In April 2015, the
Government of India launched a special scheme in collaboration with the ‘Make
in India’ campaign launched in 2014. This scheme was named the Pradhan Mantri
Mudra Loan Yojana. Under this scheme, start up owners, entrepreneurs and other
micro and small business owners across India can apply for loans to fund their
business, purchase raw material and equipment and so on. The objective behind
this scheme is to provide the necessary funding to small businesses so that
they can keep their businesses running. Here are some of the most common FAQs
regarding Mudra Loans.
FAQ
1: Under what categories can I avail a loan under the Mudra scheme?
Under the Mudra scheme,
you can apply for a loan if you belong to certain specific categories. These
include loans for traders and shopkeepers, loans to purchase transport
vehicles, loans for agriculture and other allied activities, loans under the
food production sector, loans under the textile production sector, loans to
purchase the necessary machinery and/or equipment and loans for personal
service, community, and social activities among other things.
FAQ
2: Where can I get the loan and what is the interest rate and tenure of
repayment?
You can apply for a Pradhan Mantri Mudra Loan
by visiting any leading bank in India. These loans can be obtained at low
interest rates. Prominent public sector banks such as Bank of India and Bank of
Baroda are offering these loans at interest rates starting at 8.35% and 8.40%
respectively, while you may have to pay a higher interest rate if you choose a
private sector bank for the loan. The loan repayment tenure differs from one
lender to another and the maximum repayment tenure is generally 3 to 5 years.
FAQ
3: What is the maximum loan amount I can get under this scheme?
The maximum loan amount
you can get under the Mudra Loan Scheme depends upon the stage under which the
loan is availed. There are three stages in which you can obtain the loan. They
are as under:
·
The
Shishu stage: Under this stage you can get a maximum
loan of ₹50,000.
·
The
Kishor Stage: Under this stage you can get a maximum
loan of ₹500,000.
·
The
Tarun Stage: Under this stage you can get a maximum
loan of ₹1,000,000.
FAQ
4: What are the basic criteria to be eligible for this loan?
To be eligible for a loan
under the PM Mudra Loan scheme, you need to be a resident Indian belonging to
the age group of 23 to 28 years. You should be able to show a minimum monthly
income of approximately ₹17,000 or more and own a business making a minimum
annual turnover of ₹1,500,000. You also need to show a work-experience of
2 years at minimum if you are a salaried individual or 5 years if you are a
self-employed professional.
FAQ
6: What documents do I need to submit in order to avail this loan?
You need to provide basic
documents such as a government recognised identity proof and address proof
document. You should also provide 2 recent passport size photographs, income
proof documents, business proof and registration documents and other
miscellaneous documents as mentioned in the Mudra Loan Yojana application form.
FAQ
6: How can I apply for a loan under this scheme?
There are two ways in
which you can apply for a loan. You can visit your nearest bank or preferably a
bank with which you have an existing banking relationship or you can apply for Pradhan
Mantri Mudra Yojana Loan Online directly through the lender’s website.