To promote employment, the Modi government launched the Pradhan Mantri Mudra Loan Yojana on 8 April 2015. Its main objective is to provide financial help to those youth who are not able to start their own business due to lack of money. The main reason for bringing this scheme is to provide easy loans to people to start a small business.
But, nowadays some cyber thugs are cheating people in the name of low interest and quick loans. Therefore, it is very important to know where and how to get a Mudra loan and what is its complete process. Let’s understand about it in detail. This information will prove to be important in your journey to become a safe and successful entrepreneur.
What is Pradhan Mantri Mudra Loan Yojana
Under the Pradhan Mantri Mudra Loan Yojana, a loan of up to ₹ 20 lakh is available to start a small business. It includes people like street vendors, fruit and vegetable sellers, small shopkeepers, truck drivers, food service operators, and machine operators. The special thing about this loan is that it does not require any guarantee. This scheme has been in force since 2015 and under this, financial help is given to small non-corporate and non-agricultural businesses.
The person taking the loan is given up to 5 years to repay this loan. This loan can be taken from institutions like commercial banks, RRBs (regional rural banks), small finance banks, MFIs (microfinance institutions), and NBFCs (non-banking financial companies). This scheme is a powerful tool for those who want to start their own business by overcoming financial obstacles.
Loans divided into four categories
Under the Pradhan Mantri Mudra Yojana, loans are divided into four categories. Loans up to ₹ 50,000 are available in the Shishu category. Loans ranging from ₹ 50,000 to ₹ 5 lakh are given in the Kishore category. Tarun category offers loans ranging from ₹5 lakh to ₹10 lakh, while Tarun S category offers loans ranging from ₹10 lakh to ₹20 lakh. This classification helps meet the financial needs of different types of businesses.
Eligibility and required documents
Under this scheme, a loan can be taken to start a new small business or run an old business, but there are some conditions for this. The applicant must be an Indian citizen and must have an Aadhaar card, PAN card, and bank account. Loans will be given only to non-corporate businesses. Also, a complete plan of the business for which the loan is being taken should be ready. By fulfilling these conditions, you can easily avail the benefits of this scheme.
Know easy online and offline methods
To get a Mudra loan under the Pradhan Mantri Mudra Yojana, you can contact your nearest bank or non-banking financial institutions (NBFC) branch, or you can also apply online. For this, you have to follow these steps:
First of all go to the official website of Mudra Loan www.mudra.org.in, where you will find options for all categories.
Click on the loan option according to your need.
After this click on the link of the application form.
Download the application form in PDF and take its printout.
Fill out the form correctly and attach all the required documents.
Finally, submit this form to the nearest bank or microfinance institution branch.
After all the documents are verified, your loan will be approved.
This simple process will enable you to get financial assistance to start your business.