PMMY/Mudra Yojana: Presenting the budget for the financial year 2024-25 in the Lok Sabha Finance Minister Nirmala Sitharaman announced that the loan limit under the Mudra scheme will be doubled to Rs 20 lakh. The government has made a special announcement in this budget for people who want to become businessmen. Who will be able to take advantage of the doubled limit of the Mudra scheme? Let us know who will get help of up to Rs 20 lakh from the government.
Who will get help up to Rs 20 lakh under Mudra Yojana
During the budget speech, the central government has said that the current limit of Mudra loan is to be increased from 10 lakh to 20 lakh for those businessmen who have already availed Mudra loan under the ‘Tarun’ category and have also successfully repaid it. Earlier, the government has been providing help in three categories under the Mudra scheme. Whose names are as follows – Shishu Loan, Kishor Loan and Tarun Loan.
The government gives a 2 percent discount in the interest rate to the beneficiaries who take loans up to Rs 50,000 under Mudra Loan. Under Shishu Yojana, the government gives loans up to Rs 50,000 and under Kishor Loan, loans from Rs 50,000 to 5 lakh to start a business. Under Tarun Loan, assistance of up to Rs 10 lakh has been available which has now increased to Rs 20 lakh. You would also like to know how to get a Mudra Loan. We are providing information about it here.
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Who has been getting loan under PMMY till now?
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 can apply for a loan of up to Rs 20 lakh under the Pradhan Mantri Mudra Yojana. This scheme was started in April 2015.
3 types of loans
Shishu Loan: Loans up to Rs 50,000 are given under Shishu Loan.
Kishor Loan: Under Kishor Loan, loans ranging from Rs 50,000 to Rs 5 lakh are given.
Tarun Loan: Under Tarun Loan, loans up to Rs 20 lakh will be given.
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How can you get PMMY loan
For a loan under the 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 submit house ownership or rental documents, work related information, Aadhaar, PAN number and many other documents. Details of all the banks in which these loans are being given will be available on the Mudra Yojana website. The form can also be downloaded online.
step by step
Download the loan application form on the website https://www.mudra.org.in/.
The form for Shishu loan is different, whereas the form for Tarun and Kishor loan is the same.
Fill all the information in the loan application form.
Provide correct mobile number, Aadhaar number, name, address etc.
Please provide information about where you want to start your business.
Applicants falling under OBC, SC/ST categories will have to provide caste certificate.
Attach 2 passport size 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 about your work. On that basis, he approves you the PMMY loan.
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Required documents
Identification Certificate
residence proof
Information on machinery etc.
passport size photo
business certificate
Proof of business address
For what type of business Mudra loan is available
Self-Proprietor
partnership
Service sector companies
Micro Industries
Repair Shops
Owners of trucks
food related business
Vendor (Fruits & Vegetables)
Micro manufacturing firms
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What have been the interest rates?
The interest rates for Pradhan Mantri Mudra Yojana may vary from bank to bank. Different banks may charge different interest rates for Mudra loans. The interest rate also depends on the nature of the loan taker’s business and the risk associated with it. Generally, the minimum interest rate is 12 percent.