Government Free Loans: The central government is helping young people and those who want to start their own business or expand their existing business. For this, the government is providing loans up to ₹20 lakh without any collateral. This is a completely collateral-free loan, meaning no property needs to be pledged as security.
Earlier, the maximum loan amount under this scheme was ₹10 lakh, but the government has now increased the limit. During the budget speech for the financial year 2024-25, Finance Minister Nirmala Sitharaman announced an increase in the maximum loan amount under this scheme to ₹20 lakh.
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What is this scheme?
This scheme is the Pradhan Mantri Mudra Yojana (PMMY). Under this scheme, small business owners and entrepreneurs are given loans in different categories according to their business needs, so that they can expand their businesses from time to time.
Four categories of Mudra Yojana
Under the Pradhan Mantri Mudra Yojana, loans are given in four categories. In the Shishu category, loans up to ₹50,000 are available. In the Kishore category, amounts from ₹50,000 to ₹5 lakh are given. Under the Tarun category, loans from ₹5 lakh to ₹10 lakh are available, while in the Tarun Plus category, loans from ₹10 lakh to ₹20 lakh are provided.
When was the PM Mudra Yojana launched?
The Pradhan Mantri Mudra Yojana was launched by the Modi government in 2015. Its objective was to provide financial assistance to those who wanted to start their own business. Any Indian citizen can apply under this scheme. No minimum educational qualification has been prescribed for this, meaning even less educated people can benefit from this scheme.
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Documents required for the loan
To avail a loan under this scheme, an Aadhaar card, a PAN card, residence proof, passport size photograph, a simple business plan, KYC documents, and income-related documents are required.
How to apply
You can apply online for the Pradhan Mantri Mudra Yojana. You can apply for this scheme by filling out the form on the government’s official website, mudra.org.in. Alternatively, you can also apply at your nearest bank or financial institution.
