Pradhan Mantri Mudra Yojana, one of the major government schemes, offers micro credit/loans up to Rs.10 lakhs to income-generating micro-enterprises in non-farm sectors.
Micro and Small entity sector-
Small businesses, including manufacturers, service providers, shopkeepers, vendors, truck operators, food service units, repair shops, artisans, and more..
Loans are categorised into 3 sections-
Shishu: Covering loans up to Rs.50,000/-.
Kishore: Covering loans above Rs.50,000/- and up to Rs. 5 lakhs.
Tarun: Covering loans above Rs. 5 lakhs and up to Rs. 10 lakhs.
The Pradhan Mantri Mudra Yojana offers loans to individuals and entities through various approved institutions, including:
Public Sector Bank
Private Sector Bank
Micro Finance Institutions (MFIs)
Non-Banking Finance Companies (NBFCs)
Small Finance Banks (SFBs)
Other financial intermediaries endorsed by Mudra Ltd.
Application Process
Visit the PM MUDRA website.
Sign up on the Udyamimitra portal.
Provide personal and professional info.
Select a loan category and upload the required documents.
Benefit
Comparatively high loan amount up to 10 lakhs.
Unsecured loans are available.
The loans that the banks present are backed by the government.
With less complicated documentation, it serves perfectly to those small firms and startup