If you want to start your own business but a lack of capital is hindering you, the Central Government’s Pradhan Mantri Mudra Yojana (PMMUDRA Yojana) is a great opportunity for you! This groundbreaking scheme aims to provide financial assistance to small entrepreneurs, startups, and self-employed individuals without any significant guarantees. Under the Mudra Yojana, you can easily obtain a loan of up to ₹10 lakh to give wings to your dreams. Let’s learn about the loan categories available, the amount available, and the simple application process.
Loans under the PMMUDRA Scheme
The PMMUDRA scheme was launched in 2015 to provide easy access to bank loans for small businesses. Loans under this scheme are divided into three categories, tailored to the needs of the businesses. The Shishu category offers loans up to ₹50,000 for brand-new or early-stage businesses. The Kishore category offers loans ranging from ₹50,000 to ₹5 lakh, which is for established businesses looking to expand. The third and largest category, Tarun, offers loans ranging from ₹5 lakh to ₹10 lakh, and is for established businesses planning significant expansion.
Where to Apply for a Loan
You can obtain this loan from any bank, non-banking financial company (NBFC), or microfinance institution. The biggest advantage of these loans is that they don’t require any significant collateral and offer reasonable interest rates. This loan can help you open a shop, start a service business, set up a small-scale manufacturing unit, or expand an existing business. Note that if an individual successfully repays a loan under the Tarun category, they can receive a loan of up to ₹20 lakh under the ‘Tarun Plus’ category.
What is the application process for the PM Mudra Yojana
Applying for this scheme is a straightforward and simple process, which is being made even easier through digital means. To apply, you must first visit your nearest bank branch or visit the bank’s online portal. You must fill out an application form, entering business details, estimated costs, and the required loan amount. Additionally, you must submit documents such as identity proof, address proof, passport-size photos, and business-related information.
The bank approves the loan after reviewing your application. To save time, many banks are now completing this process entirely online. Once the loan is approved, the amount is deposited directly into your bank account. If you are dreaming of starting a business, then this scheme can prove to be a great and decisive opportunity for you.