Pradhan Mantri Mudra Yojana: The Pradhan Mantri Mudra Yojana was launched in 2015 with the aim of providing a strong financial base to small businesses in the country. The scheme aims to reach people who run small businesses with limited resources or want to start new ventures but are unable to obtain bank loans due to a lack of collateral. The government believes that this scheme is providing India’s emerging new middle class with the opportunity to become self-reliant and is motivating many people towards self-employment.
Business Assistance
The Mudra Yojana is divided into three categories to suit the needs of businesses ranging from small to large. The Shishu category is for those who want to start a small business and need financial assistance of up to 50,000 rupees. The Kishor category provides loans ranging from 50,000 to 5 lakh rupees, which helps in business expansion. The Tarun category provides assistance ranging from ₹5 lakh to ₹10 lakh for entrepreneurs looking to expand their business on a larger scale.
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This much loan is available
The government recently made a major change to the scheme, expanding the Tarun category. The new Tarun Plus option provides entrepreneurs with loans ranging from ₹10 lakh to ₹20 lakh. This facility is specifically for entrepreneurs who have previously taken and successfully repaid a Tarun category loan. This initiative will provide additional financial support to entrepreneurs preparing to take their business to the next level. According to the government, Mudra loans have so far lifted millions of people out of poverty and into the new middle class, strengthening small industries and increasing employment opportunities.
How to Apply
Anyone looking to start a new business or expand an existing business can apply for any category of the scheme. The application process can be completed through public and private bank branches, NBFCs, and microfinance institutions. Identification documents, business information, and a project report are required for the new venture. Proper documentation and a well-organized application speed up the loan process.