Mudra Loan - Pradhan Mantri Mudra Yojana (PMMY)

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

Buying equipment

Working capital

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:

• The loans are guaranteed by Credit Guarantee for Micro Units (CGFMU), which means that the bank will not lose money if the borrower defaults on the loan.
• The loans are eligible for interest subvention, which means that the government will pay a portion of the interest on the loan.
• The loans can be repaid over a period of 5 to 10 years.
• The PMMY has been a very successful scheme, with over 30 million loans disbursed as of March 2023. The scheme has helped to create millions of jobs and has boosted the growth of small and micro businesses in India.
• If you are interested in applying for a MUDRA loan, you can visit the MUDRA website or contact your local bank or MFI.

In addition to the information I have already provided, here are some other things you should know about the PMMY:

• The loans are available for a variety of businesses, including manufacturing, trading, services, and agriculture.
• The loans can be used to purchase equipment, inventory, or working capital.
• The loans have a repayment period of up to 10 years.
• The interest rates on the loans are subsidized by the government, so the actual interest rate that borrowers pay is much lower.
• The PMMY is a great way to get funding for your small or micro business. If you are looking for a loan to start or expand your business, I encourage you to apply for a MUDRA loan.