PM Mudra Loan 2024: Rs 20 lakh will be available under Pradhan Mantri Mudra Yojana, how to apply – StudyToper

Pradhan Mantri Mudra Yojana (PMMY) is an important scheme of the Government of India that provides financial assistance to small and micro entrepreneurs. The main objective of this scheme is to promote small businesses in the non-corporate, non-agriculture sector. Recently, the government has increased the limit of loan amount given under this scheme to Rs 20 lakh, which was earlier Rs 10 lakh.

This step is an important effort towards accelerating the economic development of the country and creating new employment opportunities. This increased loan limit will help small entrepreneurs to expand their business and purchase new equipment. Additionally, this step will also strengthen the startup ecosystem and provide opportunities to youth to realize their business ideas.

Brief description of Pradhan Mantri Mudra Yojana

What is Mudra Yojana?

Pradhan Mantri Mudra Yojana (PMMY) is an initiative which was launched by the Government of India on 8 April 2015. The main objective of this scheme is to provide loans to small businessmen and entrepreneurs easily and without any guarantee. The full name of MUDRA is “Micro Units Development and Refinance Agency”.

Under this scheme, individuals can avail loans to start their own business or expand the existing business. The scheme especially focuses on economically empowering the youth, women and weaker sections of the society.

Categories of Mudra Scheme

Loans under Mudra Yojana are divided into four categories:

1. Shishu: Loan up to Rs 50,000 is given in this category.
2. Kishore: In this, loans ranging from Rs 50,000 to Rs 5 lakh are available.
3. Tarun: Loans ranging from Rs 5 lakh to Rs 10 lakh are given in this category.
4. Tarun Plus: This is a new category in which loan can be availed from Rs 10 lakh to Rs 20 lakh.

Benefits of Mudra Yojana

1. Loan without guarantee: The biggest feature of this scheme is that it provides loan without any guarantee.
2. Low interest rates: The interest rates on Mudra loans are relatively low, which is beneficial for businessmen.
3. Flexible Repayment Tenure: The repayment tenure of the loan ranges from 3 to 5 years, decided as per the nature of the business.
4. Wide coverage: The scheme covers a variety of small businesses, such as shopkeepers, fruit-vegetable vendors, truck operators, food service units, etc.
5. Digital Facility: Loan amount can be availed digitally through Mudra Card.

Eligibility for Mudra Scheme

1. The age of the applicant should be between 18 to 65 years.
2. The applicant must be an Indian citizen.
3. The applicant should have a small or micro enterprise in the non-agricultural sector.
4. The applicant’s business plan must be viable.
5. The applicant should not be a defaulter of any bank.

Documents required for Mudra Yojana

1. Identity Proof: Aadhar Card, PAN Card, Voter ID, Driving License etc.
2. Address Proof: Ration Card, Electricity Bill, Telephone Bill etc.
3. Business related documents: Business registration certificate, license etc.
4. Bank Statement: Last 6 months bank statement.
5. Photograph: Recent passport size photograph of the applicant.
6. Project Report: Detailed plan of the proposed business.

Application Process for Mudra Scheme

1. Online Application:
   • Official website of Mudra Yojana www.mudra.org.in Go to.
   • Click on “Apply Online” option.
   • Select your category (Infant/Teenager/Tarun/Tarun Plus).
   • Fill the application form and upload the required documents.
   • Submit the form and note down the application number.
2. Offline Application:
   • Visit the nearest bank or financial institution.
   • Ask for application form for Mudra Yojana.
   • Fill the form completely and submit it along with the required documents.
   • Inquire about the status of the application from the bank officer.

Activities financed under Mudra Scheme

Mudra Yojana provides financial assistance to various types of small businesses. Some of the major activities that can be funded under this scheme are:

1. Retail Business: Grocery stores, clothing stores, mobile/electronics stores, etc.
2. Service Sector: Salon, Beauty Parlour, Gym, Tailoring Shop, Dry Cleaning etc.
3. Small scale industries: Handicrafts, handlooms, food processing units etc.
4. Transport Services: Auto rickshaws, taxis, e-rickshaws, small goods vehicles etc.
5. Agriculture allied activities: Fisheries, beekeeping, animal husbandry, dairy etc.

Impact and importance of Mudra Yojana

Pradhan Mantri Mudra Yojana has significantly impacted the economic scenario of India. Some of its major effects are:

1. Employment Generation: This scheme has provided self-employment opportunities to lakhs of people.
2. Financial Inclusion: This scheme is helping to bring people deprived of banking services into the mainstream.
3. Women Empowerment: A large number of beneficiaries of Mudra loans include women, which is a step towards economic independence.
4. Rural Development: This scheme is promoting entrepreneurship in rural areas.
5. Formalization of the informal sector: By giving financial assistance to small businesses, this scheme is helping to formalize the informal sector.

Disclaimer

This article is for informational purposes only. Although Pradhan Mantri Mudra Yojana is a genuine government scheme, the loan amount of Rs 20 lakh mentioned in the title of this article is not correct at present. The maximum loan amount under the Mudra scheme is still Rs 10 lakh. Please consult official government sources or authorized financial institutions for accurate and up-to-date information. The terms and conditions of the scheme may change from time to time, so it is important to check the latest guidelines before applying.