Business Loan: The central government is continuously taking steps to empower youth and small businesses to become self-reliant. In this regard, the government has increased the loan limit under the Pradhan Mantri Mudra Yojana (PMMUDRA) to 20 lakh rupees. This scheme aims to help those who want to start their own business or expand existing businesses. Significantly, this loan does not require any guarantee.
A major announcement in the budget
Previously, the maximum loan amount under the PMMUDRA Yojana was 10 lakh rupees. However, during the budget speech for the financial year 2024-25, Finance Minister Nirmala Sitharaman announced an increase in this limit to 20 lakh rupees. This decision is expected to provide significant relief to small and medium-sized businesses.
What is PMMUDRA Yojana?
The PMMUDRA Yojana was launched in 2015. Its objective is to promote self-employment in the country and provide easy finance to small businesses. This scheme is specifically designed for those who face difficulties in obtaining loans from banks.
Loans are available in four categories
Under the Mudra scheme, loans are divided into four different categories. The Shishu category provides loans up to ₹50,000 for starting a small business. The Kishor category is for those who need between ₹50,000 and ₹5 lakh. The Tarun category offers loans ranging from ₹5 lakh to ₹10 lakh. The new Tarun Plus category now offers collateral-free loans ranging from ₹10 lakh to ₹20 lakh.
Who can apply?
The most significant feature of this scheme is that it does not require any specific educational qualification. Any Indian citizen, even an eighth-grade pass, can apply under this scheme.
What documents are required?
When applying for a Mudra loan, you must provide your Aadhaar card, PAN card, residence certificate, passport-size photo, business plan, KYC documents, and income proof.
How to Apply
Applying for the Pradhan Mantri Mudra Yojana can be done both online and offline. Interested individuals can apply online by visiting the official website at mudra.org.in. Alternatively, you can also apply by visiting your nearest bank or financial institution.
Adarsh P
Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...
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