In 2006, in agreement with the Micro, Small, and Medium Enterprises Development (MSMED) Act, the Government of India has introduced MSME or Micro, Small, and Medium Enterprises. For the Indian economy, MSMEs are an important sector as they immensely contributed to the country’s socio-economic development.
It does not only work hand-in-hand towards the development of the nation’s rural areas but also under ‘Atma Nirbhar Bharat Abhiyan’ Scheme of 2020 by the Government of India has given a new definition for MSMEs and also provide large employment opportunities at lower capital cost than large industries
On the 8th of April 2015, the Honourable Prime Minister launched a scheme called Pradhan Mantri MUDRA Yojana (PMMY) for providing loans up to 10 lakh to the non-corporate, non-farm small/micro-enterprises.
The primary aim is to fund the under-funded through the concept of low-cost credit.
Micro or small businesses in the manufacturing, service, or trading sector can avail of this loan and there are three types of MUDRA loans based on business.
|Shishu plan||For start-ups and new businesses loans up to Rs. 50,000 can be availed under the Mudra Shishu Loan scheme.|
|Kishor plan||For buying pieces of equipment, new machinery or raw materials existing enterprises can get loans ranging from Rs. 50,001 to Rs. 5,00,000 under the Kishor Loan Scheme.|
|Tarun plan||For established businesses and enterprises loans ranging from Rs. 500,001 to Rs. 10,00,000 are available under Tarun Loan Scheme.|
To apply for any loan, groundwork is important, and before you approach the bank that is providing the loan keep all required documents ready with full preparation.
Do cross-check with your bank for other required documents required to be submitted,
The MUDRA Yojana has multiple benefits and advantages over other MSME financing schemes in the market, I list a few below to understand it better:
As I spoke about, women borrowers let me share little details about Mudra Loan for Women.
The government of India has introduced a unique loan scheme for women entrepreneurs, called the Mudra Yojana scheme for women under the Pradhan Mantri Mudra Yojana scheme.
They also termed this loan as Mahila Udhyami Yojana, which provides loans up to Rs 10 lakh to women entrepreneurs with low interest and with no collateral, and flexible repayment tenure. Various banks, financial institutions, and microfinance institutions provide loans under the MUDRA scheme
If you have a business plan and looking for financial support, the loan MUDRA scheme is best to be availed and check out the sectors which they support:
According to the reports MSME contributed around 30% to the country’s GDP, and there are such huge numbers they’re vital to our economy. To support MSME this MUDRA Yojana is a great way to boost our country’s talent and economy and eventually, it will generate more job opportunities.
Together we can grow while growing our country, Growth Matters and #GrowingBusinessesTogether.
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