The Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, has revolutionized access to credit for small and micro enterprises in India.
Designed to empower budding entrepreneurs, the scheme offers collateral-free loans of up to ₹10 lakh, fostering self-employment and financial inclusion:
High FD Rates: More than 10 banks are giving more than 8% interest on Fixed deposit, check list
Loan Categories Under PMMY
The scheme is structured into three categories to cater to businesses at different stages of growth:
- Shishu: Loans up to ₹50,000 for startups and early-stage ventures.
- Kishore: Loans ranging from ₹50,001 to ₹5 lakh for businesses seeking expansion.
- Tarun: Loans between ₹5 lakh and ₹10 lakh for established enterprises aiming for significant growth.
How to Apply for a Mudra Loan
Eligibility Check: Ensure your business falls under the non-farm, non-corporate sector. Activities like manufacturing, trading, and services, including allied agricultural ventures like dairy and poultry, are eligible.
Choose a Lending Institution: Mudra loans are available through public and private sector banks, regional rural banks, microfinance institutions, and non-banking financial companies.
Prepare Documentation: Gather essential documents such as identity proof, address proof, business plan, and financial statements.
Submit Application: Apply directly at the bank or online via platforms like the JanSamarth portal.
Interest Rates: Interest rates vary by lender but start as low as 9.30% per annum.
Why Choose PMMY?
The scheme has disbursed over ₹33 lakh crore in loans, with women entrepreneurs holding 68% of accounts—a testament to its role in promoting gender equity and rural development: . Additionally, the low non-performing asset (NPA) ratio of 3.6% underscores its success in fostering responsible lending.
Whether you’re launching a new venture or scaling an existing one, the PM Mudra Yojana is a game-changer. With its focus on accessibility and affordability, it paves the way for a brighter entrepreneurial future.