The government-initiated PMMY scheme launched in the 2016 Budget has successfully reached out to a significant number of beneficiaries. As announced by the PM, about Rs. 1 Lakh Crore of loans have been disbursed under the PMMY scheme. The Pradhan Mantri MUDRA loan intends to offer non-corporate businesses the much-needed financial assistance.
As a significant percentage of India’s population is below 35 years, the government aims to boost entrepreneurship amongst the youth.
Small business owners can apply for MUDRA loan according to their venture’s stage of growth and financing needs. Check out the MUDRA loan demystified for clarity. Primarily, there are 3 classifications of loans – Shishu, Kishor and Tarun. The maximum amount of loan sanctioned to Shishu category units is Rs. 50,000. Ventures that are about to start fall under Shishu.
The Kishor category comprises those who wish to expand their enterprise and offers Rs. 50,000 to Rs. 5 Lakh. The 3rd category, Tarun, comprises of well-established firms that are looking to diversify or expand further. Loans up to Rs. 10 Lakh are available under this category.
For higher loan amount, you can approach top NBFCs for finance up to Rs. 30 Lakh. Such business loans come with several features and benefits. Avail the financing option that is more appropriate for your small business needs.