PMMY: Under Narendra Modi’s administration at the center, various schemes to support business ventures were instituted. One such initiative is Pradhan Mantri Mudra Yojana which offers loans up to Rs 20 lakh through banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs) and other financial entities. Let us investigate more closely this scheme!
Pradhan Mantri Mudra Loans can be divided into four distinct groups, the Shishu, Kishor, Tarun and Tarun Plus categories. Shishu loans provide up to Rs 50,000 loans; Kishor provides loans that exceed this limit up to 5 lakh; Tarun covers loans over 5 lakh up to 10 lakh while Tarun Plus extends loans from 10 to 20 lakh.
Why are these loans meant?
These loans are intended to meet both term funding and working capital requirements for various sectors, including manufacturing, trading and services, agriculture-related activities such as poultry rearing or beekeeping as well as poultry trading or trading services. Interest rates are determined according to guidelines from the Reserve Bank of India while repayment terms for working capital facilities can be flexible.
Over the last decade, Pradhan Mantri Mudra Yojana has provided loans totalling Rs 33.65 lakh crore through 52.37 crore accounts – 849 lakh crore under Shishu category loans; 4.90 lakh crore for Kishor category loans and 0.85 lakh crore allocated under Tarun category.
How Can I Apply for a PM Mudra Loan?
In order to secure one of these loans, simply visit any government- or privately-owned bank, Regional Rural Bank (RRB), Non-Banking Financial Company (NBFC), or microfinance institution and fill out an easy application form that outlines all your business details.
Make sure you bring along your Aadhaar card, PAN card, relevant business documents and passport-sized photograph in order to apply for a loan at this facility. When your documents have been approved by our bankers, an approval for your loan should follow shortly afterwards. For online applications visit: Udyamimitra.in
Mudra loans to women represent 68% of recipients nationwide, underlining its effectiveness at supporting female-run businesses nationwide. Between FY16 and FY25, loan disbursement per woman increased at an average compound annual growth rate (CAGR) rate of 13 percent to Rs 62,679 while incremental deposits per woman rose 14 times faster – reaching Rs 95269.
