The central government provides various schemes to benefit people from different communities, offering small savings schemes, pension schemes, and loan opportunities.
One such scheme is the PM Mudra Yojana, which allows individuals to obtain loans of up to Rs. 20 lakhs without requiring any surety.
The PMMY scheme, introduced by the government led by Prime Minister Narendra Modi, aims to provide loans to micro and small enterprises and traders.
Initially, eligible individuals could obtain loans up to Rs. 10 lakhs without guarantee. However, the budget has recently doubled to Rs. 20 lakhs, signalling a positive change and a hopeful future for the scheme.
Launched on April 8, 2015, the PMMY scheme promotes self-employment and provides loans for both commercial and non-agricultural purposes.
Eligible beneficiaries include youth, unemployed individuals, women, and small entrepreneurs seeking to start or expand their businesses.
The PM Mudra Yojana offers three types of loans: Shishu, Kishore, and Tarun. The Shishu loan is designed for those just starting their business and provides up to Rs. 50,000.
On the other hand, the Kishore loan is for established businesses and offers a loan of Rs. 50,000 to Rs. 10 lakhs.
The Tarun loan, previously offering Rs. 5 to 10 lakhs, now allows individuals to borrow up to Rs. 20 lakhs and is suitable for businesses looking to expand.
To apply for a loan under the Mudra scheme, applicants must prepare a business plan and submit the required documents to the bank.
Applicants must be Indian citizens, provide additional documents as requested by the bank, have a good CIBIL score, and maintain a bank account while being over 18 years of age.
The Mudra scheme offers a unique benefit: interest is payable on the loan amount. With the Mudra card, individuals are only required to pay interest on the withdrawn and spent amount, providing financial security and reducing the burden of interest payments.
To apply for a loan under the Mudra Yojana, individuals can visit the official website mudra.org.in. They can choose the appropriate loan category based on their financial requirements and download the application form.
After filling out the form and submitting it to the nearest bank, the loan will be disbursed once the application is verified. The website also provides a step-by-step guide on how to fill out the form and what documents are required, making the application process more straightforward.