New Delhi: Pradhan Mantri Mudra Yojana (PMMY) is a scheme of the Central Government. It aims to provide credit facilities up to Rs 10 lakh to non-corporate and non-farm small/micro enterprises. It was launched by PM Modi on 8 April 2015. According to official figures, in the seven years since then, loans worth Rs 18.60 lakh crore have been disbursed under this scheme. A total of more than 34.42 crore loan accounts have been opened for this.

three types of loans

Loans up to Rs 10 lakh are available from banks, non-banking financial companies (NBFCs) and small financial institutions (MFIs) under the Pradhan Mantri Mudra Yojana. This loan is given in three categories- ‘Shishu’, ‘Kishor’ and ‘Kishor’.

Shishu Loan: Up to Rs.50,000

Kishor Loan: Above Rs 50,000 and Below Rs 5 lakh

Yuva Loans: Up to Rs.5 lakhs and up to Rs.10 lakhs

What is the purpose of the loan?

Loans are provided under PMMY for manufacturing, trading and service sectors and agriculture related activities like poultry, dairy, bee keeping etc.

Rate of interest What is ?

As per the guidelines of the Reserve Bank, the interest rates are decided by the lending institutions. In case of working capital facility, interest is charged on the borrower’s loan only after the expiry of one day.

Who can get loan?

Any citizen of India with a business plan in non-farm income generating activities such as manufacturing, processing, trading or service sector can apply for Mudra loan under Pradhan Mantri Mudra Yojana (PMMY).

Anyone, male or female, proprietorship based establishment, partnership firm, private limited company or other organization can apply for this. For this, it is necessary to comply with the conditions of the lending bank or agency.