Now you will get a Mudra loan of up to 20 lakhs, what are the conditions to be fulfilled to avail of the benefit? Know

During the budget, the government has doubled the limit of Mudra loans. Now under this scheme, collateral-free loan of up to Rs 20 lakh can be taken. Know who gets the benefit of this scheme and what conditions have to be fulfilled for this.

Pradhan Mantri Mudra Yojana (PMMY) is run to make the youth self-reliant. Under this scheme, a collateral-free loan of up to 10 lakhs was given, but during the budget, the government doubled this limit. Now in this scheme, collateral-free loans of up to Rs 20 lakh will be available. Modi government started this scheme in the year 2015. In this scheme, the loan is given for non-corporate and non-agricultural works. Youths who are unemployed and want to start their own business or small businessmen who want to expand their business, but do not have the money for it or have less money, such people can take advantage of this scheme.

The loan is available in 3 categories.

At present, loans up to Rs 10 lakh are given in this scheme in 3 categories-

Shishu Loan - In this, financial assistance of up to Rs 50 thousand is given.

Kishor Loan - In this, a loan of up to 5 lakh is given.

Tarun Loan - In this, an amount of up to Rs 10 lakh is given as a loan.

It is necessary to fulfill these conditions to take a loan

To take a loan under the Mudra scheme, the applicant will first have to prepare a business plan and give all the necessary documents to the bank. The bank will ask you for a business plan, project report and other necessary documents. Apart from this, you have to fulfill some conditions like-

The person applying for the loan should be a citizen of India.

The applicant should not have a history of bank default.
The business for which Mudra loan is to be taken should not be a corporate entity.
The applicant for the loan must have a bank account.
The applicant for the loan must be above 18 years of age.

What are its benefits

- The loan is collateral free, and there is no processing fee on it.

- The total period of repayment of the loan received under this scheme is from 12 months to 5 years. But if you are unable to repay it in 5 years, then its period can be extended by 5 years.

- Another good thing about this loan is that you do not have to pay interest on the entire amount of the loan approved. Interest is charged only on the amount that you have withdrawn and spent through the Mudra card.

- If you are doing any business in partnership, then also you can take a loan through the Mudra scheme. In this, you get loan in three categories. The interest rate varies according to the category.

How to apply

• First of all, go to the official website of Mudra Yojana, mudra.org.in.
• The home page will open on which three types of loans will be written about Shishu, Kishor and Tarun, you choose the category according to you.
• A new page will open, from here you will have to download the application form, take a print of this application form.
• Fill the application form correctly, photocopies of some documents will be asked in the form like Aadhar card, PAN card, proof of permanent and business address, copy of income tax return and self tax return and attach passport size photo etc.
• Submit this application form to your nearest bank. The bank will verify your application and the loan will be given within 1 month.