Pradhan Mantri Mudra Loan Yojana (PMMY): Simplified Overview

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Pradhan Mantri Mudra Loan Yojana

Objective:
The PMMY scheme aims to provide affordable loans (up to ₹10 lakh) to small and micro enterprises, entrepreneurs, and non-corporate businesses to foster self-employment and economic growth.

Key Features:

  1. Three Loan Categories:
  • Shishu: Loans up to ₹50,000 for startups or small businesses.
  • Kishore: Loans between ₹50,001 to ₹5 lakh for expanding established businesses.
  • Tarun: Loans between ₹5 lakh to ₹10 lakh for scaling larger enterprises.
  1. Eligibility:
  • Indian citizens engaged in non-farm income-generating activities (e.g., manufacturing, trading, services).
  • No collateral required for loans under ₹10 lakh.
  1. Application Process:
  • Approach participating banks, NBFCs, or MFIs.
  • Submit basic documents (ID proof, business plan, and KYC).
  1. Interest Rates:
  • Determined by lenders but kept affordable under the scheme’s guidelines.

Benefits:

  • Promotes entrepreneurship, especially for women, SC/ST/OBC communities, and rural populations.
  • Supports informal sector businesses in accessing formal credit.
  • Flexible repayment terms (up to 5 years).

How to Apply:

Visit the official Mudra portal (mudra.org.in) or contact partner financial institutions like SBI, HDFC, or regional rural banks.

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