Services offered under Pradhan Mantri Mudra Yojana Loan (PMMY)
Honourable PM Narendra Modi-led government of India launched a scheme called Pradhan Mantri Mudra Yojana loan on 8th April 2015. This Mudra loan scheme aims to provide financial assistance to non-corporate, non-farm micro and small start-ups to cater to their funding requirements. MUDRA as expanded Micro Units Development and Refinance Agency Ltd offers loan up to a maximum of ₹10 lakhs through commercial banks, NBFCs and co-operative banks. If you are one among those who are planning to start up a new small-scale enterprise, you can visit the nearest branch of the bank or apply for MUDRA loan online.
Need for MUDRA loan scheme
The primary purpose of launching this initiative was to help generate income and create employment in India. To be precise, as PM Modi says – “Make in India”. The project, by now, has gained wide acceptance among the business people. Don't use plagiarised sources.Get your custom essay just from $11/page
- MUDRA loan is beneficial for shopkeepers, vendors, traders and other small-scale business owners.
- You are eligible to apply for MUDRA bank loan if you are renovating your existing shop or business.
- Equipment finance is available for small-scale units.
- You can get a loan for working capital using MUDRA cards.
- Under MUDRA loan, you can apply credit for transport vehicles.
MUDRA bank loan services include:
Under the Pradhan Mantri MUDRA Yojana scheme, 3 services are available, each of which caters to specific fund requirements of the business owner. Let’s have a glance at each of these services.
- Shishu
The basic loan scheme of PMMY is the Shishu Yojana scheme. Under Shishu scheme, the loan is available for business entrepreneurs who are looking to start a business on a small scale. The maximum loan amount sanctioned under Shishu category is ₹50,000.
- To provide finance for equipment or fixed assets
Supplier details and a valid quotation details are required
- Kishor
Here, the amount is extended to ₹5lakhs. The main agenda of Kishor loan scheme is to provide funds for expanding the business. There are specific requirements to be fulfilled to avail for Kishor scheme,
- Present the existing balance sheet for the previous two years.
- Provide a bank account statement
- Show the income and sales returns
- Showcase an estimated balance sheet for the current year
Explain the technical and economic viability of the expanded business project.
- Tarun
The third and the last category of PMMY loan scheme is the Tarun loan for business enterprises that are looking for a full-fledged flourishment of the business. If you are planning to look for further growth or diversification of your business, you can approach the bank for MUDRA bank loan. To get this loan;
- Provide all the requirements listed for the Kishor Mudra loan
- Bring an address and ID proof.
- You might need to submit a caste certificate if you are eligible for reservation.
It is good to see some government initiatives benefitting the general public of India. As per the recent surveys, 11 crore people have so far been benefitted with the MUDRA loan scheme. 3.49 crore new entrepreneurs have started up their business in India, which is quite impressing.
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