Pradhan Mantri Mudra Yojana for Startup Business
Under Mudra Yojana scheme, the banks issue loans up to â‚š1,000,000 to small businesses without any collateral. MUDRA itself does not provide loans directly; it facilitates the same through different banks, NBFCs and other FIs.
Loans Under Pradhan Mantri Mudra Yojana
• Shishu: If the startup requires loan amount within ₹50,000 the loan falls under ‘Shishu’ category. • Kishor: If the startup requires loan amount above ₹50,000 and within ₹500,000, the loan falls under ‘Kishor’ category. • Tarun: If the startup requires loan amount of more than ₹500,000 and up to ₹1,000,000, the loan falls under ‘Tarun’ category.
Who can Borrow Loan through Pradhan Mantri Mudra Yojana?
Individual business owner, private companies, public sector companies, proprietary firms or any legal business entity can apply for the Mudra loan.
Mudra Loan Interest rates
Funding from MUDRA Scheme are offered with nominal interest rates & can vary depending upon the amount and tenure of the loan.
Eligibility Criteria for Pradhan Mantri Mudra Yojana?
• The applicant should be a citizen of India. • The applicant should have a business plan. • The business should belong to the non-farm income generating category, such as manufacturing, processing, trading or service sector. • The maximum loan amount required should be up to ₹1,000,000. • To avail loans under PMMY, the borrower/applicant may have to follow the usual terms and conditions of the lender.
How to Apply for Mudra Yojana?
Step 1: To obtain the scheme application form, the applicant will need to visit the nearest bank associated with the scheme. The MUDRA portal provides a list of lenders under the scheme.
Step 2: The applicant would need to fill up the application form and submit it along with documents required.
Step 3: The applicant would need to provide documents such as Identity Proof, Residence Proof, Applicant’s Photograph, Business Address Proof and Proof of Category of the business. Depending on the type of loan applied for, additional documents may be required.
Step 4: The banks do not charge a processing fee for loans under PMMY. Additionally the loans are collateral-free.
Step 5: Upon loan approval the applicant will receive a MUDRA Card, which is functionally similar to a credit card.
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