Update, Benefit of loan of Rs 20 lakh from Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana To give jobless people jobs, the government is putting new programs into place. For those who wish to start a business, the government has also launched a lending program that offers loans up to Rs 10 lakh. You only need to fill out a few paperwork to receive the government loan.

This post will be crucial for you if you wish to launch your own company and obtain a government loan from the government. This post contains all the information you need to know about the PM Mudra Loan Yojana, which offers benefits to you as well.

Pradhan Mantri Mudra Yojana 2024: Overviews

PM Mudra Loan Yojana 2024

The central government was the first to launch the PM Mudra Loan Yojana. These individuals who want to launch their own businesses will be eligible for loans under this program. Those who are interested can apply for loans from the government that range from ₹50,000 to 10 lakh rupees. 

When it comes to government loans, there are no processing fees. To apply for this loan, visit the closest bank. Interest on loans obtained under the PM Mudra Loan Scheme must be paid according to the loan amount; applicants must pay between 10% and 12% interest.

Pradhan Mantri Mudra Yojana Benefits:

Numerous incentives are provided to small and micro enterprises under the Pradhan Mantri Mudra Yojana (PMMY), which aids in business growth and financial empowerment.

• Loan Availability: This program helps business owners without assets or collateral by offering small loans with no guarantees.
• Easy process: Applying for a loan through the Mudra scheme is a quick and easy process. Company owners can obtain the loan with ease and without any difficulties.
• Low Interest Rates: Compared to other commercial loans, interest rates on loans made through the Mudra Scheme are lower, which lessens the financial strain on business owners.
• Self-employment and job creation: By supporting small firms, this program creates new chances for either employment or self-employment.
• Self-Reliance: By giving them financial support, Mudra Yojana enables small company owners to establish a stable and prosperous enterprise and become self-sufficient.

Types of PM Mudra Loan Scheme

The three loan categories offered by the government under the PM Mudra Loan Scheme are Shishu, Kishor, and Tarun Loans. The government offers Shishu loans with a maximum amount of ₹50,000 under the PM Mudra Loan Scheme. Kishor Loan offers a loan of ₹50,000 to 5 lakh, whereas Tarun Loan offers a loan of ₹5 lakh to 10 lakh.

Eligibility for PM Mudra Loan Scheme

• Beneficiaries of the PM Mudra Loan Yojana shall be candidates who are Indian citizens.
• People who are 18 years of age or older will be the only ones eligible for the benefit.
• The benefit will not be granted to the applicant if any bank declares him to be in default.
• Any individual seeking a loan for a firm should be well-versed in the enterprise.
• In addition, the candidate should possess documentation such as a voter card, ration card, PAN card, caste certificate, Aadhar card, and business-related certificate.

Key Features of Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana (PMMY) is designed with several attractive features to help small businesses. Here are some of its key features:

1. Loans Without Collateral: One of the primary characteristics of the PMMY is that it provides loans without the need for collateral. Those without assets to pledge as security for loans will find this especially useful.
2. Loan Amounts: PMMY offers loans with amounts ranging from ₹50,000 to ₹10,000,000, making it available to businesses of all sizes, from start-ups to established micro and small enterprises.
3. Low Interest Rates: Small firms can afford to make use of the financial support without incurring significant expenses thanks to the scheme's loans, which have comparatively low interest rates.
4. There are three types of loans: Loans are divided into three primary categories under PMMY:
   • Shishu Loan: For businesses in the early stages, up to ₹50,000.
   • Kishor Loan: For growing businesses, ranging from ₹50,001 to ₹5,00,000.
   • Tarun Loan: For well-established businesses, ranging from ₹5,00,001 to ₹10,00,000.

Prime Minister Mudra Yojana : Important Documents

• Aadhar card
• PAN card
• Address proof
• Age Certificate
• Bank Account
• Bank statement
• Mobile Number
• Photo

How to apply for PM Mudra Loan Yojana

Apply by following the steps listed below if you would like to obtain a business loan under Prime Minister Narendra Modi's PM Mudra Loan Scheme:

• The first step in applying for a PM Mudra Loan is to go to the official website.
• Then you will have the choice of Shishu, Tarun, and Kishor loans.

• On the loan you wish to obtain, click.
• You must then click on the necessary link to view the application form.
• Once the application form has been downloaded in PDF format, you must print it out.
• This is followed by filling out the nomination form and attaching the necessary paperwork.
• Following that, the merchant must provide this form to the Durbin Bank location.
• Your bank account will be credited with the loan amount after that.

Interest Rates for PM Mudra Yojana

The interest rate for Mudra loans depends on the type of loan, the amount, and the lending bank. Typically, the interest rates range between 10% to 12%, but some banks offer lower rates depending on the applicant’s credit history and business profile.

Top Banks Offering Mudra Loans

Several public and private sector banks offer loans under PMMY, including:

1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. HDFC Bank
4. ICICI Bank
5. Axis Bank
6. Indian Overseas Bank (IOB)
7. Rural and Regional Banks

Success Stories Under Pradhan Mantri Mudra Yojana

Several entrepreneurs have successfully used the Pradhan Mantri Mudra Yojana to grow their businesses. Some notable success stories include:

• A 30,000 Shishu loan was utilised by Vijay Kumar, a resident of a small Haryana village, to launch his tea kiosk, which has since grown to become a prosperous chain in his area.
• In order to expand her business and hire local women, Shanti Devi, a woman entrepreneur in Rajasthan, obtained a ₹2,00,000 Kishor loan to establish a small-scale textile production operation.

These success stories are a testament to the power of the Mudra Yojana in transforming the lives of ordinary people.

Conclusion

One of the most significant programs promoting the expansion of startups and small enterprises in India is the Pradhan Mantri Mudra Yojana (PMMY). PMMY has made it easier for millions of company owners, particularly those from underserved and rural areas, to launch and grow their enterprises by offering loans without collateral and convenient credit availability. The country's economic growth, job creation, and entrepreneurship have all benefited greatly from it.