New Delhi: In recognition of the transformative potential of the nation’s youth, the Indian government has introduced several schemes to foster self-reliance and entrepreneurship among young individuals. One such initiative is the Pradhan Mantri Mudra Yojana (PMMY), launched in 2015 with a focus on enhancing entrepreneurial skills and providing financial support to the youth.
Purpose And Focus Of PMMY
The primary objective of PMMY is to empower unemployed youth and aspiring entrepreneurs who dream of establishing their businesses. (Also Read: Tax-Saving FDs With Lucrative Returns: Compare Fixed Deposit Rates Of Major Banks Here)
Additionally, the scheme caters to small business owners seeking funds for business expansion. Unlike many other loan schemes, PMMY focuses on non-corporate and non-agricultural purposes. (Also Read: Salesforce Cuts Jobs: Around 700 Employees Affected In Latest Layoffs)
Collateral-Free Financial Support
A standout feature of PMMY is that it offers collateral-free loans. Unlike traditional loans where borrowers must mortgage their property as security, PM Mudra Loans eliminate this requirement, providing a unique opportunity for individuals without substantial assets to receive financial assistance.
Loan Categories And Limits
PMMY offers loans in three categories, each tailored to different financial needs:
Shishu Loan: Financial assistance of up to Rs 50,000.
Kishore Loan: Loans extending up to Rs 5 lakh.
Tarun Loan: A higher loan limit, granting up to Rs 10 lakh.
Eligibility Criteria For Applicants
To be eligible for PMMY, applicants must meet certain criteria:
– The applicant must be a citizen of India.
– No history of bank defaults by the applicant.
– The business seeking a Mudra loan should not be a corporate institution.
– The applicant must possess a valid bank account.
– The applicant’s age should be over 18 years.
How To Apply For A PMMY Loan?
Applying for a PMMY loan is a straightforward process:
– Visit the official Mudra Yojana website at mudra.org.in.
– Choose the loan category (Shishu, Kishore, or Tarun) based on your requirements.
– Download and print the application form from the website.
– Fill out the application form accurately and attach necessary documents such as Aadhar card, PAN card, proof of permanent and business address, income tax return copies, passport-size photos, etc.
– Submit the completed application form to your nearest bank.
– The bank will verify your application, and the loan will be sanctioned within a month.
For those preferring an online application, creating a username and password on the Mudra Loan website facilitates easy login and application submission.