies (NBFCs), Regional Rural Banks (RRBs), and Commercial banks in both the private and public sectors provide Pradhan Mantri Mudra Loans under the RBI's sole permission and direction.

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