If you are an entrepreneur who is unable to grow your business due to a lack of funds and are not able to get a loan, the Pradhan Mantri Mudra Yojana (PMMY) can help you. This is a scheme of the Government of India through which loans are provided to small businessmen.
Mudra is a type of NBFC (non-banking financial company). It provides funds to banks, MFIs, small finance banks, and other NBFCs, which in turn give loans to small businessmen. In this way, small entrepreneurs who need funds can get loans. The special feature of this scheme is that you do not need to provide any guarantee or security.
If you wish to take a loan under the Pradhan Mantri Mudra Yojana (PMMY) to grow your business but do not know the process, here you will find all the information. You will also know how much loan you can get under this scheme.
Types of PM Mudra Loans
PM Mudra Yojana offers loans in four categories. In the Shishu Mudra Loan, you can get up to ₹50,000. In the Kishor Mudra Loan, you can get from ₹50,000 to ₹5 lakh. In the Tarun Mudra Loan, you can get from ₹5 lakh to ₹10 lakh. In the Tarun Plus Mudra Loan, you can get from ₹10 lakh to ₹20 lakh.
This loan is given to small shopkeepers, home businesses, women, farmers, livestock farmers, small artisans, startups, MSME units, street vendors, retailers, traders, small manufacturers, partnership firms, and LLPs.
Application Process
You can apply both offline and online. For offline application, visit the nearest bank or NBFC office, collect the Mudra loan form, fill it, attach the required documents, and submit it. For online application, go to the Mitra portal, register, fill the loan form, upload the documents, select your bank or NBFC, and submit the application. The bank or NBFC will contact you after this. The form for Shishu Mudra Loan is different, while the form for Kishor and Tarun loans is the same.
Required Documents
Some documents are needed for this loan. Aadhaar and PAN card are mandatory. You can also use your passport, voter ID, or driving license. If you are SC, ST, or OBC, you need a caste certificate. A 6-month bank account statement is also required. If you have a business, you may need to show its age and details.
Loan Disbursement and Interest Rate
After applying, it may take 7 to 15 days to receive the loan. Sometimes, it can take longer. The interest rate is not fixed by Mudra. Banks and NBFCs decide the interest rate. For example, Union Bank charges 10.75% to 12%, Canara Bank charges 10.30% to 12%, and Bank of Baroda charges 9.40% to 11.75%.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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