For women who want to start a business venture and are in need of funding, there are various options including the Pradhan Mantri Mudra Yojana scheme for women who are citizens of India. The Government of India has launched several programmes to help and support ambitious women who want to start their own businesses. This article provides information on different aspects of the scheme including who is eligible and how an online application can be made.
What Is The Pradhan Mantri Yojana Scheme?
In 2015, the Government of India started the Pradhan Mantri Mudra Yojana scheme to help small businesses grow. Through this programme, both for-profit and non-profit organisations can apply for loans up to Rs. 10 lakh to get their businesses started. The Pradhan Mantri Mudra Yojana schemehas wide support throughout the country. Its goal is to help small businesses in India get access to low-interest loans. The Pradhan Mantri Mudra Yojana scheme works to bring businesses into the formal banking system and “finance the unfunded.” The application process is easy and people can fill out an online application form for a Pradhan Mantri Mudra Yojana loan or apply through their local bank and use the EMI calculator to get started.
What Is The Mudra Yojana Scheme For Women?
The scheme offers loan principals between Rs. 50,000 and Rs. 10 lakh to women who want to start or expand their businesses. This loan is provided in three distinct types:
- Shishu: This is a loan of up to Rs. 50,000 and is available for businesses that are just getting started.
- Kishore: This is a loan that has a lending range of Rs. 50,000 to 500,000 for well-established businesses in need of expansion capital.
- Tarun: This is a loan for an amount between Rs. 5,00,001 and Rs. 10 lakh and is available for established firms that meet the loan eligibility requirements.
Organisations Eligible To Issue Loans Through Pradhan Mantri Mudra Yojana Scheme
These are the organisations that are eligible to issue loans for the Pradhan Mantri Mudra Yojana scheme:
- RRBs or Railway Recruitment Boards (in charge of hiring railway employees)
- Institutions that provide microloans (MFIs)
- Corporate banks
- Microlending institutions
Businesses Eligible For Loans Through Pradhan Mantri Mudra Yojana
These are the businesses that are eligible for loans through the Pradhan Mantri Mudra Yojana scheme:
- Business vendors
- Agriculture sector
- The food production industry
- Small-scale manufacturers
- Self-employed entrepreneurs
- Restorative and repair shops
- Service-based businesses
- Truck drivers
Objectives Of Pradhan Mantri Mudra Yojana
The Pradhan Mantri Mudra Yojana scheme loans can be used for a wide range of purposes that contribute to the development of the economy and the creation of new jobs. The most common uses for a Pradhan Mantri Mudra Yojana loan are as follows:
- Equipment financing for micro and small businesses
- Business loans for retailers, wholesalers, and other service sector enterprises
- Card-based working capital loan finance for transport vehicles
- Operations like poultry farming, beekeeping, pisciculture, etc.
- For those who use tractors, tillers and bicycles in their businesses
Why Can Apply For Pradhan Mantri Mudra Yojana
Women from various socio-economic backgrounds are encouraged to apply for loans under the Pradhan Mantri Mudra Yojana scheme. These are the requirements women must fulfil to be eligible to apply for loans:
- Female entrepreneurs in charge of production or manufacturing operations, including weavers, crafters, artisans, and more.
- Female entrepreneurs who want to develop or improve enterprises that provide services such as tailoring, phone repair, photocopying, auto repair and servicing facilities, beauty salon services, and more.
Pradhan Mantri Mudra Yojana Eligibility Requirements
To be eligible for a Pradhan Mantri Mudra Yojana loan, applicants must meet these requirements:
- The applicant must be between the ages of 18 and 65.
- The applicant should be equipped with the abilities needed to carry out the suggested business plan.
- The applicant must be creating or funding a non-farm income-producing enterprise in the manufacturing, trading or service industries.
- The applicant must have a solid repayment record without any loan defaults.
Pradhan Mantri Mudra Yojana Documents
The following documents are required when applying for a Pradhan Mantri Mudra Yojana loan:
- Completed application form
- Passport-sized photos
- KYC documents of the applicant and the co-applicant such as utility bills (water and electricity), passport, voter ID, Aadhaar card, driver’s licence or PAN card
- Proof of special category membership, such as SC / ST / OBC / minority (if applicable)
- Recent 6-month bank statement
- Business address and tenure documentation (if necessary)
- Other paperwork required by the bank or NBFC
It should be noted that the loan application under the Pradhan Mantri Mudra Yojana scheme is the same for both Shishu and Kishore loans. But there is a different application form for the Tarun loan. To apply for loans, applicants can either make an online application through their bank’s website or apply in person at their nearest bank branch or other lending institution.
In addition to the Pradhan Mantri Mudra Yojana scheme, the Government of India also has other initiatives such as Pradhan Mantri Awas Yojana (PMAY) to make affordable housing available to the urban poor. Another element of this scheme is the Pradhan Mantri Awas Yojana (PMAY) Gramin which follows the same concept but is for the rural poor.
For women who want to start or expand their small or medium-sized businesses, there are three types of loans that are available in the Pradhan Mantri Mudra Yojana scheme which has quick and easy online application options. Once applicants have done their research and prepared their documents, they can either apply online or visit the bank (or other financial institution) closest to them. For more articles like this one with details on loans for women who want to start a new business or grow an existing one, Piramal Finance has more information and guidance on the financial aspects of business loans and more!