To start a business, you will get a loan of up to 10 lakh rupees, the government will not even ask for a guarantee, know the process



PM Mudra Loan Yojana: The central government started this scheme in the year 2015. Under this scheme, government loans from Rs 50,000 to Rs 10 lakh are provided without any guarantee. You don't need to pay any kind of processing fee in this loan. Apart from public sector banks, these people can also avail these loans from cooperative banks, regional rural banks (RRBs), small finance banks and NBFCs. The interest rates of these loans vary from bank to bank.

Mudra loans are of three types

There are total three types of PM Mudra Loans. The first category is infant loan. Under this when you first start your business, the government gives you a loan of up to Rs 50,000 without any guarantee for 5 years. Loans are also given to people who are already in business to expand their business. If you take a loan between 50,000 to 5 lakh rupees then it comes under the category of juvenile loan. Under the youth loan category, the government provides loans ranging from 5 to 10 lakh rupees for business expansion.

Documents Required for Mudra Loan

  • Business plan
  • Application letter
  • Passport size photograph
  • Proof of residence
  • KYC documents
  • Proof of identity
  • Income proof

Application Process for PM Mudra Loan Scheme

For Mudra loan, one has to apply on PM Mudra's official website https://www.mudra.org.in/ along with documents including ID proof, residence proof, passport size photo, business address proof. After opening this web click on Mudra Loan. Go to “Apply Now” and select any one of the options. After this fill the details and generate OTP. After completing this process you will be registered. After that, click on the loan application center and fill the required details. An application number is given after all the documents are submitted. Through which you can check your loan status.