The Pradhan Mantri Mudra Yojana aims to provide financial assistance to small-scale businesses. Under this scheme, micro and small businesses are provided with loans according to their needs. The scheme is divided into different categories so that both new and existing businesses can benefit. From entrepreneurs starting with small capital to those planning business expansion, options are available for everyone.
Read More- Amazon Bumper Offer! Get Rs 10000 Discount On Best Realme GT 7 Pro 5G
The main objective of the Mudra Yojana is to promote self-employment and strengthen economic activities in rural and urban areas. The biggest advantage is that no collateral or guarantee is required.
Scope of Loans under the Mudra Yojana
The loan amount under this scheme is divided into four stages. In the initial stage, a limited amount is provided for small businesses, while larger amounts are made available for business expansion later on. Upon reaching the maximum limit, the beneficiary can avail a loan of up to Rs. 20 lakhs, which can be used to purchase machinery, raw materials, or meet other business needs.
Application Process for PM Mudra Yojana
The application process under the Mudra Yojana has been simplified so that common people can easily benefit from it. Both online and offline application options are available. Interested individuals can apply through either medium as per their convenience.
How to Apply Offline
For an offline application, the applicant needs to visit their nearest bank or financial institution. The Mudra loan application form can be obtained there. The form must be completed with accurate information, and the necessary documents must be attached. After verification of the records by the bank, further action is taken on the application.
Online Application Process
To apply online, one needs to register on the official Mudra portal. After that, the application form is filled and the necessary documents are uploaded. After selecting the bank or NBFC, the form is submitted. Upon acceptance of the application, the concerned institution contacts the applicant to complete the further process.
Documents Required for Mudra Loan
Some basic documents are required to avail the benefits of the Mudra Yojana. These include identity and address documents, proof of income, and a clear business plan. Submitting accurate and complete documents speeds up the loan approval process.