Pradhan Mantri Mudra Yojana is a major scheme launched by the Government of India, which aims to provide financial assistance to small and medium entrepreneurs. The scheme was launched on 8 April 2015 and its main objective is to promote self -employment and to empower small businesses financially. Under this scheme, loans ranging from ₹ 50,000 to ₹ 10 lakh are given without any guarantee.
The Mudra loan is especially for those who want to start their own business or increase their existing business. It contains three categories – infant, juvenile and tarun, designed according to the needs of a variety of businesses. Let us understand every important information related to Mudra loan in this article in detail.
What is Pradhan Mantri Mudra Yojana (PMMY)?
Under the Pradhan Mantri Mudra Yojana, financial assistance is provided to small businesses so that they can start or expand their business. The scheme is made for micro and small enterprises coming in non-corporate and non-agricultural sectors.
The purpose of the currency scheme:
- Providing financial assistance to small businesses.
- To promote self -employment.
- Empower women, SC/ST, OBC and other weaker sections.
- To create employment opportunities in rural and urban areas.
Brief description of money scheme
| Name of the scheme | Pradhan Mantri Mudra Yojana (PMMY) |
| Beginning date | 8 April 2015 |
| Beneficiary | Small businessman |
| Loan amount | From ₹ 50,000 to ₹ 10 lakh |
| Loan categories | Baby, Teen, Tarun |
| Non-Resources Loan | Yes |
| Interest rate | Depending on bank and loan amount |
| Loan period | 1 to 7 years |
Mudra Loan Categories
Three types of loans are given under the Mudra Scheme:
- Baby (shishu):
- This is for the initial stage businesses.
- Maximum loan amount: up to ₹ 50,000.
- Uses: For buying small equipment or for early working capital.
- Teen (Teen):
- This is for businesses that are moving beyond their early stages.
- Loan amount: ₹ 50,001 to ₹ 5 lakh.
- Uses: Business expansion or new machinery to buy.
- Tarun:
- It is for businesses that have been fully established and require large expansion.
- Loan amount: ₹ 5 lakh to ₹ 10 lakh.
- Uses: Large investment such as machinery or large projects.
Eligibility for money loan
To get a currency loan, the following eligibility conditions have to be met:
- The applicant should be a citizen of India.
- Age limit: 18 years to 65 years.
- The business of the applicant should be in the non-agricultural sector.
- Existing defaulters cannot avail this scheme.
- There should be a viable business plan.
Documents required for money loan
The following documents are required when applying Mudra Loan:
- Identification proof (Aadhaar Card, PAN Card, Voter ID etc.)
- Residence proof (electricity bill, ration card etc.)
- Passport Size Photo (2)
- Business proof (GST registration, business license etc.)
- Bank account statement
- Trade plan
Mudra Loan Online Apply Apply
If you want to apply online, follow the steps below:
- Go to the official website:
- Register:
- Create and login a new user account.
- Fill the form:
- Fill your personal and commercial information in the application form.
- Upload documents:
- Upload all the required documents.
- submit application:
- Check all the information carefully before submitting the form.
- Track the status:
- Login on the portal to know the status of the application.
Offline application process
If you want to apply offline, follow these steps:
- Go to the nearest bank branch.
- Get Mudra Loan Application Form from there.
- Fill the form and attach all documents.
- Submit the filled form to the bank officer.
- The bank will check your applications and documents.
- On getting approval, the amount will be deposited in your account.
Benefits of money loan
- No guarantee: There is no need to mortgage any kind of property in this scheme.
- Low interest rates: It provides affordable interest rate compared to other private loan schemes.
- No processing fees: No processing fee is incurred in this scheme.
- Report Tenure: Payment period can range from 1 year to 7 years.
- Incentives to women: Women entrepreneurs are given priority.
Important tips
- While applying, submit all the documents correctly.
- Select the right category according to your need.
- Provide additional information sought by the bank officer on time.
conclusion
Pradhan Mantri Mudra Yojana is a great initiative for small entrepreneurs and self -employment seekers. It not only provides them financial assistance but also helps them to become self -sufficient.
Disclaimer:
This article is written only for the purpose of providing information. The Mudra Yojana is a completely real government scheme. However, before applying, you must get complete information by visiting the concerned bank or official website.
