The Pradhan Mantri MUDRA Yojana or PMMY as the acronym goes, is a micro financing scheme that is meant for small industries that do not get ample amount of support from banks and other financial institutions due to lack of security and experience in business. The MUDRA Loan scheme is regulated by the Micro Units Development and Refinance Agency and can offer loans up to INR 50 lakhs to the trade bodies that need it.
Mudra Loan is crafted into three options and each option is meant for the business that requires that kind of range of financial help. The three options available under the PMMY are as follows –
The banks that are officially approved to offer Business Loans must meet the following criteria as per their category –
The above criteria also applies to micro finance and small business companies.
The banks that are currently offering business loans under the Pradhan Mantri MUDRA Yojana have interest rates ranging from 11% to 37%. Some of the more popular banks that are offering MUDRA loans are as follows –