If you are an entrepreneur but cannot grow your business because of lack of money, and you are not able to get a loan, then Pradhan Mantri Mudra Yojana (PMMY) can help you. This is a scheme of the Government of India through which loans are given to small businessmen.
Mudra is a type of NBFC (non-banking financial company). It gives funds to banks, MFIs, small finance banks, and other NBFCs that provide loans to small businessmen. In this way, small entrepreneurs who need money can get loans. The special thing about this scheme is that you do not need to give any guarantee or security.
If you want to take a loan under Pradhan Mantri Mudra Yojana (PMMY) to grow your business but do not know the process, then here you will get full information about it. We will also tell you how much loan you can get under this scheme.
PM Mudra Yojana gives loans in four parts. In Shishu Mudra Loan, you can get up to ₹50,000. In Kishor Mudra Loan, you can get ₹50,000 to ₹5 lakh. In Tarun Mudra Loan, you can get ₹5 lakh to ₹10 lakh. In Tarun Plus Mudra Loan, you can get ₹10 lakh to ₹20 lakh.
This loan is given to small shopkeepers, home businesses, women, farmers, livestock farmers, small artisans, startups, MSME units, street vendors, retailers, traders, small manufacturers, partnership firms, and LLPs.
You can apply offline or online. For offline, go to the nearest bank or NBFC office. Take the Mudra loan form, fill it, attach the documents, and submit it. For online, go to the Mitra portal. Register, fill the loan form, upload documents, select bank or NBFC, and submit. The bank or NBFC will then contact you. The form for Shishu Mudra Loan is different, but the form for Kishor and Tarun loans is the same.
Some documents are needed for this loan. Aadhaar and PAN card are must. You can also use passport, voter ID, or driving license. If you are SC, ST, or OBC, you need a caste certificate. A 6-month bank account statement is also needed. If you have a business, you may need to show how old it is and its details.
After applying, it may take 7 to 15 days to get the loan. Sometimes it can take more time. The interest rate is not fixed by Mudra. Banks and NBFCs decide it. For example, Union Bank takes 10.75% to 12%, Canara Bank takes 10.30% to 12%, and Bank of Baroda takes 9.40% to 11.75%.