Everyone Can Get ₹10 Lakh from the Government ! Know About the Mudra Loan Scheme

by

Everyone Can Get ₹10 Lakh from the Government ! Know About the Mudra Loan Scheme

Do you have a small business or want to start one but don’t have enough money? The Pradhan Mantri Mudra Yojana (PMMY) can help you get up to ₹10 lakh—without any collateral! Launched in April 2015 by the Government of India, this scheme supports small business owners by providing easy loans through banks and other financial institutions.

Let’s understand how this scheme works and how you can benefit from it.

What is Mudra Yojana?

“MUDRA” stands for Micro Units Development and Refinance Agency Ltd. It’s a government-backed organization that helps fund small and micro businesses that are usually left out of traditional banking support.

Whether you’re a shopkeeper, tailor, mechanic, vegetable seller, or small manufacturer—you can apply for a loan under Mudra Yojana and grow your business.

Main Objectives of the Scheme

  • Support small and micro businesses with easy loans

  • Help people without regular jobs to become self-employed

  • Encourage youth, women, and people from weaker sections to become entrepreneurs

  • Boost local economy and job creation at the grassroots level

Types of Mudra Loans

Loans under Mudra Yojana are available in three categories based on your business needs:

  1. Shishu (Up to ₹50,000):
    For new or early-stage businesses. This is ideal if you want to start a small venture.

  2. Kishor (₹50,001 to ₹5 lakh):
    For growing businesses that need more capital to expand.

  3. Tarun (₹5 lakh to ₹10 lakh):
    For established businesses looking to scale up or modernize.

These categories ensure that businesses at every stage can get the right financial support.

Key Features of Mudra Loans

  • ✅ Collateral-Free: No need to mortgage your home or property

  • ✅ Low-Interest Rates: Interest is based on your profile and business, usually lower than personal loans

  • ✅ Flexible Repayment: You can repay in 3 to 5 years

  • ✅ Wide Availability: Available through all major banks, NBFCs, and microfinance institutions

  • ✅ No Processing Fee: Especially for Shishu loans, there are no hidden charges

Who Can Apply?

Any Indian citizen with a small business or a plan to start one can apply. Some examples include:

  • Tailors, electricians, plumbers

  • Grocery or kirana stores

  • Beauty parlors or salons

  • Small manufacturing units

  • Mobile repair shops, food stalls

  • Farmers involved in non-farming activities like dairy or poultry

You don’t need to show any collateral, but a solid business idea is important.

New Button

How to Apply?

  1. Visit your nearest bank or financial institution

  2. Choose the right Mudra loan category (Shishu, Kishor, or Tarun)

  3. Fill out the loan application form

  4. Submit documents like:

    • ID proof (Aadhaar, PAN)

    • Address proof

    • Business plan or details of existing business

  5. Once approved, the money will be directly credited to your bank account

You can also apply online through your bank’s website or via government platforms like Udyamimitra Portal.

Success and Impact

Since its launch, over 40 crore Mudra loans have been disbursed. A large number of beneficiaries are women, youth, and people from SC/ST/OBC communities.

This scheme has:

  • Helped lakhs of people start or expand businesses

  • Created self-employment opportunities

  • Improved financial literacy and banking awareness

It supports India’s big missions like Make in India, Startup India, and Digital India.

Conclusion

The Pradhan Mantri Mudra Yojana is a game-changer for small entrepreneurs. With loans up to ₹10 lakh, no collateral, and low-interest rates, anyone with a business idea can make their dreams come true.

If you’re planning to start a small business or grow an existing one, don’t miss this opportunity. Visit your bank and ask about Mudra Loan today!