New Delhi. The Central Government has launched many schemes for small and medium businesses, one of the major schemes is Pradhan Mantri Mudra Loan (PMMY). This scheme can prove to be a boon for those who want to start their own business or expand their existing business. Under the scheme, loans ranging from Rs 50,000 to Rs 20 lakh can be obtained without any guarantee.
Loan Category
Pradhan Mantri Mudra Loan was started in three categories – Shishu, Kishore and Tarun. After this, a new category Tarun Plus was added, so that even big businesses can get loan facility.
Baby: Loan up to Rs 50,000
Teenager: Rs 50,000 to Rs 5 lakh
Tarun: Rs 5 lakh to Rs 10 lakh
Tarun Plus: Rs 10 lakh to Rs 20 lakh
In this way, the person who is eligible in his category gets the loan amount accordingly.
What can a loan be taken for
This loan is given for the needs of working capital in manufacturing, business and service sectors. It also includes agriculture related activities like poultry, dairy, beekeeping etc. The interest rates are decided as per RBI guidelines and the repayment period is usually 3 to 7 years.
Features of the scheme
Minimal or zero processing fees
No guarantee or collateral is required for the loan
Interest rate 9% to 15% per annum, depending on the bank’s MCLR or base rate.
Indian citizens having business income generating business can apply
Eligibility age should be above 18 years, not a bank defaulter
necessary documents
The following documents are required while applying for the loan. Aadhar Card, PAN Card, Address Proof, Business Quotation, Bank Statement, Caste Certificate (if applicable)
Who gives loan?
Loans under PMMY are given through several institutions, including. Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), some NBFCs and MFIs. Through this scheme, small and medium businessmen are getting financial help on a large scale without any guarantee.
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