How to apply for a PM Mudra Yojana loan online: The Narendra Modi-led central government is providing financial assistance to young people and aspiring entrepreneurs planning to start their own businesses. Under this initiative, the government offers loans of up to ₹20 lakh. This scheme supports not only the launch of new businesses but also the expansion of existing ones. Known as the PM Mudra Scheme, a key feature is that it requires no guarantee, as these are collateral-free loans.

Four Categories Defined by the Government
Under the central government’s PM Mudra Scheme, collateral-free loans of up to ₹20 lakh are provided. The loan limit was previously ₹10 lakh, but it was doubled to meet beneficiaries’ needs and respond to the scheme’s popularity. Under PMMY, loans are granted across four categories, enabling entrepreneurs to expand their businesses over time.

Understanding the Loan Categories
The PM Mudra Scheme offers loans across four specific categories. The first is the ‘Shishu’ category, providing up to ₹50,000. Next is the ‘Kishor’ category, under which loans ranging from ₹50,000 to ₹5 lakh are approved. The ‘Tarun’ category offers loans between ₹5 lakh and ₹10 lakh, while the ‘Tarun Plus’ category provides loans ranging from ₹10 lakh to ₹20 lakh.

Eligibility: 8th-Grade Pass Can Apply
There is no specific educational qualification requirement for the PM Mudra Scheme; even individuals who have passed the 8th grade can apply and receive financial assistance. Any citizen of the country can avail of this benefit. The PM Mudra Scheme was launched in 2015 for individuals who want to start their own businesses.

Business Plan is Essential
To obtain a loan under this scheme, you must have a business plan. You can apply for a Mudra loan through a bank. After you apply, the bank evaluates factors such as your income, business details, credit history, documentation, and repayment capacity. Once approved, the bank opens the loan account. The interest rate depends on the bank and the applicant’s profile.

Where can you apply?
To apply for a loan under the PM Mudra scheme, you will need specific documents, including your Aadhaar card, PAN card, proof of residence, passport-sized photographs, a business plan, KYC documents, and an income certificate. You can apply online by visiting https://www.mudra.org.in/. Alternatively, you can visit a bank branch to submit your application under the scheme.