PM MUDRA LOAN
The PM Mudra Loan is part of the Pradhan Mantri Mudra Yojana (PMMY), an initiative launched by the Government of India in 2015 to provide financial support to small businesses, entrepreneurs, and micro-businesses. This scheme aims to encourage entrepreneurship by providing loans with minimal documentation and no collateral. Here's detailed information about it:
1. Purpose of PM Mudra Loan:
The PM Mudra loan is designed to support the non-corporate, non-farm small/micro-enterprises, and the self-employed. These include small businesses such as shopkeepers, fruit vendors, and artisans, among others.
2. Categories of PM Mudra Loan:
The loan is provided under three different categories based on the size and requirement of the business:
Shishu:
For new businesses and startups.
Loan amount up to ₹50,000.
Kishore:
For businesses that have progressed and are in need of more funds to expand.
Loan amount from ₹50,001 to ₹5 lakh.
PANKAJ:
- For established businesses looking to grow further or diversify.
- Loan amount from ₹5,00,001 to ₹10 lakh.
3. Eligibility Criteria:
Type of Borrower:
Micro and small enterprises.
Age: Applicants must be above 18 years and below 65 years.
Business Type: Retailers, traders, manufacturers, and service providers.
Credit History: No strict credit score requirement, but applicants should have a reasonable credit history.
Purpose: The loan must be used for business purposes like working capital, machinery, or expansion.
4. Features of the PM Mudra Loan:
No Collateral:
Loans are provided without any collateral or security requirement.
Low-Interest Rates:
The interest rates are typically low, with rates depending on the lender and the borrower's profile. It generally ranges from 8% to 15% per annum.
Repayment Period:
The repayment tenure can range from 3 to 5 years, depending on the loan amount and type of business.
Loan Processing Fee:
Minimal or no processing fees.
5. How to Apply for PM Mudra Loan:
Online Application:
The loan can be applied for through the official website of the Mudra Yojana (www.mudra.org.in), or directly with banks and financial institutions offering the scheme.
Documents Required:
- Identity proof (Aadhar card, voter ID, passport, etc.).
- Address proof (Aadhar card, utility bills, etc.).
- Business proof (such as GST registration, trade license, etc.).
- Bank account details.
6. How to Repay:
Repayment of the loan can be done through:
(Equated Monthly Installments).
Flexible EMI options based on cash flow from the business.
7. Where to Apply:
The PM Mudra loans are available through:
Public Sector Banks like SBI, Bank of Baroda, etc.
Private Banks such as HDFC, ICICI, etc.
Regional Rural Banks (RRBs)
.
NBFCs (Non-Banking Financial Companies) and Microfinance Institutions (MFIs).
8. Benefits of PM Mudra Loan:
Encourages Entrepreneurship: Supports those who wish to start a new business.
Boost to Small and Medium Enterprises (SMEs)
:Helps small business owners expand their ventures.
Improved Financial Inclusion:
Assists individuals in rural and semi-urban areas who often face difficulties obtaining loans from traditional banks.
9. Key Takeaways:
No collateral or guarantee required.
Loans up to ₹10 lakh for small and micro-businesses.
Affordable interest rates.
Easy documentation and quick processing.
If you’re planning to apply for a Mudra loan, you can approach banks and financial institutions offering this scheme and inquire about the specific terms.
HOW TO APPYLY
