Business Loan: Here you can get a loan of Rs 10 lakh without guarantee, know the complete process of applying..

If you are an entrepreneur or planning to start your own business, then this news is of your use. Modi government has come up with a great scheme for self-employment lovers, the purpose of this scheme is to provide financial assistance to those starting a business.

Under this scheme of the government, a loan of Rs 50 thousand to Rs 10 lakh is being given without any bank guarantee. So that you can take your enterprise or business forward. Pradhan Mantri Mudra Yojana is being run under the vision of Prime Minister Narendra Modi to motivate the youth for self-employment.

Loan of Rs 50 thousand to Rs 10 lakh without guarantee -
In an important initiative of the Government of India, government assistance is being provided to small businesses and entrepreneurs. In this scheme, non-incorporated small businesses are being given a loan of Rs 50 thousand to Rs 10 lakh without any security or guarantee. This scheme is being run by banks, non-banking financial companies (NBFCs), microfinance institutes, and other financial institutions.

Benefits of PM Mudra Yojana
1) Government approval: This scheme offers the benefit of government approval, which gives confidence to entrepreneurs.

2) No security required: Borrowers do not require any security or third-party guarantee.

3) Competitive interest rates: Interest rates are quite low, and are determined by the lending institutions as per RBI guidelines.

4) Ease of access: Funds can be accessed from anywhere using the Mudra loan card.

5) Comprehensive coverage: Available for various businesses such as vendors, traders, and service providers.

6) Flexible tenure terms: Designed keeping in mind the financial position of small businesses.

Three categories of PMMY loans
Shishu: Up to Rs 50,000.

Kishore: Rs 50,001 to Rs 5,00,000.

Tarun: Rs 5,00,001 to Rs 10,00,000.

Important documents for Mudra loan?
To avail Mudra loan, the applicant will need KYC documents like a passport, voter ID card, driving license, Aadhaar card, and PAN card.

If he falls in a particular category then the relevant documents (loan document). Proof of business address. Business establishment certificate (for applicable eligible enterprises), bank statement of last 12 months, and other required documents.

How to apply for a PMMY loan?
1) Visit a PMMY-authorized financial institution or NBFC.

2) Make sure to have a well-documented business plan.

3) Fill out the Mudra loan application correctly, providing all the required details.

4) Submit the application form along with the required documents and passport-size photograph.

5) After verification of your loan documents, the loan request will be approved and the amount will be transferred to the bank account.

How to apply online for a PMMY loan?

1) Visit the official website of Pradhan Mantri Mudra Yojana (PMMY Loan).

2) Fill out the online form by including your name, address, contact number, and KYC details.

3) Prepare the documents required for the Mudra loan application and submit them along with the application.

4) After verification of documents, the bank will transfer the loan amount to your account.

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