The Central Government has started the PMMY scheme (PMMY) to start small enterprises. Under this, a small amount of loan is given to people to start their venture (business). This scheme started in April 2015.
What is the purpose of the Mudra Loan Scheme?
Central Government's currency scheme has two objectives. First, give loans easily for self-employed. Second, creating jobs through small enterprises.
If you are facing the problem of capital to start your business, then with this initiative of the central government you can fulfill your dream.
The government's thinking is that, on getting loans easily, large scale people will be motivated to self-employment. This will create a large number of employment opportunities.
Prior to the monetary policy, much of the formalities had to be completed in the small enterprise for taking loans from the bank. Guarantee was required to take a loan. Because of this, many people wanted to start the venture but were shocked to take loan from the bank.
Mudra Loan - Focus on Women
The full name of the Prime Minister's currency scheme is the Micro Units Development Refinance Agency. The special point of the money scheme is that under this four out of four people taking loan are women.
According to the website prepared for this scheme, loans upto 228144 crores have been sanctioned under the money scheme till March 23, 2018. The government has distributed loans of Rs 2,595.66 crore under the money scheme till March 23 this year.
What are the benefits of the Prime Minister's Money Scheme? Under the money scheme, there is a loan without guarantee. Apart from this, no processing charge is also taken for the loan. The repayment period can be extended up to 5 years in the money scheme. The person who receives a loan gets a currency card, with the help of which can be spent on business needs.
Who can take loan under the money scheme? Any person who wants to start his business can take a loan under this scheme. If you want to move forward in the current business and need money for it, you can apply for loan up to Rs 10 lakh under the Prime Minister's Money Scheme.
Three types of loans in Mudra Loan
- Infant Loan: Under the Shishu Loan, loans up to Rs 50,000 are given.
- Kishor Loan: Under Kishore Debt, loans up to 50,000 to 5 lakh rupees are given.
- Tarun Loan: Under Tarun Debt, loans up to 5 lakh to 10 lakh rupees are given.
What is the interest rates in Mudra loan?
There is no fixed interest rate under the Prime Minister's Money Scheme. Different banks can charge different interest rates for currency lone. Interest rates also depend on the nature of the loan taker's business and the risks associated with it. Normally the minimum interest rate is 12%. How can you take a loan? For loan under the money scheme, you will have to apply in government or bank branch. If you want to start your own business then you will have to give several other documents including house ownership or rental documents, work related information, basis, PAN number.
The Mudra Loan scheme is available with most of the Nationalized Banks and some of the major Private Sector Banks only. The Branch Manager of a bank takes information about your workings. You need to submit your KYC documents, filed Income tax Returns. Depending on your eligibility, your loan is approved.The Bank Manager will complete the necessary formalities like filling the Application form, taking the required documents from you. According to the nature of the work, the bank manager can ask you to create a project report.
For more information about this plan, you can visit this website: http://www.mudra.org.in
So this is a new initiative launched by the present Indian Government which is getting tremendous response.
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