The government of India has introduced the Mudra Loan Scheme under the Pradhan Mantri Mudra Yojana (PMMY). This scheme was started in 2015 by the Minister of Trade and Industry. This unique scheme was created to provide financial support to budding local or indigenous businesses owned and handled by citizens of India. The scheme seeks to provide financial assistance through interest-free or extremely low-interest loans to help these small businesses and startups develop and increase their production and distribution capabilities.
To apply for a MUDRA loan online, you can approach any Commercial Bank, Regional Rural Banks (RRBs), Small Finance Banks (SFMs), Micro Finance Institutions (MFIs), or Non-Banking Financial Companies (NBFCs).
Note: Applicants can also apply directly on the Udyami Mitra website i.e. https://udyamimitra.in/page/mudra-loans
These loans are divided into three categories and have specific ceiling limits for loan amounts. Interested entrepreneurs will be able to apply for specific categories depending on the status of their business.
Under the Pradhan Mantri Mudra Yojana scheme, there are three categories of Mudra loans. Each category represents a specific loan amount range within which the applicant will receive his/her disbursement.
Here is a detailed account of the following categories and how you can apply for e-mudra loan:-
This category specifically caters to small businesses like startups and new local businesses that require a smaller capital to set up.
Banks have been given special instructions to concentrate on this category to make sure all new businesses get a chance to become successful.
The Kishore Mudra Loan category is provided to budding businesses that are in the development process. This loan is provided after the said business has received an initial round of Mudra loan.
Tarun Mudra Loans are for businesses that have grown and developed even further and need more investment capital for expanding and upkeeping the business.
You have to go to the Mudra web portal and fill up the joint Kishore and Tarun loan form listing your credentials which will determine if you are eligible for this loan.
Mudra Loans can be taken by interested individuals who seek to start and develop their own business. The PM Mudra Loan is applicable for a business which is involved in:-
This Mudra Loan scheme can be availed by Indian citizens that own the said company. Large corporations cannot avail these loans on behalf of any other company. Additionally - ,
You need to have a valid identity and address proof and other essential documents to qualify for the loan. Here are some documents that you will need to join the Pradhan Mantri Mudra Loan online apply process:
The vision of the Pradhan Mantri Mudra Yojana is to create a sustainable culture of entrepreneurship that would boost the Indian non-corporate industry and lead budding startups along the road to success.
The government has recognized the need to set up a separate financial support system for these new businesses to have the necessary capital required for their growth and development.
The Mudra Loan Scheme has seen many success stories in the 6 years since the introduction of PMMY. Initially, the scheme was able to sanction 34880924 loans in the first year itself. This was an excellent achievement for the government, and a total amount of ₹132954.73 crores was disbursed to the applicants.
The Pradhan Mantri Mudra Loan Online Apply process had helped hundreds of people by the year 2021 when the government recorded a total sanction amount of ₹26893.82 crores approximately in the year 2020-2021.
Mudra Loans are incredibly beneficial for budding entrepreneurs who lack the capital to develop and expand their startups and new businesses. In 2016, the government recorded that around 90% of the loans were disbursed to small businesses under the Shishu Mudra Loan category. This showed that this scheme immensely helped new companies. Here are some more benefits of the PMMY scheme:-
The scheme will provide small and local businesses with investment money that they can use to expand and develop their business.
As these loans allow expansion of local industries and businesses, it also helps employ more working hands.
You can obtain a business loan under the Mudra scheme very easily. E-mudra Loan Online Application is fast and straightforward.
You will receive a RuPay Mudra Debit Card from which you will be able to withdraw money easily from ATMs.
You will be allowed to pack back the debt whenever you have cash ready to spare. You can also establish annual payment schemes.
The Mudra Loan schemes have also helped establish many women who have dreamed of opening their own business to make an income for themselves. In 2016, around 75% of the loans sanctioned were actually to women-owned firms.
The Pradhan Mantri Mudra Yojana is a grand scheme that will bring a ton of benefits for people who want to start new businesses but do not have the capital needed to invest in them. Financial assistance from government sources can go a long way in helping such businesses, as we can see from the data that has been provided. The interest rates on loans are kept to a minimum to encourage people to start their own businesses and make a living for themselves while contributing to the local industry and trade development.
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