Pradhan Mantri Mudra Yojana (PMMY) is the striving project of Indian Government where it ensures banking to the unbanked people. Many nationalised banks, commercial banks, NBFCs are facilitating many small-scale entrepreneurs under this governmental scheme. Mudra loan is categorized in three major categories and the loan amount offered under each category is further explained.
| Categories | Loan Amount |
|---|---|
| Shishu | Up to Rs. 50,000/- |
| Kishor | Above Rs. 50,000/- to up to Rs. 5 lakh |
| Tarun | Up to Rs. 10 lakh |
Usually, small to medium-range business owners or entrepreneurs get benefited from these categories. This Mudra scheme is basically tailored to help people to start something of their own and thereby create job opportunities for others. It also aims at bringing a large number of people under the institutional financial structure.
Under the Mudra loan’s ‘Shishu’ category, the interest rate given by the government is 1% per month or 12% per annum. In other categories, the rate depends on the respective banks and financial institutes. Yes bank usually charges a minimal amount of interest rate on Mudra loan .
