Mudra Loan Update: If you are thinking of starting a small business or want to expand your already running business, then the PM Mudra Scheme can be very useful for you. Under this scheme, small businessmen can get a loan of up to Rs 20 lakh without any guarantee. At the same time, approval has been given to continue the Credit Guarantee Fund (CGFMU) for micro units supporting Mudra loans through the Central Government for the next 5 years.

Now this scheme will continue until 31 March 2031. The government has approved a fund of Rs 5 thousand crore for this initiative. With this measure, the government has reduced the loan guarantee fee by 1 per cent to 0.75 per cent annually. Please let us know about it in detail. Who gets the loan, and how can the application be made?

What is the PM Mudra Scheme?
Let us tell you that the PM Mudra Scheme was started on 8 April 2015. Its direct objective is to provide financial assistance to small shopkeepers, artisans and new entrepreneurs to start or expand their business. Under this scheme, the government provides loans to non-corporate and gas farming businesses without requiring the mortgage of any property. Earlier, the government used to provide loans up to Rs 10 lakh under this scheme. In October 2024, the government increased this limit. Now entrepreneurs can get loans up to Rs 20 lakh.

Mudra loans are available in four categories.
Let us tell you that under Mudra Yojana, loans are provided according to four categories. In this, a loan up to Rs 50 thousand can be obtained under the Shishu Loan category. After this, a loan ranging from Rs 50,01 to Rs 5 lakh can be obtained under the Kishore Loan category. Under Tarun Loan category, a loan ranging from Rs 5 lakh to Rs 10 lakh can be obtained. Under the Tarun Plus loan category, a loan of more than Rs 10 lakh and up to Rs 20 lakh can be obtained.

What is CGFMU, and what is its function?
CGFMU is called the Credit Guarantee Fund for Micro Units. This is a system that gives a guarantee to the bank on the loans received by small businessmen under the Mudra Scheme. This means that if a businessman is unable to repay the loan, the bank can get the cover of guarantee. This reduces the bank’s loss and helps businessmen to get loans without any mortgage.

The CGFMU scheme is extended till 2031
Let us tell you that the Central Government has extended the CGFMU scheme for 5 years to provide financial assistance to small businessmen. For this, a fund of Rs 5 thousand crore has also been sanctioned. At the same time, the guarantee fee of Mudra loan has been reduced from 1 percent to 0.75 percent per annum. There is a possibility of getting loan assistance of about Rs 12.6 lakh crore from this system in the coming 5 years.

Guarantee fees also reduced
At the same time, the guarantee fee related to Mudra loan has also been reduced by the government. Earlier the guarantee fee was 1 per cent per annum but now it has become 0.75 per cent per annum. There has been no change in the guarantee fees of self-help groups. First the rate will be 0.25 percent per annum and next year the rate will be 0.50 percent.

How to apply for Mudra Loan?
Let us tell you that if you want to get a loan under the Mudra Scheme, then you can apply in an easy way.
For this, first you have to visit the official website of the PM Mudra Scheme.
Now you have to choose the Shishu, Kishore, Tarun or Tarun Plus category as per your requirement.
After this, the business documents and important documents have to be kept ready.
You have to contact a bank, NBFC, or another eligible financial institution.
Now you have to fill the prescribed application form and submit it.
Your form will be verified through the bank.
The bank will approve the loan after fulfilling all the conditions.
For more information you can visit the official website https://www.mudra.org.in/.