Under the PMMY scheme, you are given a collateral-free loan up to Rs 10 lakh, that is, you do not need to deposit any security for the loan.

If you want to start your own business and you need a loan for this, then Pradhan Mantri Mudra Yojana (PMMY) can prove to be a better option for you. This scheme was started by Prime Minister Narendra Modi in the year 2015 to promote self-employment. Under this scheme, you are given a collateral-free loan up to Rs 10 lakh i.e. you do not need to deposit any security for the loan. This loan is given for non-corporate and non-agricultural purposes.

The loan is available in three categories

Under the PM Mudra Loan Scheme, the government gives loans in three categories. The first category is Shishu Loan- Financial assistance up to Rs 50,000 is given in this. The second category is the Kishore loan, in which a loan of up to 5 lakh is given and the third category is the Tarun loan, in which an amount of up to Rs 10 lakh is given as a loan. You can choose the category according to your need.

You can get a loan from these banks

You can apply for this loan anywhere along with government or private banks, regional rural banks, small finance banks, non-financial companies, etc. The total repayment tenure of the loan ranges from 12 months to 5 years. The rate of interest is based on the applicant's profile and business needs.

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 can choose the category according to you.
  • A new page will open, and from here the application form has to be downloaded, take a printout of this application form.
  • Fill out 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 photograph, etc.
  • Submit this application form to your nearest bank. The bank will verify your application and the loan will be given within 1 month.
  • A username and password have to be created to apply online. With its help, login will be done on the Mudra loan website. Here you can apply online.