If you're planning to start your own business or expand your existing one, the Central  Government 's Pradhan Mantri Mudra Yojana (PMMR) can be extremely helpful. Under this scheme, the government provides easy loans up to ₹10 lakh without any guarantee. Let's explore its rules, categories, and the complete application process:

Loans are available under the Mudra scheme in three categories.
This scheme is divided into three phases according to the business needs:

Shishu Loan: Under this, a loan of up to Rs 50,000 is given to start a new business.

Kishore Loan: This category offers loans ranging from Rs 50,000 to Rs 5 lakh to businesses that are already running and looking to expand.

Tarun Loan: Loans ranging from Rs 5 lakh to Rs 10 lakh are given to expand business on a large scale.

Key features of this scheme
No guarantee: To avail this loan, you do not need to mortgage any property or guarantee to the bank.

Low Interest Rates: The interest rates on Mudra loans are much more affordable than normal commercial loans, which are decided as per the rules of the banks.

No Processing Fee: Most banks and financial institutions do not charge any processing fee on Shishu category loans.

Who can apply for the loan?

The applicant must be a citizen of India.

Any person who is engaged in manufacturing, trading, service sector or any business related to agriculture (like shop, tailoring, beauty parlor, manufacturing unit etc.) can apply.

Process to apply

You can visit any government bank, private bank, rural bank or small finance bank near you.

Take the Mudra loan application form from the bank and fill in your business details and cost information in it.

Along with this, submit necessary documents like Aadhar card, PAN card, business address, passport size photo and bank statement.

Your loan is approved after the bank verifies the documents.

PC: India TV