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Mantri Mudra Yojana and its loan
Mantri Mudra Yojana and its loan

What is Pradhan Mantri Mudra Yojana and its loan interest rate

Many schemes have been launched by the government in India. Today, we will talk about one of those schemes and know what is PMMY (What is PMMY). Along with this, you will also know what is Mudra Loan, how can you take these English and Pradhan Mantri Mudra Rojgar Yojana loans online? What is Mudra loan eligibility, in which case can you take this loan and what is Mudra loan interest rate? If ever you want to know some facts about it, then the Pradhan Mantri Mudra Yojana helpline number is also available where you can get a solution to your problem by talking about it and you will also know about it further. What are the necessary documents for Mudra loan (mudra loan documents details in English) will also give information about it.

Whatever the government in the country, people have a lot of hope that they get employment opportunities from the government, everywhere schools, colleges, hospitals, and new roads should be built, water facilities. These are all basic needs which are necessary. India is a very large country and it also has the largest population in the world. The economy here depends on agriculture but a large part is also dependent on business. But those who want to make business their own way for employment, they are short of capital. Due to lack of capital, new people are unable to make a foray into the field of business, due to this, people with good and progressive minds are unable to contribute for the development of the country through business due to lack of money.

Youth are the future of the country. Progress occurs only when there is change over time. Educated people have a lot of ideas that they want to do something new. People are unemployed even after studying, the reason is that due to the large population of the country, there is a lack of employment and not all people get a job despite having a good education. That is why today we thought that all of you should be told about a scheme run by the government. Therefore, if you are not able to start a business due to lack of money, then you can complete it by taking advantage of this scheme. But it is also necessary to have complete information about it, only then you can understand its entire process and apply for it, so let’s go ahead and know what is PMMY (What is PMMY), Mudra What is loan and how to take (Mudra loan in English) and what is the interest of this loan.

What is PMMY? What is PMMY?

 

What is PMMY? What is PMMY?
What is PMMY? What is PMMY?

 

Honorable Prime Minister of India  Prime Minister’s Currency Scheme (PMMY) Launched on 8 April 2015. The objective of starting this scheme was to promote Non -Corporate, Non-farm small or small scale industries for which loans up to 10 targets can be availed. Such loans have been kept in the category of Mudra Loans under PMMY. Such loans are provided by Commercial Bank, RRB, Small Finance Bank, Cooperative Bank. If you need a Mudra loan and want to take it, you can go to any of the above mentioned banks and contact these institutions.

In order to fully implement this scheme, the government has formed an institution which has been named MUDRA (Micro Units Development & Refinery Agency Ltd.). Its task is to develop in small units and every refinancing activity done for progress should also reach there. PMMY provides the facility of refinance to any banks seeking refinance for small business loans. In this way you can understand that MUDRA refinance all types of last mile financiers. These include cooperatives, societies, trusts, section 8 companies, cooperative societies, small banks, scheduled commercial banks, and rural banks that lend money to small businesses that produce, trade, and deliver services.

If you are thinking of small business or business and want to start and earn yourself, but you do not have money for this, then this is a golden opportunity for you, through which you apply under the Mudra scheme given by the Prime Minister. You can take a loan of 50 thousand to 10 lakh rupees after tax. In this way, you can start your own business using those found money. But now the question arises here, who will be given a loan under the Mudra scheme? Is every person eligible to take this loan or has the facility of giving loan only on merit basis. So let us now know what are the conditions for availing this scheme.

Who will get the Mudra Yojana loan or who can take it – Mudra Loan Eligibilty

Whatever banks give Mudra loans, they choose their candidate very carefully before giving loan. Banks accept loans only for the business in which they see growth and which can also give employment opportunities to others in future. To be honest, the main goal behind the introduction of Mudra loan was to provide financial assistance to small scale businessmen. This is such a government-run scheme that ensures that no small businessman gets caught in the private network or private loan agency where they are charged extra fees and levies a lot of useless rules.

This scheme allows small business owners to give loans at a low interest rate to institutions which are recognized by the government. A major advantage under this scheme is that the person who gets salvation does not need any person or third party to guarantee it. In this way MSME will strengthen the sector, which also helps in increasing GDP growth. And at the same time, it will also play an important role in giving employment opportunities in entire India.

Here we will talk about some circumstances, only on which a Mudra loan can be taken.

Activities:

For this, PMMY has given a very long list of Activities which is necessary for Mudra loans, only small businesses in this area fulfill the eligibility of this.

SectorActions under Mudra Loans
farmingWork related to farming such as crops, poultry farms, fisheries, dairy farms, etc. has to be started, established or spread.
FoodYou have to buy or do business of machinery used in making jams and jellies, papad, biscuits and bread making, selling fruits and vegetables etc.
ServiceBoutique, chemist’s shop, salon, dry cleaning, photocopying facilities, etc. to be set up.
TextileArtisans who want to start or spread the business of jari work, embroidery, chicken work, weaving etc.
TransportFor the journey of salmon or passengers, purchase of vehicles such as e-rickshaws, small freight transport, vehicles, autorickshaw fresh, etc.Loan:

To do business, the owner of the business can apply to get more than 10 lakh rupees under this scheme. To start a small business, an amount of 50 thousand can be applied. One can apply for loans ranging from 50000 to 5 lakhs to establish a small business running first. Whereas an established company needs capital to spread itself, they can apply for the amount of 5 lakh to 10 lakh. Any business which fulfills all the conditions of taking this loan, still cannot apply for an amount of more than 10 lakhs.

Phase:

The funding amount of an initial business is different from that of a previously established business. This is the reason that the business phase is enough for a company taking a money loan. A Shishu loan can be applied for a startup business and will get the amount under this, but even before that the borrower has to give a complete plan about his business which fulfills the terms and conditions of the Mudra loan If he does, then he can get the loan amount. Similarly for applying for Kishore loan, documents showing the current status of the company will have to be shown. Under this, the document puts its eligibility criteria in front of the bank as the bank wants to ensure the possibilities of business before passing the loan.

Types of Mudra Loans – types of MUDRA loan in English

Baby loan

It is the smallest category loan under this scheme and it is best for small startups. A micro business merchant can apply for an amount up to 50000. In the MSME sector, Shishu Loan provides small capital to start a business for the small businessman. A businessman who has made a plan for its application will have to put the business plan in front of the bank along with the application form.

Kishore lone

Mudra loan Kishore Kategori is great for small business owners who already have a business going on and need to establish it as a big business. Businessmen can apply for an amount of 50000 to 5 lakhs under this. The borrowing businessman has to fill the application form for this and also has to give the necessary documents stating the current status of the ongoing business so that it can be ascertained whether the business is eligible to take a loan as per its rules.

Tarun Lone

Tarun loan is better for those businesses who want to further expand and expand their already established business which requires capital and who need money for micro units. Business owners can apply for an amount ranging from 5 lakh to 10 lakh for their business. For this, it is necessary to give the necessary documents to the businessman to show ID certificate and business updates so that it can be known that it is capable of taking this loan.

Mudra Loan Interest Rate

Its amount has been fixed for each category of Mudra loan. According to the loan amount in each of its categories, there is a slight variation in the interest rate of every bank. Interest rates of Shishu, Kishore and Tarun loans increase from 10-12%, 14-17% and 16%.

Currency loan typeLoan amountInterest rate
Baby loanUp to Rs 5000010-12%
Kishore loneRs 50000 – Up to Rs 5 Lakh14-17%
Tarun LoneRs 5 Lakh to Rs Lakh16% +

What is a currency card?

This is a type of debit / credit card that is issued against the Mudra loan account only and for the working capital portion of the loan. It is an innovative product that provides the facility to provide working capital in the form of cash management. Mudra cards can be used to withdraw money from ATMs located in any part of the country and can be used to make payments through any point of sale machine.

Mudra Yojana Toll Free Number – Mudra Yojana Toll Free Helpline Number

S.No.National toll free number
11800 180 11 11
21800 11 0001

Documents for Mudra Loans – mudra loan documents details in English

  • caste certificate
  • Business license
  • Quotation – for goods or machines
  • Machine or luggage details

Benefits of Mudra Loans – Benefit of Mudra Loan in English

  • There is no minimum loan amount for this scheme.
  • The merchant availing this scheme is not required to give any kind of guarantee in front of the bank.
  • There is no processing charge for Mudra loan.
  • All non-farming businesses ie small companies can avail this scheme.
  • The amount received from this can be used for a lot of work. The amount received from PMMY can be increased to meet any fund or non-fund based needs.

 

FAQs related to Mudra Loans

Question: How do I apply for Mudra loan?

Answer: There is a very simple way of applying for Mudra loan but there can be some difference in it for every bank. You need to know that not all banks offer Mudra Loans, but you have to first check which nearby banks provide the facility of Mudra Loans and you should contact them by going there. When you find the bank that offers the nearest Mudra loan facility, first get information about their application process and understand their terms and then only fill the application form.

Question: Which banks offer Mudra loans?

Answer: Currently, more than 98 financial institutions under the total 27 public sector banks provide this facility. Apart from this, 27 Regional Rural Banks, 17 Private Sector Banks, 2 Foreign Banks, and 25 Micro Financial Institutions are included in this which provides Mudra Loans for business. For this, you have to go to your favorite bank and find out whether they are recognized under this scheme or not.

Question: Is it necessary to have an account with the same bank to take a Mudra loan?

Answer: No, there is no need to have a bank account in the bank from which you want to take a Mudra loan. Whereas if you have an account with a bank and apply for a currency loan in the same, then the chances of getting it approved and received increases.

Question: I want to start a business, which Mudra loan should I apply for?

Answer: If you are starting a new business, then Shishu Loan is the best for you. For this, you will have to explain your business plan for the loan and fill the application form as well as submit the necessary documents to fulfill the terms and conditions.

Question: Which document is required to apply Mudra Loan?

Answer: You will have to go to the nearest bank and ask the process there and you will have to get the application form from there. Here we are giving you a list of the documents that are available for this loan.

  1. Borrower’s identity certificate
  2. Borrower’s certificate of address
  3. caste certificate
  4. Business certificate, address proof, and license if available
  5. Quotation of items to be purchased for trade
  6. 2 passport size photos taken recently

Question: What is a currency card?

Answer: When you get the application for Mudra loan, you get a debit card which is known as Mudra card. Mudra card is also called Mudra loan card. It works just like a credit card, in which a limit is given that only 10% of the loan amount is used. Some banks also issue currency cards using which they can withdraw money from ATMs. You can withdraw a maximum amount of Rs 25,000 in a day.

In short

In today’s post, you have known what is PMMY (What is PMMY in English). Along with this, we also talked about what is the criterion for taking this loan and how can we take it, that is, what is the currency loan eligibility. What are the necessary documents for this (mudra loan documents details in English). Apart from Pradhan mantri mudra yojana in English, what are the types of mudra loan (types of mudra loan in English), you have also understood it very well. We also told here that when we go to take a bank loan, before that we have to find out whether it is recognized for it or not and which bank is it, can go and apply for it.

What is Mudra loan interest rate is one such fact which is very important to know about. In today’s post, we have also discussed about the card which is available after taking this loan, which people call as Mudra Card. Friends, how do you like this post, hope that you will like this information and if you like it, then share it more and more on Facebook, Twitter, Instagram and WhatsApp.

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