Wednesday, April 24, 2024

Unlocking Entrepreneurial Dreams: A Guide to Collateral-Free Loans through Pradhan Mantri MUDRA Yojana

The most important thing required to start or expand your business is large capital. But, many times it happens that after adding all your earnings, your capital becomes less. If you go to take a loan from the bank, it takes time and some mortgage is also required.

Pradhan Mantri MUDRA Yojana (PMMY) can help you in this difficult situation. Let us know everything about this scheme of the Central Government.

How much loan is available under Mudra Yojana?

Under Pradhan Mantri Mudra Yojana, you can get a loan ranging from Rs 50 thousand to Rs 10 lakh. The most important thing is that this loan is collateral free, that is, you do not need to pledge anything against the loan. Even the processing fee is zero or nominal.

How many categories of loans are there?

Under this scheme, loans are given in three categories. The first is Shishu Yojana. In this you get a loan up to Rs 50 thousand. Whereas, Kishore Yojana gives you loan ranging from Rs 50,001 to Rs 5 lakh. Last comes Tarun Yojana. In this you can take a loan of more than Rs 5 lakh but Rs 10 lakh or less.

What is the eligibility to take loan?

The first condition of Pradhan Mantri Mudra Yojana is that only Indian citizens, who are above 18 years of age, can avail its benefit. He should never have defaulted on any loan before. All industries in the Micro, Small and Medium Enterprises (MSME) sector can get loans under this scheme. However, loans are not available for corporate institutions and agriculture under this scheme.

How can I apply?

Loan can be applied for under Mudra Yojana in Small Finance Bank along with Government-Private Banks. You can download the form from mudra.org.in and fill all the necessary information.

You will need documents like last 6 months bank statement, address proof and ID proof. Usually banks and NBFCs approve the loan within about 7-10 days. The loan repayment period ranges from one to five years.

RELATED ARTICLES

Most Popular