5 THINGS YOU MUST KNOW ABOUT PRADHAN MANTRI MUDRA YOJANA
Published By Gurpreet Singh | 07 Feb, 2025
The Pradhan Mantri Mudra Yojana (PMMY) supports micro and small enterprises in India by providing accessible financial aid, crucial for aspiring entrepreneurs and existing businesses seeking expansion opportunities.
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Here are some things you must know about Pradhan Mantri Mudra Yojana:
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Loan Categories and Limit
PMMY provides four loan categories: Shishu (up to ₹50,000), Kishore ( ₹50,000 to ₹5 lakh), Tarun ( ₹5 to ₹10 lakh), and Tarun Plus (above ₹10 lakh).
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Eligibility Criteria
The scheme supports diverse beneficiaries, ensuring micro and small enterprises access necessary financial aid.
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Collateral-Free Loans
PMMY offers collateral-free loans, allowing small entrepreneurs to easily secure financing without needing to pledge assets as security.
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Credit Guarantee Support
PMMY loans up to ₹20 lakh receive CGFMU coverage, reducing lender risk and encouraging credit extension to micro-enterprises.
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Application Process
Loans under PMMY are offered through MLIs like banks and financial institutions; applicants can approach any of them for applications.