The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India that provides micro-finance (loans up to Rs 10 lakh) to small business enterprises. The scheme was launched on April 8, 2015 by Prime Minister Narendra Modi. Under the PMMY scheme, there are three types of loans that are provided to small business enterprises, namely Shishu (up to Rs 50,000), Kishor (between Rs 50,000 and Rs 5 lakh), and Tarun (between Rs 5 lakh and Rs 10 lakh). The primary aim of the PMMY scheme is to provide access to formal credit to small business enterprises so that they can expand their businesses and create employment opportunities. The scheme is also expected to promote entrepreneurship among the youth.
What is the pmegp loan?
The Pradhan Mantri Mudra Yojana (PMMY) is a scheme launched by the Government of India in 2015 to provide micro-enterprise loans at low rates of interest to boost self-employment and entrepreneurship. The PMMY is administered by the Micro Units Development & Refinance Agency (MUDRA) Bank, which was set up for this purpose.
Under the PMMY, loans of up to Rs. 10 lakh are available for micro enterprises engaged in manufacturing, trading or service activities. The interest rate on these loans is capped at 9% per annum. repayments can be made over a period of 5 years.
The scheme has been successful in promoting self-employment and entrepreneurship among small businesses. As of March 2019, over Rs. 6 lakh crore had been disbursed under the PMMY, benefiting more than 12 crore borrowers.
How to get a pmegp loan
The Pradhan Mantri Mudra Yojana (PMMY) is a scheme that provides loans of up to Rs 10 lakh to small businesses and entrepreneurs. The PMMY was launched in 2015 by the Prime Minister of India, Narendra Modi. The scheme is administered by the Micro Units Development and Refinance Agency (MUDRA) Bank.
To get a PMEGP loan, you must first approach a participating bank or financial institution. You will need to submit an application along with supporting documents such as your business plan, KYC documents, etc. Once your application is approved, you will receive the loan amount within 7-10 days.
What are the benefits of a pmegp loan?
The pmegp loan is a great option for those who are looking to finance their business. There are many benefits of this loan, which include:
- Low interest rates: The interest rates on pmegp loans are very low, which makes it an affordable option for borrowers.
- Long repayment tenure: The repayment tenure of pmegp loans is very long, which gives borrowers ample time to repay the loan amount.
- No collateral: This is a unsecured loan, which means that there is no need to pledge any collateral in order to avail the loan.
- Flexible repayment options: Borrowers can choose from a variety of repayment options depending on their convenience.
- Quick and easy approval: The approval process of pmegp loans is very quick and easy, which makes it a convenient option for borrowers.
What are the eligibility criteria for a pmegp loan?
The eligibility criteria for a pmegp loan are as follows:
- The applicant must be an Indian citizen.
- The age of the applicant should be between 18 and 65 years.
- The applicant should be engaged in a business or profession.
- The business or profession should be registered with the relevant authorities.
- The business should have a minimum turnover of Rs. 10 lakhs per annum.
How to use a pmegp loan?
A Pradhan Mantri Mudra Yojana (PMMY) loan is a collateral-free loan that can be used by eligible individuals for a variety of purposes, including business expansion, working capital, or even personal expenses. The maximum loan amount available under the scheme is Rs 10 lakh.
To apply for a PMMY loan, you will need to approach a lending institution that is participating in the scheme. You will need to submit certain documents, including proof of identity and address, proof of business ownership, and bank statements. Once your application is approved, you will receive the loan amount within 7-10 days.
Repayment of a PMMY loan can be made through equal monthly instalments (EMIs). The repayment tenure ranges from 12 to 60 months. There is no pre-payment or foreclosure charges applicable on PMMY loans.
Now that you know all about PMMY loans, here’s how you can use them to your advantage:
- Business expansion: If you are looking to expand your existing business, a PMMY loan can help you cover the costs associated with it, such as purchase of new equipment or setting up a new branch.
- Working capital: A PMMY loan can also be used for meeting your day-to-day business expenses, such as inventory purchases and salary payments. This enables you to free up some cash flow and improve your working capital situation.
- Personal expenses:
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