Mudra Loan under Pradhan Mantri Mudra Yojana (PMMY) is a loan scheme offered by banks in which the applicant can avail the maximum loan amount up to Rs. 10 lakh along with the maximum repayment period from 12 months to 5 years. There is no collateral/security to be submitted with the banks and the processing fee is also Nil.
Mudra loan is classified into three loan schemes named as ‘Shishu’, ‘Kishor’ and ‘Tarun’. Under the Shishu scheme the applicant can take loan up to Rs. 50,000 for starting a new business, whereas in the Kishor scheme the maximum loan amount is offered up to Rs. 5 lakh. Existing and established enterprises or businesses can take loan up to Rs. 10 lakh under the Tarun loan scheme for business expansion purposes.
