Govt Offering up to Rs 10 lakhs Easy Business Loans Without Guarantees

The Indian government consistently introduces various schemes to support different segments of the population.

Among these initiatives is the Pradhan Mantri Mudra Yojana, aimed at facilitating business ventures.

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Starting a business often requires significant capital, and while banks are a common source of funding, the extensive document requirements can pose challenges.

In response, the Central Government launched the Pradhan Mantri Mudra Yojana to promote entrepreneurship across the nation, providing loans up to Rs 10 lakh without the need for collateral. If you’re considering launching your own business, here are the essential details.

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Understanding the Pradhan Mantri Mudra Yojana

The government initiated this scheme in 2015, offering loans ranging from Rs 50,000 to Rs 10 lakh without collateral.

Notably, there are no processing fees associated with these loans. Eligible individuals can access this financial support not only from public sector banks but also from cooperative banks, regional rural banks (RRBs), small finance banks,

and non-banking financial companies (NBFCs). Interest rates may vary among banks, generally ranging from 10% to 12%.

Three Categories of Mudra Loans

Under PM Mudra, loans are categorized into three segments. The first is the “Shishu Loan,” designed for individuals starting a business for the first time.

The government offers loans up to Rs 50,000 for a period of five years without requiring collateral.

business owners looking to expand can also avail themselves of these loans. Loans ranging from Rs 50,000 to Rs 5 lakh fall under the “Kishore Loan” category.

For those seeking to scale their business with loans between Rs 5 lakh and Rs 10 lakh, the “Tarun Loan” category is available.

Application Process and Required Documents

To apply for this scheme, any Indian citizen aged between 24 to 70 years can submit an application.

You will need essential documents such as Aadhar, PAN card, passport, and address proof.

To apply, visit the official website at, download the application form, fill it out with your information,

and submit it to your nearest government or private bank. The bank will assess your loan application based on the provided documents and approve it accordingly.

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