The PMMY is a loan scheme launched by the Government of India in 2015 to provide loans to non-corporate, non-farm small and micro enterprises (SMEs). The loans are provided under three categories:
Shishu: Up to Rs. 50,000
Kishore: Rs. 50,000 to Rs. 5 lakh
Tarun: Rs. 5 lakh to Rs. 10 lakh
The loans can be used for a variety of purposes, including:
Setting up a new business
Expanding an existing business
Meeting other business expenses
The loans are provided by commercial banks, regional rural banks (RRBs), small finance banks (SFBs), microfinance institutions (MFIs), and non-banking financial companies (NBFCs). The interest rates on the loans are subsidized by the government, so the actual interest rate that borrowers pay is much lower.
To be eligible for a MUDRA loan, borrowers must meet the following criteria:
They must be an Indian citizen.
They must have a valid PAN card.
They must have a business plan.
They must have a good credit history.
The application process for a MUDRA loan is simple and straightforward. Borrowers can apply online or at any bank or MFI that offers MUDRA loans. The application process typically takes a few weeks to complete.
The MUDRA loan scheme is a great way to get funding for your small or micro business. The loans are easy to apply for and the interest rates are subsidized by the government. If you are looking for a loan to start or expand your business, the MUDRA loan scheme is a great option.
Here are some additional details about the MUDRA loan scheme:
In addition to the information I have already provided, here are some other things you should know about the PMMY: