Business Loan for Traders: Know All About it

Business traders require financial assistance for various purposes. Business loans imply Loans required for start-up, boosting working capital, purchasing goods, or renovating your Business promises.

Business Loan for Traders Udyog Aadhar

  • For startup loans, entrepreneurs often have to visit the offices of several investors. Trying to explain their startup ideas. It is time-consuming and often you don’t get the desired positive result. To overcome this, the government of India introduced various Schemes. With a motive to grow small, micro, and medium businesses to compete with international competition efficiently.
  • To promote Startups and support small and middle-class Businesses Indian Government started a new scheme in which they were named under business loans for traders Udyog Aadhar. This scheme benefits the Businessmen who are starting a new business or have recently started one.
  • To extend the benefits of various government schemes at one stop for SSI units under MSME Act 2006.
  • To safeguard small industries and SSI units from the financial harassment of large-scale industries.

How to Apply for Udyog Aadhar?

Only micro, small or medium enterprises (MSME) can apply for it. Once you register for Udyog Aadhar, you become eligible for various schemes and are insensitive under this category.

It’s a very simple process. The process can be done online as well as offline. There are no fees required for filling this form.  Earlier it was quite a tedious process. But now, the government has made it easy, and you just require a few of your documents including an Aadhar card, mobile no., and email address. Within a few days, you get an MSME certificate having an industry base number.

Schemes under Udyog Aadhar

There are different financing agencies through which you get loans under Udyog Aadhar. Depending upon your business type and the amount of loan required you get a loan from a particular financing agency under Udyog Aadhar.

MUDRA Scheme

Micro Units Development Refinance Agency is a government-sponsored agency that distributes loans through Banks and NBFCs.

Any Indian citizen who wants to start a business in any sector other than agriculture can apply for a MUDRA Loan.

The maximum financial assistance provided under this scheme is 10 lakhs.

The key benefits of MUDRA loans are that here usually loans are provided without guarantee and the repayment period can be extended up to 5 years.

Different types of the loan under MUDRA schemes are-

  • Shishu Loan – up to 50,000
  • Kishor Loan – up to 5 lakh
  • Tarun Loan– 5 lakhs to 1 lakh

SIDBI loans

  • These loans are for businesses that have scaled up to a certain level and require financial assistance for capital expansion.
  • Loans under this scheme are procured through the Small Industries Development Bank of India (SIDBI).
  • Amount of 5 lakhs to 10 lakhs is provided for operational needs and equipment financing.


  • This is an A scheme for promoting innovation, Rural Industry, and Entrepreneurship for agro-based industries.
  • Businesses registered with Udyog Aadhar can get a loan of up to 1 crore for infrastructure development and up to 50 thousand Rupees for setting up plants and machinery.

How to Apply for A Loan?

  • You need to select an appropriate bank under financing agencies of the government and fill the application form for a loan.
  • Basic documents required for filling for Loans.
  • You need to own a Udyog Aadhar
  • Identity proof – Aadhar Card, the driving license
  • Proof of Caste- Enter your Caste, sub-caste, and submit the proof required.
  • Address proof- Driving license, Voter Id card
  • Bank account Details – A statement of your bank account for the previous year is required along with a Cancelled Cheque. To ensure that you can repay the loan.
  • Information about Your Business- Location of your business, name of your industry, working of the industry, a legal entity related to business.
  • Lastly, you have to give information about the investment you have done in machinery and equipment and also include the value of the land on which the business is established.

Once you apply to your respective bank your application is verified, a few more processes might be required and after complete verification, you get your loan approved.

So, above we have mentioned all the details related to Udyog Aadhaar and how you can avail loan through it. Get the benefit of this loan given by the Government and expand your startups.

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