PM Mudra Yojana: If you want to start your own business, but are short of money, then you can take advantage of the Central Government’s PM Mudra Yojana. Under Pradhan Mantri Mudra Yojana (PMMY), loans up to Rs 10 lakh are given to non-corporate, non-agricultural small or micro enterprises. These loans are called Mudra Loans. These loans are distributed by commercial banks, RRBs, small finance banks, MFIs and NBFCs. Customers can also apply for Mudra Loan online by visiting www.udyamimitra.in portal.
There are 3 categories in PM Mudra Yojana
Loans are available under three categories under PM Mudra Yojana. Children, teenagers and young adults. These categories are decided based on the growth/development and funding needs of the beneficiary micro unit or enterprise. Shishu Loan covers loans up to Rs 50,000. This category includes those entrepreneurs who are either in the initial stage or who still need less funds to start their business.
Loans up to Rs 5 lakh are available in Kishore category. This category includes those entrepreneurs who have already started their business and want more money to expand their business. The third category is of Tarun Loan. It covers loans up to Rs 10 lakh. This is the highest amount given in Mudra loan.
How is business?
For Mudra Loan, your business should be one of the following:
Small Manufacturing Enterprise
shopkeeper
Fruit and Vegetable Vendor
craftsman/artisan
Farming related activities like fish farming, beekeeping, poultry farming, dairy, pisciculture, agricultural clinics and agribusiness centres, food and agro processing, etc.
How to apply for Mudra Loan
You can apply for Mudra loan by visiting the bank branch. Apart from this, you can also apply online by visiting Udyam Mitra portal www.udyamimitra.in. Here you have to register. After applying, your application will be visible to many lending institutions. To apply for Mudra Loan, important documents like address proof, ID proof will be required. The bank will give you a loan considering the assessment of your business, risk factors and your financial capacity.
Apart from banks, Mudra loan will be available through these lending institutions:
- State-run co-operative bank
- Regional Sector Gramin Bank
- Institutions offering micro finance
- Financial companies other than banks
