In India, small scale businesses have tremendously driven economic growth, creating ample job opportunities for people. As per stats, the SME sector employs nearly 69% of India’s population.
Another significant sector that follows is agriculture, where 60% of the country’s population is involved.
Aiming to benefit this small business sector, the government has introduced PMMY scheme or MUDRA loans to provide adequate financial support.
MUDRA loans are classified into three segments according to a business’ stage of growth. Firstly, Sishu comprises businesses who are about to start or in the process.
Borrowers can avail a maximum of Rs.50,000 under this category. Secondly, Kishor represents existing businesses which are willing to expand. The maximum loan amount sanctioned is Rs.5 lakh.
Thirdly, Tarun includes entrepreneurs looking for diversification or further growth of their well-established venture.
They can take up to Rs.10 lakh under this category. It is important to know everything about PMMY before availing the benefits.
Once availed, borrowers can utilise business finance for diverse purposes like marketing & advertising, advanced technology purchase, inventory restocking, etc.
MUDRA loans come with exclusive features and benefits like attractive interest rates, collateral-free, no processing fee, etc. So, assess your requirements and apply for an advance to grow your business strategically.