Page 92 - MUDRA ANUBHAV

Figure No. 28 – Purpose of Loan

Availability of Documents with Borrowers

Know Your Customer or KYC is a process which is
a part of due diligence conducted by any financial
institution in the lending process. Standard
documentation helps the financial institutions to

identify their customers better and also safeguard
against possible fraudulent activities.

In the process of MUDRA borrowings also, the
borrowers are expected to complete the KYC

documentation. It was asked to the respondents,
whether in their experience, most of these
customers has standard documents available with
them or not. The responses have been graphically

presented. (Figure No. 29). According to the study,
Aadhar Card, which is document issued by UIDAI
in India and is considered as a proof of identity and
proof of residence was available with majority of the

borrowers. Also, PAN card or Permanent Account

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