Today, every youth dreams of starting their own business, but a lack of money often becomes a big obstacle in this path. To solve this problem, the government has launched the Pradhan Mantri Mudra Yojana. This scheme provides loans without any guarantee for small traders, self-employed people, and new entrepreneurs. Recently, a big change has been made in this scheme, which will benefit those businessmen who want to expand their business.
Loan is available in three categories
Under the Pradhan Mantri Mudra Yojana, loans have been divided into three main categories, so that every type of businessman can take a loan according to their need:
Shishu: Loan up to ₹ 50,000, which is for small and new businessmen.
Kishor: Loan from ₹ 50,000 to ₹ 5 lakh, which is for expanding their business.
Tarun: Loan from ₹5 lakh to ₹10 lakh, which is for expanding the business on a large scale.
Tarun Plus
Recently, the Modi government has made a new change in this scheme. Now, a new category named ‘Tarun Plus’ has been added, in which the loan limit has been increased from ₹10 lakh to ₹20 lakh. This is a great opportunity for those businessmen who have already taken a loan under the ‘Tarun’ category and have successfully repaid it. The government claims that this scheme has lifted 13.5 crore people out of poverty in the last few years and included them in the new middle class.
Application Process and Eligibility Criteria
Applying for the Mudra scheme is quite easy, and it can be done through government banks, private banks, NBFCs, and MFIs.
Eligibility
Any new or existing businessperson, especially those who have repaid their old ‘Tarun’ loan, can apply for a ‘Tarun Plus’ loan.
Application
You can apply by visiting your nearest bank branch or financial institution.
Documents
Identity proof (such as Aadhaar and PAN card), business details, and project report (for new businesses) are required.
Interest rate and other charges
The interest rate in this scheme is not fixed, but it depends on the bank’s policy, your CIBIL score, and business risk. Many banks also offer a discount of 0.25% to 0.50% in the interest rate to women entrepreneurs. Apart from this, banks may also charge processing fees on the loan, but it is very low or waived off.
This scheme is not only promoting small businesses but also creating new employment opportunities at the local level, helping in the economic progress of the country. This is a golden opportunity for all those entrepreneurs who dream of becoming self-reliant.