Finance Minister Nirmala Sitharaman has made several major announcements under the Self-reliant India package on Wednesday and Thursday. One of the announcements is also about the Pradhan Mantri Mudra Yojana. The finance minister has announced a two percent interest subvention on infant currency loans. This interest subvention will benefit small businesses who take loans. A loan of up to Rs. 50 thousand can be taken in this scheme. Let’s know what the Pradhan Mantri Mudra Yojana is and how you can take advantage of it.
What is Pradhan Mantri Mudra Yojana:
The Pradhan Mantri Mudra Yojana (PMMY) was launched by Prime Minister Narendra Modi on April 8, 2015. Under this scheme, loans up to Rs. 10 lakh are provided to those who are doing business. These loans are provided by commercial banks, RRBs, Small Finance Banks, MFIs, and NBFCs. Customers can go to these institutions and talk about loans or go to the www.udyamimitra.in portal and make an online appliance. The scheme easily gets a loan without a guarantee.
Meet the three-way loan:
Three kinds of loans are distributed in the Pradhan Mantri Mudra Yojana. Shishu Mudra Loan, Kishore Mudra Loan, and Tarun Mudra Loan. Shishu Mudra Loan is mainly for small businesses. A loan of up to Rs. 50,000 can be taken. In the juvenile Mudra loan, a loan of Rs. 50,000 to Rs. 5 lakhs can be taken. Talking about its Tarun Mudra loan, it gets a loan of Rs. 5 lakhs to Rs. 10 lakhs.
This is how the loan is available:
If you want to start a small business and you need money for that, you can take a loan under the Pradhan Mantri Mudra Yojana. For this, you will have to go to the nearest bank branch with information and important identity documents related to your business. You will be informed about your business in the bank. You may also be asked to bring up a business-related project report. Then your loan will be sanctioned based on your business. Here, the scheme takes different interest rates by different banks.
Rs 1500 crore to be saved by debtors from interest subvention:
The government has announced a two percent interest subvention on infant currency loans on Thursday. That is, now this amount will be given by the government. At present, interest in infant currency loans is being charged by banks at the rate of about 10 to 11%. This exemption will be given by the government for 12 months. According to the government, the relief will benefit about three crore people. A two percent interest subvention would save Rs 1500 crore for the borrowers.
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