PM Mudra Loan Yojana: If you’re planning to start a new business or expand your existing one, this news could be of great interest to you. The government frequently introduces various schemes to benefit the public, and today we’ll discuss a popular initiative that has already helped many. The scheme we are talking about is the PM Mudra Loan Yojana. Let’s delve into all the important details of this scheme.
What is the PM Mudra Loan Yojana?
Launched by the Indian government is the PM Mudra Loan Yojana. Individuals can apply for loans up to ₹20 lakh under this initiative in order to start a new venture or grow an existing one. Tarun, Kishore, and Shishu are the three loan categories that are available under this plan. Loans of up to ₹20 lakh are available under the Tarun loan type.
Loan Amount Increased to ₹20 Lakh
The Union Budget, which was presented by Finance Minister Nirmala Sitharaman on July 23, 2024, saw an increase in the PM Mudra Loan Yojana’s lending ceiling from ₹10 lakh to ₹20 lakh. However, there are requirements in place before you may use this enhanced funding. The ₹20 lakh loan is only available, under the regulations, to people who have paid back their previous Tarun loan balance in full.
Interest Rates Under the PM Mudra Loan Yojana
The PM Mudra Loan Yojana is divided into three categories: Shishu, Kishore, and Tarun. Each category has different provisions and interest rates. The annual interest rate on these loans ranges from 8% to 12%, depending on the category.
Benefits of the Mudra Loan Yojana
This government-backed scheme offers several benefits to individuals. One of the most significant advantages is the relatively low interest rates. The scheme is divided into three categories:
- Shishu Loan: Provides loans up to ₹50,000.
- Kishore Loan: Provides loans ranging from ₹50,000 to ₹5 lakh.
- Tarun Loan: Offers loans up to ₹20 lakh, subject to certain conditions.
How to Apply for the PM Mudra Loan?
To apply for a Mudra loan, you must first download the application form from the official website mudra.org.in. After filling out the form, visit the nearest branch of the bank from which you wish to take the loan. Submit the completed application form along with the required documents. Once the bank or lending institution verifies the documents, the loan will be approved. The loan amount will be transferred to your bank account within 7-10 days.
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