Pradhan Mantri Mudra Yojana
There is good news for people thinking of starting or expanding a small business. Under the Central Government’s Pradhan Mantri Mudra Yojana, one can now get a loan up to Rs 20 lakh without any guarantee. The objective of this scheme is to provide easy finance to small traders, startups and self-employed.
What is Mudra Loan Scheme?
Mudra Loan is a scheme launched especially for non-corporate and small businesses. In this, loans are given through banks, microfinance institutions and NBFCs. There are three categories in this scheme, Shishu, Kishor and Tarun. Now, in view of the increasing needs, the loan limit has been increased to Rs 20 lakh, so that more people can get the benefit.
How to get loan without guarantee?
The biggest feature of this scheme is that it does not require any kind of collateral or guarantee. Credit guarantee support is provided by the government, due to which banks also approve loans easily. However, the applicant’s profile, business plan and credit history are definitely seen.
Keep these 5 important documents ready
While applying for Mudra loan, it is necessary to provide some basic documents.
- Identity Proof: Aadhar Card, PAN Card or Voter ID
- Address Proof: Electricity Bill, Ration Card or Driving License
- Business Plan: Details of the purpose for which you are taking the loan
- Bank Statement: Record of last 6 to 12 months
- Passport size photo: For application process
Who can apply?
Small shopkeepers, artisans, women entrepreneurs, startups and self-employed people can avail the benefits of this scheme. Especially for those people who lack capital, this scheme is proving to be very helpful.
Interest rate and payment period
The interest rate on Mudra loan is decided according to different banks, which can usually be between 8% to 12%. The loan repayment period is from 3 to 5 years, due to which the EMI burden remains less.
Both online and offline options
Applicants can also apply by visiting the nearest bank branch or through the online portal. Many banks are giving fast loan approval through digital process, which saves time.
Important role in increasing employment
This scheme is not only helping people to start their own business, but is also creating new employment opportunities in the country. The aim of the government is that more and more people should move towards self-employment and become economically strong. Overall, Mudra loan up to Rs 20 lakh without guarantee has emerged as a big opportunity for small traders and new entrepreneurs, through which they can realize their dreams.
