Mudra Loan Scheme If you want to start a new business or expand your existing business, then Mudra Loan Scheme can be very good for you. You must make your business plan before applying for a loan. This makes it easier for the bank or financial institution to check the eligibility for taking a loan.
Many people want to start their own business, but they face financial problems. For such people, Pradhan Mantri Mudra Loan Yojana (PMMY) can prove to be very helpful. It has been started to provide financial assistance to small businessmen, shopkeepers and new entrepreneurs. In this, a loan of up to Rs 20 lakh is given without any guarantee. You can repay it in a period of up to 5 years.
Who can take Mudra loan?
If you want to start your new business or expand your existing business, then Mudra Loan Yojana can be very great for you. You must make your business plan before applying for a loan. This makes it easier for the bank or financial institution to check the eligibility for taking a loan.
How many types of Mudra loans are there?
The government has created three categories of Mudra loan. In this, one can apply to take loan as per the need.
Shishu Loan
- Loan amount: Maximum ₹50,000
- For whom: This is for those who want to start a small-scale business.
- Example: Boutique, grocery store, service center, online startup, etc.
Kishore Loan
- Loan amount: ₹50,000 to ₹5 lakh
- For whom: For those who are already running a business and need capital to expand it.
- Example: Manufacturing units, service sector, trading businesses etc.
Tarun and Tarun+ Loan
- Loan amount: ₹5 lakh to ₹20 lakh
- For whom: Tarun and Tarun+ loan is given for business expansion on a large scale. Tarun loan provides loan up to Rs 5 to 10 lakh. Those who repay it become eligible for Tarun+ loan. It provides loan up to Rs 10 to 20 lakh.
- Example: Medium level industry, franchise business, hotel and restaurant sector etc.
Mudra loan interest rate
The interest rate at which you will get a Mudra loan depends largely on your credit score and the bank’s policies. If you do not have a credit score, then the bank decides the interest rate by doing its own risk assessment.
Eligibility for Mudra Loan
- Aadhar Card, PAN Card and Bank Account are mandatory.
- No need to provide any kind of guarantee to avail the loan.
- Public and private banks, NBFCs and microfinance companies can be contacted.
Process to apply for Mudra loan
- Visit the official website of Mudra loan http://www.mudra.org.in/.
- Select the loan category (Shishu, Kishor, Tarun) as per your requirement.
- Download the application form, fill it correctly and attach all the required documents.
- Submit it to the nearest bank or microfinance branch.
- The loan approval process can be completed within 15 days.
In which sectors can you get a Mudra loan?
- Entrepreneurs
- Grocery and retail businesses
- Technology startups
- Manufacturing & Service Sector
- Transport Business – Auto, Taxi, E-rickshaw
- Education & Healthcare Services
