The central government is launching a new business loan scheme called the PMMY e-Mudra Loan to help 40 crore people start or expand their businesses. The loan will be available to eligible individuals with low interest rates and easy terms. Here’s what you need to know about the scheme.
Loan Amount and Eligibility
The government will provide loans of up to Rs 10 lakh under the PMMY e-Mudra scheme to help 400 million people across the country. The scheme is designed to benefit approximately 5 people per family, resulting in thousands of individuals gaining access to financial support. The funds for this initiative will be allocated in the budget for the financial year 2024-25.
Types of Loans
There are three types of loans available under the PMMY e-Mudra scheme:
- Sishu Loan: Loan of up to Rs 50,000 to start a new business.
- Kishor Loan: Loan of Rs 50,000 to Rs 5 lakh to expand a small or medium business.
- Tarun Loan: Loan of Rs 5 lakh to Rs 10 lakh for larger businesses.
Interest Rate
The interest rate on these loans typically ranges from 9% to 12%, depending on the lending bank.
Eligibility Criteria
The PMMY e-Mudra loan primarily targets small and medium entrepreneurs, particularly helping the following groups:
- Individuals looking to start or expand a business
- Unemployed youth
- Women entrepreneurs
- People from rural areas
- Persons with disabilities
Required Documents
To apply for the PMMY e-Mudra loan, applicants will need the following documents:
- Aadhaar Card
- PAN Card
- Voter ID
- Business Certificate
- Bank Statement (last 12 months)
- Income Tax Return (last 2 years)
How to Apply for the Loan?
Online Application
- Visit the official website of State Bank of India (SBI): www.onlinesbi.in.
- Fill out the Mudra Yojana application form.
- Upload the required documents like Aadhaar Card, PAN Card, Business Proof, and Bank Statement.
- The loan can be approved within 5 minutes of submitting the application.
Offline Application
- Visit any government bank and request a Mudra Yojana application form.
- Fill in the application form and submit it with the necessary documents.
The limit of Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) has been enhanced from current ₹10 lakh to ₹20 lakh
This increase aspires to further the overall objective of the Mudra Scheme which is Funding the Unfunded
This enhancement is specifically beneficial to… pic.twitter.com/XXHTquxigv
— PIB India (@PIB_India) October 30, 2024
Why is This Loan Being Offered?
Prime Minister Narendra Modi launched the PMMY e-Mudra loan scheme in 2015 to assist small traders. With additional funds, the government now aims to support more people. These loans are designed to help individuals start new businesses, grow existing ones, and create more jobs.
This scheme presents a significant opportunity for individuals to receive government assistance to either begin or expand their businesses.