The central government runs several schemes that help people get funds for their businesses. Some of these schemes also offer different types of credit cards.
The Pradhan Mantri Mudra Yojana (PMMY) and the Kisan Credit Card (KCC) work in a similar way.
Under the PM-SVANidhi scheme, UPI-linked credit cards will also be provided to make getting loans even easier.
About the Mudra Scheme
Mudra Cards are offered under the Pradhan Mantri Mudra Yojana (PMMY), launched by Prime Minister Narendra Modi in 2015.
Under this scheme, people can get loans up to ₹20 lakh, depending on the category. Mudra loans are divided into four groups: Shishu, Kishor, Tarun, and Tarun Plus.
Mudra Loan Categories
Shishu: Loans up to ₹50,000
Kishor: Loans from ₹50,000 to ₹5 lakh
Tarun: Loans from ₹5 lakh to ₹10 lakh
Tarun Plus: Loans from ₹10 lakh to ₹20 lakh
Kisan Credit Card (KCC)
The Kisan Credit Card was introduced to support farmers. It allows them to instantly withdraw money to buy fertilizers, seeds, pesticides, diesel,
and for animal husbandry or dairy needs. KCC usually offers a loan limit of up to ₹3 lakh with a very low interest rate.
In many states, farmers also get an interest subsidy of up to 4% for paying on time. The card works at ATMs, giving farmers quick access to cash without visiting a bank.
PM-SVANidhi Scheme
In the Union Budget of February, the government announced that UPI-linked RuPay credit cards will be given under the PM-SVANidhi scheme. These cards will have a limit of ₹30,000.
This step will help street vendors get instant loans for urgent business or personal needs. Under this scheme, loans between ₹15,000 and ₹50,000 are provided.
