PMMY: You can get a loan of Rs 20 lakh under Pradhan Mantri Mudra Yojana, find out whether you can get it or not..
Pradhan Mantri MUDRA Yojana: The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India that provides unsecured loans of up to ₹20 lakh to small and micro entrepreneurs to start or expand their businesses. Launched on April 8, 2015, the scheme offers loans in categories such as Shishu up to ₹50,000, Kishor up to ₹5 lakh, and Tarun up to ₹10 lakh. The scheme provides microloans up to ₹20 lakh to income-generating microenterprises operating in non-agricultural sectors, including manufacturing, trading, or services, as well as agriculture-related activities such as poultry, dairy, beekeeping, etc.
What does this scheme provide?
The scheme provides financial assistance to small businesses that generate income in the non-corporate and non-agricultural sectors. These businesses are called micro and small enterprises (MSMEs). These include millions of small businesses, such as small manufacturing units, service sector units, shopkeepers, fruit and vegetable vendors, truck drivers, food stall owners, repair shops, machine operators, artisans, food processing units, and other small industries.
Where can one get loans under the Mudra Scheme?
Loans under the Pradhan Mantri Mudra Yojana (PMMY) are available through Member Lending Institutions (MLIs). These include public sector banks, private banks, state cooperative banks, rural regional banks, microfinance institutions (MFIs), non-banking financial companies (NBFCs), small finance banks (SFBs), and other institutions approved by Mudra Limited.
Interest Rate
Banks determine loan interest rates based on their RBI regulations. Therefore, interest rates may vary from bank to bank. Banks may charge a processing fee based on their own regulations. However, for Shishu loans, i.e., loans up to ₹50,000, most banks either do not charge any processing fee or waive it.
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