PM Mudra Yojana: To promote entrepreneurship in the country, under the Pradhan Mantri Mudra Yojana, people in different categories have been getting financial assistance ranging from Rs 50 thousand to Rs 10 lakh. However, now its maximum limit has been increased to Rs 20 lakh. It was informed on Friday by the Department of Financial Services, Ministry of Finance, Government of India that The existing limit of loan under Mudra Yojana (PM Mudra Yojana) has been increased from Rs 10 lakh to Rs 20 lakh. Who will be able to avail the benefit of doubled limit of Mudra Yojana? Let us know to whom the government will provide assistance up to Rs 20 lakh.
This increase in the maximum limit of loan amount is another positive initiative to promote the overall objective of Mudra Yojana. This increase is especially beneficial for emerging businesses, which will help them in growth and expansion. This initiative is in line with the government’s commitment to promote a strong entrepreneurial eco-system.
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Who will get the benefit of increase in loan limit?
According to the released notification, the new category of Tarun Plus is for loans above Rs 10 lakh and up to Rs 20 lakh and it will be available to those businessmen who have successfully availed the benefit of previous loan under Tarun category and have also paid them successfully. Guarantee coverage for PMMY loans up to Rs 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).
How to take PMMY loan
For loan under Mudra Yojana (PMMY), you will have to apply in a government or bank branch. If you want to start your own business, then you will have to provide house ownership or rental documents, work related information, Aadhaar, PAN number and many other documents. Details of all those banks in which these loans are being given will be available on the website of Mudra Yojana. The form can also be downloaded online.
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step to step
Download the loan application form on https://www.mudra.org.in/ website.
The form for Shishu Loan is different, whereas the form for Tarun and Kishore Loan is the same.
Fill all the information in the loan application form.
Provide correct mobile number, Aadhaar number, name, address etc.
Provide information about where you want to start your business.
Applicants falling under OBC, SC/ST categories will have to provide caste certificate.
Insert 2 passport photos.
After filling the form, go to any public or private bank and complete all the procedures.
Submit all the documents.
The branch manager of the bank takes information from you about the work. On that basis PMMY approves you loan.
necessary documents
identity certificate
residence proof
Information about machinery etc.
passport size photo
business certificate
proof of business address
For what type of business is Mudra loan available?
Self-Proprietor
partnership
service sector companies
micro industry
repair shops
truck owners
food related business
Vendor (Fruits and Vegetables)
Micro Manufacturing Firms
What have been the interest rates?
The interest rates of Pradhan Mantri Mudra Yojana may be different in different banks. Different banks may charge different interest rates for Mudra Loan. The interest rate also depends on the nature of the loan borrower’s business and the risk associated with it. Generally the minimum interest rate is 12 percent.
During the budget speech of the year 2024, the Central Government is to increase the existing limit of Mudra loan from Rs 10 lakh to Rs 20 lakh for those businessmen who have earlier availed Mudra loan under ‘Tarun’ category and have successfully repaid it. . Let us tell you that under Mudra Yojana, the government provides financial assistance in three categories – Shishu Loan, Kishore Loan and Tarun Loan.
Who has been getting loan under PMMY till now?
Under Shishu Yojana, the government gives loan up to Rs 50 thousand to start a business. Beneficiaries in this category get a rebate of 2 percent in the interest rate. Under Kishore Loan, assistance ranging from Rs 50 thousand to Rs 5 lakh is provided to start a business. Under Tarun Loan, assistance up to Rs 10 lakh has been available, which has now increased to Rs 20 lakh.
3 types of loans
Shishu Loan: Loans up to Rs 50,000 are being given under Shishu Loan.
Kishore Loan: Under Kishore Loan, loans ranging from Rs 50,000 to Rs 5 lakh are available.
Tarun Loan: Under Tarun Loan, now emerging businessmen will get loans up to Rs 20 lakh.
Who can get the benefit of the scheme
Any Indian citizen who wants to start his own business can take a loan under PMMY. If you want to expand your existing business and need money for it, then you will be able to apply for a loan up to Rs 20 lakh under the Pradhan Mantri Mudra Yojana. This scheme was started in April 2015.
