Types of PM Mudra Yojana
- Shishu: loans up to ₹50,000
- Kishor: loans between ₹50,000 and ₹5 lakh
- Tarun: loans between ₹5 lakh and ₹10 lakh
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Know more about this Scheme
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Objectives
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Purpose
More about PM Mudra Yojana
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Honourable Prime Minister on April 8, 2015, to provide loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises.
Within the framework and overall objective of developing and growing the micro-enterprises sector, MUDRA Loans are designed to meet the requirements of different sectors/business activities and business/entrepreneur segments
The benefits of the Pradhan Mantri Loan Yojana include easy access to credit for microenterprises, especially those in the non-farm sector. It promotes entrepreneurship, boosts employment opportunities, and facilitates the growth of small businesses, contributing to economic development.
To apply for the Pradhan Mantri Mudra Yojana, individuals can visit the scheme's official website or approach any of the participating financial institutions, including HDFC Bank. They must fill out the application form, provide necessary documents, and meet the eligibility criteria set by the lending institution or government guidelines.
The HDFC Bank Pradhan Mantri Mudra Yojana (PMMY) offers micro and small enterprises financial support. It provides loans up to ₹10 lakh without collateral, categorised into Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). The scheme promotes entrepreneurship by offering affordable credit, simplified application processes, and flexible repayment options. It targets non-corporate, non-farm small/micro-enterprises to help them start, sustain, or expand their businesses, thus fostering financial inclusion and generating employment opportunities.
Frequently Asked Questions
Pradhan Mantri Mudra Yojana (PMMY) is a government initiative in India to support microenterprises in the non-farm sector financially. It offers loans through various financial institutions to individuals and small businesses to help them start, expand, or diversify their activities.
Under the Mudra Loan, the product offerings include Shishu, Kishore, and Tarun Loans. Shishu Loans are for amounts up to ₹50,000, Kishore Loans range between ₹50,000 and ₹5 lakh, and Tarun Loans range between ₹5 lakh and ₹10 lakh.
The repayment period for PM Mudra Loan varies depending on the type of loan and the terms agreed upon with the lending institution. Typically, it ranges from one to five years.
To apply for a Mudra Loan for a business, individuals can approach any participating financial institutions, such as banks, NBFCs, and MFIs. They need to submit their business plan, KYC documents, and other required paperwork per the lending institution's guidelines.