Want to start your own business, but lack of capital is becoming an obstacle? So there is good news for you, the government has made a great plan to fulfill your dream.
Under the Pradhan Mantri Mudra Yojana (PMMY), the Government of India is giving a loan of up to Rs 10 lakh without guarantee. This scheme has been started especially to provide financial help to small businessmen and entrepreneurs.
How will your dream become a reality
PM Mudra Yojana provides three types of loans to small businessmen, which you can choose according to your needs-
Shishu Loan: This loan of up to Rs 50,000 is for those who want to start their business on a small scale.
Kishor Loan: This loan of Rs 50,000 to Rs 5 lakh is for those businesses that are in the initial stage and have the potential to grow.
Tarun Loan: This loan of Rs 5 lakh to Rs 10 lakh is for those entrepreneurs whose businesses are already running and need capital to take it forward.
Which businesses can get loans
PM Mudra Yojana is not just a loan scheme, but it is a strong step towards a self-reliant India. Under this scheme, financial assistance is given to small manufacturing industries, the service sector, shopkeepers, horticulture, fisheries, dairy farms, and other small enterprises.
This scheme has been specially designed to promote activities that generate employment and make people self-reliant.
How much interest will be charged on the loan
The interest rate on loans available under PM Mudra Yojana ranges from 9% to 12%. Although there may be a slight difference in interest rates in different banks, these rates are fixed as per the instructions of the Reserve Bank of India (RBI).
Apart from this, there is no need to provide any kind of guarantee or mortgage the property to take a loan under this scheme.
Who can apply
To avail of the benefits of PM Mudra Yojana, it is enough to complete the age of 18 years. The person applying must have a bank account and some necessary documents will also be required. This scheme is especially for those who are engaged in non-corporate and non-agricultural business.
Documents required for application
Aadhar card
PAN card
Residence certificate
Certificate related to business
Bank passbook
KYC documents
Income certificate (as required)
How to apply
To get a loan under PM Mudra Yojana, you can apply by visiting any bank near you. Apart from this, you can also apply online. To make the application process easy and convenient, the government has also provided the facility for application on the website mudra.org.in. During the application, you will have to go through the document verification process and some important information may be asked by the bank.