The Bharatiya Janata Party (BJP) has released its manifesto for the upcoming Lok Sabha elections, promising to double the Prime Minister Mudra loan ceiling to Rs 20 lakh. The PM Mudra Yojana (PMMY) has already provided over 460 million loans worth Rs 27 trillion, aiming to encourage entrepreneurship and generate opportunities for livelihood across all segments of society.
Prime Minister Narendra Modi stated that the Mudra Yojana has turned crores of people into entrepreneurs and that the BJP has decided to increase the loan limit to Rs 20 lakh. He believes this will be a new strength towards building the ecosystem required for industry 4.0.
The Pradhan Mantri Mudra Yojana (PMMY) was launched in 2015 to facilitate collateral-free micro credit of up to Rs 10 lakh to non-corporate, non-farm small and micro entrepreneurs for generating income.
Reliability of a government-endorsed scheme: The PMMY is a government-backed initiative, providing borrowers with a sense of security.
Borrowers do not need to provide any security or third-party guarantee, making it accessible to a wider range of entrepreneurs.
The interest rates are affordable and determined by lending institutions within RBI guidelines.
Funds can be accessed easily using a Mudra loan card.
The scheme is available to a range of businesses, including vendors, traders, and service providers.
The repayment terms are designed to accommodate the financial situation of small businesses.
Shishu: Loans sanctioned up to Rs 50,000.
Loans sanctioned from Rs 50,001 to Rs 5,00,000.
Loans sanctioned from Rs 500,001 to Rs 10,00,000.
Have a well-documented business plan.
Submit the application form along with necessary documents and passport-sized photographs.
Provide KYC documents such as passport, voter's ID card, driving license, Aadhaar Card, and PAN card.
Submit relevant documents if belonging to special categories like SC/ST.
Provide bank statements for the last 12 months.
Submit any additional documents as required by the bank.