The Pradhan Mantri Mudra Yojana (PMMY) is a government initiative in India designed to provide financial assistance to small businesses. This scheme offers loans up to ₹10 lakh to non-corporate, non-farm small/micro-enterprises. The primary objective of PMMY is to foster entrepreneurship and create employment opportunities.
Types of Loans Under PMMY
The PMMY scheme offers three types of loans:
- Shishu: Loans up to ₹50,000 for non-corporate, non-farm small/micro-enterprises.
- Kishore: Loans above ₹50,000 and up to ₹5 lakh for small enterprises.
- Tarun: Loans above ₹5 lakh and up to ₹10 lakh for micro-enterprises.
Eligibility Criteria
To avail a PM Mudra loan, an applicant must meet the following criteria:
- Indian Citizen: The applicant must be a citizen of India.
- Age: The applicant must be at least 18 years old.
- Business Plan: The applicant should have a viable business plan.
- No Default: The applicant should not be a defaulter of any other loan.
- Required Documents: The applicant must provide necessary documents such as Aadhaar card, PAN card, address proof, and business-related documents.
How to Apply for PM Mudra Loan
- Visit the Official Website: Go to the official website of the lending institution or the PMMY portal.
- Fill the Application Form: Download the application form and fill it completely with accurate information.
- Submit Documents: Attach all the required documents with the application form.
- Submit Application: Submit the application form to the nearest branch of the lending institution.
Benefits of PM Mudra Loan
- Affordable Interest Rates: The interest rates on PM Mudra loans are comparatively lower.
- Collateral-Free: In many cases, these loans are collateral-free.
- Easy Application Process: The application process is relatively simple.
- Boost to Economy: PMMY has helped in boosting the economy by promoting entrepreneurship.