PMMY: The government is giving you a loan of up to Rs 10 lakh without guarantee to start your own business. Let us know who and how can take advantage of this scheme.
Pradhan Mantri Mudra Yojana: The central government keeps coming up with many types of schemes for different sections. We are going to give you information about one of those schemes. People often need a lot of money to start their own business. In such situations, people turn to banks, but sometimes this becomes difficult due to the requirement of more documents. In such a situation, to promote business in the country, the Central Government has started Pradhan Mantri Mudra Yojana. Through this scheme you can get a loan up to Rs 10 lakh without any guarantee. If you are also thinking of starting your own business then you can apply for this scheme. We are telling you about its details.
Know about Pradhan Mantri Mudra Yojana
The central government started this scheme in the year 2015. Under this scheme, the government has to give loans ranging from Rs 50,000 to Rs 10 lakh without any guarantee. You do not have to pay any kind of processing fee in this loan. Apart from public sector banks, these people can also get this loan from cooperative banks, regional rural banks (RRBs), small finance banks and NBFCs. The interest rate of this loan varies from different banks. Generally banks charge 10 to 12 percent interest rate on this loan.
There are three types of Mudra loans
There are total three types of PM Mudra loans. The first category is Shishu Loan. Under this, when you start your business for the first time, the government gives you a loan of up to Rs 50,000 for 5 years without any guarantee. People already doing business are also given loans to expand their business. If you take a loan ranging from Rs 50,000 to Rs 5 lakh, then it comes under the category of Kishore Loan. Under the Tarun Loan category, the government gives loans ranging from Rs 5 to Rs 10 lakh to expand the business.
Process and documents to apply for the scheme
In this scheme, any Indian citizen whose age is between 24 to 70 years can apply. Through loan application, you will need Aadhar, PAN card, passport, address proof etc. To apply for this scheme, go to the official website of mudra.org.in and download the form. Then enter all the information in the form and submit it to your nearest government or private bank. The bank will approve your loan after looking at all the documents.