The government of India has released many loan schemes in the past years, and the most popular scheme is Pradhan Mantri MUDRA Yojana (PMMY). The scheme was introduced to provide small businesses with the much-needed financial assistance. Under the scheme, small and medium-sized business owners can borrow up to Rs 20 lakh from banks or NBFCs if they provide a sufficient business plan with the list of required documents. Since its inception, PMMY has achieved remarkable milestones in promoting entrepreneurship and providing financial support to small businesses. In the financial year 2024-2025, a significant number of PMMY loans were sanctioned, with 54661648 loans approved. The total amount sanctioned under the scheme reached an impressive Rs 552801.78 crore, contributing to the growth of numerous small enterprises. Furthermore, the amount disbursed during the same period was Rs 541802.58 crore, highlighting the government's commitment to empowering entrepreneurs and fostering a robust business ecosystem across the country.Who can borrow MUDRA loan from a bank or NBFC?To be eligible under the PMMY scheme, you need to make sure you meet the following requirements:You have not defaulted on any loan or line of credit with any bank or NBFC.Submit documents that prove you have experience and knowledge in the current business for which you're applying for the loan.Proof of education or a valid license if the business requires certain certificationsThe interest rate charged under the MUDRA loan scheme will be at the discretion of the bank or financial institution from which you're financing this loan. But the bank or the lending institution should charge a reasonable rate of interest on the approved loan amount because the purpose of this scheme is to empower the entrepreneurs of India.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
Which is the popular government loan scheme: benefits, coverage, eligibility
