Many people dream of leaving the hassles of a job and starting their own business. However, lack of funds often becomes a hurdle.
The government’s Pradhan Mantri Mudra Yojana (PMMY) can solve this issue by providing collateral-free loans of up to ₹10 lakh for non-corporate and non-agricultural businesses.
Here’s how you can apply and benefit from this scheme.
Eligibility Criteria for PM Mudra Yojana
The applicant must be a citizen of India.
There should be no default history with banks.
The loan should be taken for a non-corporate business.
The applicant must have a bank account.
The age of the applicant should be 18 years or above.
Loan Categories under PMMY
The PM Mudra Yojana offers loans in three categories, depending on your business needs:
- Shishu Loan: Provides financial assistance up to ₹50,000.
- Kishor Loan: Offers loans up to ₹5 lakh.
- Tarun Loan: Gives loans up to ₹10 lakh.
Benefits of Pradhan Mantri Mudra Yojana
Loans ranging from ₹50,000 to ₹10 lakh based on your needs.
Collateral-free loans with no processing fees.
The repayment period ranges from 12 months to 5 years, and it can be extended if needed.
Interest is charged only on the amount you withdraw using the Mudra card, not the entire loan amount.
Even partnership businesses can apply for Mudra loans.
How to Apply for PM Mudra Loan
- Visit the official Mudra Yojana website at mudra.org.in.
- Choose the loan category – Shishu, Kishor, or Tarun – as per your requirement.
- Download and print the application form from the website.
- Fill in the details and attach documents like Aadhar card, PAN card, business address proof, income tax returns, and passport-size photos.
- Submit the application form to the nearest bank. The bank will verify your application, and the loan will be processed within one month.
- To apply online, create a user ID and password on the Mudra loan website and submit your application digitally.
This scheme is an excellent opportunity for those looking to start their business with government support and minimal investment.
