If you are an aspiring entrepreneur looking to start or expand your business, the
Pradhan Mantri Mudra Yojana (PMMY) can be a great opportunity. Launched in
2015, the scheme aims to
promote entrepreneurship and provide financial support to small businesses and micro-enterprises across India.
What is PM Mudra Yojana?
The
PM Mudra Yojana provides
loans without collateral to non-corporate small businesses, including traders, artisans, and self-employed individuals. It helps bridge the financial gap for micro and small enterprises that struggle to get credit from traditional banks.
Loan Amounts and Categories
The scheme divides loans into three categories based on the data-size of the business and funding needs:
Shishu: Loans up to ₹50,000 for startups or micro-enterprises in the initial stage.
Kishor: Loans from ₹50,001 to ₹5 lakh for businesses that are growing and need additional working capital.
Tarun: Loans from ₹5 lakh to ₹20 lakh for well-established businesses looking to expand operations.
Eligibility Criteria
To apply for a Mudra loan, you must meet the following criteria:Must be an
Indian citizen.Own a
non-farm micro or small enterprise.Age requirement: Generally between
18 to 65 years.Must have a viable
business plan for which the loan is required.
How to Apply for a Mudra Loan
Choose a bank or Financial Institution: The loan can be obtained through
commercial banks, regional rural banks (RRBs), small finance banks, and NBFCs registered with Mudra.
Prepare Required Documents: Typically includes
Aadhaar card, PAN card, business proof, and address proof.
Submit Application: Visit the bank branch or apply online via the
Mudra portal (www.mudra.org.in).
Loan Approval and Disbursal: After verification of documents and business plan, the loan is sanctioned and funds are disbursed.
Benefits of PM Mudra Yojana
No collateral required for loans under ₹20 lakh.
Low interest rates compared to other unsecured business loans.
Flexible repayment tenure depending on the loan amount and business viability.Encourages
entrepreneurship and self-employment, boosting economic growth.
Conclusion
The
PM Mudra Yojana is an excellent initiative for budding entrepreneurs who want to start their own business or expand existing operations. With loans up to
₹20 lakh, minimal documentation, and flexible repayment options, it empowers individuals to achieve financial independence and contribute to the growth of the economy.
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