If you want to start your own business or are looking for financial assistance to expand your existing business, Pradhan Mantri Mudra Yojana (PMMY) can be a great opportunity for you. This scheme launched by the Government of India provides business loans to small traders, startups, shopkeepers and self-employed people without any major guarantee.
Under this scheme, eligible applicants can get loans ranging from ₹50,000 to ₹10 lakh. Let us know the complete information related to the scheme.
What is Pradhan Mantri Mudra Yojana?
Pradhan Mantri Mudra Yojana was started on 8 April 2015. The main objective of this scheme is to provide easy financial assistance to the micro and small enterprises of the country, so that they can start or expand their business.
This scheme is specially designed for small businesses operating in the non-agriculture sector. Through Mudra Loan, the government is trying to promote entrepreneurship and create new employment opportunities.
Loans available under PM Mudra Yojana
Mudra scheme is divided into three categories according to the need of the business.
| loan category | loan amount |
|---|---|
| Shishu | up to ₹50,000 |
| Kishore | ₹50,001 to ₹5 lakh |
| Tarun | ₹5 lakh to ₹10 lakh |
Shishu Loan
For people starting new business.
Kishore Loan
For entrepreneurs who want to grow their business.
tarun loan
For businesses looking to expand or invest on a large scale.
Major benefits of the scheme
- Business loan up to ₹10 lakh
- Facility without huge collateral
- Financial assistance to small businesses
- Promotion of self-employment and startups
- easy application process
- help in employment generation
- Beneficial for both rural and urban areas
Who can apply?
The following people can apply for Mudra Yojana:
- small traders
- shopkeeper
- startup entrepreneur
- People associated with service sector
- transport business operator
- Beauty parlor and salon operator
- Tailoring and Boutique Business
- Food Processing Unit
- small manufacturers and artisans
Keep in mind that the business should belong to non-agriculture sector and its financial requirement should not exceed ₹10 lakh.
Required Documents
The following documents may be required during loan application.
identity proof
- Aadhar card
- PAN card
- voter id card
- driving license
- Passport
address proof
- Aadhar card
- Voter ID
- driving license
- Passport
other documents
- Bank statement of last 6 months
- Latest ITR (if available)
- business plan
- business certificate
- proof of office or residence
- loan application form
What will be the interest rate?
The interest rate on Mudra Loan may vary across banks and financial institutions. Usually the interest rate is decided based on the applicant’s profile, business and bank policies.
how to apply?
online application
- Visit the official website of any participating bank.
- Fill the Mudra Loan Application Form.
- Upload the required documents.
- submit application.
- The loan process will be completed after document verification.
offline application
- Visit the nearest bank branch or financial institution.
- Get Mudra Loan Application Form.
- Fill all the required information.
- Submit by attaching the documents.
- The loan can be approved after verification by the bank.
Objectives of Pradhan Mantri Mudra Yojana
| Objective | Benefit |
|---|---|
| promote entrepreneurship | Help in starting new businesses |
| financial inclusion | Bringing banking services to common people |
| employment generation | creating new employment opportunities |
| development of small industries | help in business expansion |
| assistance to weaker sections | Priority to SC/ST and other eligible categories |
Frequently Asked Questions (FAQs)
What is PM Mudra Yojana?
This is a scheme of the Government of India under which loans up to ₹ 10 lakh are given to small and micro businesses.
What is the maximum amount of Mudra Loan?
A maximum loan of up to ₹ 10 lakh can be obtained under the scheme.
Can people starting a new business apply?
Yes, people starting new business can apply under Shishu category.
Is it necessary to give guarantee for Mudra Loan?
In most cases, large collateral is not required, but the final decision rests with the bank.
What is the loan repayment period?
The repayment period of the loan is decided according to the bank and the loan terms, which can generally range from 1 to 5 years.
What documents are required for application?
Aadhaar card, PAN card, bank statement, identity and address proof and business related documents may be required.
conclusion
Pradhan Mantri Mudra Yojana is a great opportunity for those who want to make their business dreams come true. Whether you want to start a new business or expand your existing business, PM Mudra Yojana can provide the financial support you need. Before applying, be sure to get complete information about eligibility, documents and bank conditions.
