PRADHAN MANTRI MUDRA YOJANA

Pradhan Mantri Mudra Yojana (PMMY), also known as Mudra Loan, is a scheme started by the Government of India. 

The scheme was first introduced on April 8, 2015, by the Prime Minister of India. 

The Mudra loan scheme aims to provide financial assistance to those who run or plan to start their own micro, small, or medium enterprises. This initiated scheme offers a loan amount of up to ₹ 10 lakhs. 

The scheme has categorized the loans into three, which are Shishu, Kishore, and Tarun.

Shishu - Loan amount up to ₹ 50,000 can be availed under this Mudra Yojana scheme with a nominal interest rate ranging between 10% to 12%.

Tarun - Loan amount up to ₹ 5,00,000 can be vailed under this category of the Yojana. It is an unsecured loan with a nominal interest rate ranging from 14% to 17%.

Kishore - Loan amount up to ₹ 10,00,000 can be availed under this category. Being an unsecured loan, the nominal interest is charged from 16% and varies depending upon the lending institution.

Features of Mudra Loan

Mudra Loan is one of the best Government Schemes for business entrepreneurs in India with the below-mentioned features:

• Mudra loan can be term loan, working capital loan, or overdraft facility loan.
• It offers three kinds of loans: Shishu, Kishore, and Tarun.
• The maximum loan amount that one can avail of for their business is ₹ ten lakhs.
• The interest rate applied on the loan amount depends upon the nature of the business, requirements, and the borrower’s profile.
• The processing fees are either zero or 0.50% of the total loan amount.
• Collateral is not a requirement to apply and avail of the benefits of Mudra Yojana.
• The repayment tenure offered is flexible and can be extended to a maximum of 5 years.
• A nominal fee is charged on the Mudra Loan Yojana.