The central government has started the PM Mudra Yojana to promote self-employment. People who want to start their own business should not face any problem regarding funds. For this, the government is giving a loan of Rs 10 lakh. Any citizen of India can apply for this. This loan is given to start non-corporate and non-agricultural business.
How to get a loan
Under the scheme, the government gives loans in three categories.
- Shishu Loan: Loan amount up to Rs 50,000 is given to the loan takers.
- Kishor Loan: Loan up to Rs 5 lakh is given in this category.
- Tarun Loan: In this category, loan amount up to Rs 10 lakh is given to the borrowers.
Eligibility for PM Mudra Yojana
- Any Indian citizen above 18 years of age can apply for this loan.
- The bank default history of the applicant is checked, i.e. he should not have defaulted on any loan.
- The business you are taking on should not be a corporate entity.
- You can apply for Mudra loan in the bank where you have an account.
You can do business by taking a loan
Any business can be started under this scheme like fruit vendor, small dhaba, etc.
Required Documents
- Aadhar card
- PAN card
- residence construction letter
- Passport size photo
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- Business Plan
- KYC Documents
- Income Proof
How to apply for Mudra loan
- To apply for this scheme, first go to the official website of Mudra Scheme www.mudra.org.in.
- After this, there will be a category in front of you, in which you will have to choose one from baby, teenager and young man.
- After that the application form will open in front of you, which you will have to download.
Frequently Asked Questions in PM Mudra Yojana
In how many days is PM Mudra Loan approved?
Private/Public sector banks and NBFCs approve the loan within around 7-10 working days.
What are the rules of Mudra Loan?
The loan has to be repaid to the banks in the form of EMIs in 3 to 5 years. The interest rate or EMI period is decided according to the previous credit and business turnover of the businessman.
What will happen if Mudra loan is not repaid on time?
If you fail to repay the Mudra loan, then the bank or finance company will take your property in their name. After that your property will be auctioned, through which they get back their loan money.
What is the limit of Mudra Loan?
There is no minimum loan amount under Mudra Loan Scheme
How much subsidy is available in PM Mudra Loan?
Loans up to Rs 10 lakh are provided with a subsidy of about 35%. So that the income of entrepreneurs engaged in the non-agricultural sector can increase.