Mudra loan is provided to individuals who need funding for their small businesses. The idea of the loan is to encourage entrepreneurs who want to develop their business activities and become employment generators. The beneficiaries can get up to INR 10 Lakhs for micro, small and medium enterprises.
To avail the loan, one must produce the business plan and approach a bank for application. The borrowers need to submit the proof of business enterprise, machinery quotation and name of the suppliers. The loan can be taken for buying a commercial vehicle provided it is used for your business operations exclusively. For more details, you may have to approach the bank and talk to the lender about the purpose of buying a commercial vehicle.