Pradhan Mantri Mudra Yojana (PMMY) – How to Apply, Eligibility Guidelines, Interest Rate

Present government had been really focused towards creating job opportunity for the people and the government has launched various schemes for the same. The government also understands that one of the major hurdles for the small and medium businesses is the availability of funds. To deal with this issue, the government came up with a scheme called Pradhan Mantri Mudra Yojana. Here are all the details about the scheme.

Pradhan Mantri Mudra Yojana

What is Pradhan Mantri Mudra Yojana (PMMY)?

Mudra stands for Micro-Units Development and Refinance Agency and the sole purpose of this scheme is to fund the small businesses by providing them a loan of up to Rs 10 Lakhs at the subsidised interest rate. A new corpus was created to fund the businesses and the whole idea behind this scheme was that the people would be able to generate employment for themselves as well as for the other people by employing them in their organization.

How will Pradhan Mantri Mudra Yojana (PMMY) work?

It has been almost three years since the scheme has been launched and the scheme had been really successful. Under the scheme, people can apply for a loan for their enterprise and the government will try its level best to fund their dreams. Under the scheme, there are three stages. The first stage is Shishu Stage wherein the applicant can avail a loan of up to Rs 50 thousand. The second stage is Kishor stage under which the applicant can avail a loan of up to Rs 5 Lakh and final stage is Tarun stage under which the applicant can avail a loan of up to Rs 10 Lakhs.

The loan can be paid back to the government in a tenure of 5 years to 7 years and the same can also be altered after availing the loan. The government has also started issuing Mudra Card which can be used on all Rupay platform. The interest rate can vary from one person to another depending on the CIBIL score and hence it is best to approach the bank for the information.

PMMY

What is Eligibility criteria for Pradhan Mantri Mudra Yojana (PMMY)?

The eligibility criteria to avail the benefits of the scheme are –

  • The benefits of the scheme are available only for the small-scale businesses only.
  • The loan can’t is available for any personal requirement or for educational reasons. The reason for availing loan can only be business.
  • The age of applicant should be over 18 years.
  • The applicant should be an Indian citizen and he would require submitting various documents like PAN Card, Aadhaar Card, and Income Proof etc.

How to apply for Pradhan Mantri Mudra Yojana (PMMY)?

There are many banks offering loan under Pradhan Mantri Mudra Yojana and the applicant can approach any of the banks. The general process to apply for the scheme is mentioned below, however, the process can vary minutely from one bank to another.

  • The applicant can visit any of the public sector, private sector or rural bank. In addition to this, the applicant can also approach NBCSs or Micro Finance Institutes to apply for the loan.
  • The applicant can then obtain the application form from the bank and fill in the application form as per the details required.
  • The applicant would also have to attach various documents and finally, the applicant can submit the form along with the documents.
  • The loan disbursement would be subjected to the approval of the loan.

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What are the benefits of Pradhan Mantri Mudra Yojana (PMMY)?

There are several benefits of the scheme and some of them are mentioned below.

  • The scheme is providing people with a chance to start a small business. This would help people in generating self-employment for themselves.
  • The business would also employ many other people and hence the business will create employment for the public.
  • The business would certainly generate income and this would contribute to the growth of the country as the business would pay tax and it would also increase the GDP of the country.

Who will back the plan?

The plan is being backed by the central government and they are have already created the corpus to fund the business entities.

Details of the scheme

Scheme Name – Pradhan Mantri Mudra Yojana

Budget For scheme – NA

Scheme Launched by – Mr. Narendra Modi

Official website: http://www.mudra.org.in/

Is this the way forward for the nation?

The scheme is certainly helping people by generating employment and the scheme is also helping the country by accelerating the growth and by increasing the GDP. In addition to this, the government should certainly continue this scheme for a long term as the scheme has turned many dreams into a reality.

Pradhan Mantri Mudra Yojana (PMMY) – How to Apply, Eligibility Guidelines, Interest Rate
  • Pradhan Mantri Mudra Yojana (PMMY) – How to Apply, Eligibility Guidelines, Interest Rate

Summary

Here are all the details about the Pradhan Mantri Mudra Yojana (PMMY) scheme like How to Apply, Eligibility Guidelines, Interest Rate and much more.

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