Boosting MSMEs: Get ₹20 Lakh Via Mudra Loans Initiative
Updated: 22-02-2025 at 6:27 AM
1k
In the Union Budget 2024, Finance Minister Nirmala Sitaraman announced the credit limit to be increased to Rs. 20 lakhs for the (Micro Units Development and Refinance Agency) MUDRA loan scheme. MSMEs contribute a huge part to the country’s GDP, so helping them with their credit facilities will impact the country’s economy as well. Let’s understand the changes being brought in this government loan scheme.
What Is The Pradhan Mantri Mudra Yojana?
The Pradhan Mantri Mudra loan was launched in 2015 by the Indian government. It was introduced to help Micro, Small, and Medium Enterprises get affordable credit to run the business. The Mudra loan scheme aims to help MSMEs kick-start and grow their enterprises.
By providing larger loans, the government hopes to encourage entrepreneurship, job creation, and overall economic growth.
MSMEs could avail Rs. 10 lakhs under the Mudra loan scheme from commercial banks, small finance banks and non-banking financial corporations, but during the Union Budget 2024, Finance Minister Nirmala Sitaraman announced that MSMEs will be able to avail Rs. 20 lakhs now.
During the last financial year, the government approved Rs. 5.4 lakh crore for the Pradhan Mantri Mudra loan. Nirmala Sitaraman also announced that the government has set aside provisions for supporting 50 multi-product irradiation units in the MSME sector.
When the COVID-19 pandemic hit, MSMEs were affected deeply as there was no demand or supply for the commodities. The government decided to increase the loan limit from Rs. 10 lakhs to Rs. 20 lakh under the Pradhan Mantri Mudra Yojana to help the growing financial needs of MSMEs and help them recover the losses they incurred during the pandemic.
What Are The Benefits Of MSMEs?
The decision to increase the loan limit has several benefits for MSMEs.
-
Access To More Funds
MSMEs who incurred losses and want to grow their business can now access larger amounts of credit which can be used for expanding operations, purchasing new equipment, and hiring new staff.
-
Lower Interest Rates
The Pradhan Mantri Mudra loan is known for its low interest rate compared to normal bank loans. This makes it easier and more affordable for MSMEs to avail loans.
-
Simpler Process
Pradhan Mantri Mudra loan has a more simplified process compared to other bank loans. It has minimal paperwork and quicker approvals, ensuring there is no delay so that MSMEs can access funds faster.
Eligibility Criteria To Apply For The Mudra Loan Scheme
Individuals meeting the following eligibility criteria can apply for the Mudra loan scheme.
-
Individuals between the age of 18 and 65 years.
-
Traders, artisans, shopkeepers, vendors, small manufacturers, retailers, and other business entities engaged in the trading, services, and manufacturing sectors.
-
Women entrepreneurs.
-
People belonging to the SC/ST/OBC castes.
-
People with no past loan issues with any financial institution.
What Is The Application Process Of The Mudra Loan Scheme?
MSMEs that want to apply for the Mudra loan scheme can follow these steps.
-
Ensure all eligibility criteria are met before applying.
-
Collect all required documents such as business proof, identity proof, address proof and a business plan.
-
Visit a bank or a financial institution that offers the Mudra loan scheme.
-
Fill out the application form.
-
Submit the application form along with the required documents.
-
Wait for the approval of the loan.
Conclusion
Increasing the loan limit from Rs. 10 lakh to Rs. 20 lakhs will help the MSMEs kick-start their businesses. By providing easier access to funds, the government is helping MSMEs overcome challenges and help them revive the losses made during the pandemic. This govt scheme will help the MSMEs as well as the country’s economic development.
For any queries regarding the Mudra loan scheme, contact 18001801111, 1800110001 or send an email to help@mudra.org.in.
Frequently Asked Questions
0
0
1k
0
0
1k Views
0
No comments available
Our Company
Home
About
T&C
Privacy Policy
Eula
Disclaimer Policy
Code of Ethics
Contact Us
Cancellation & Refund Policy
Categories
Women
Insurance
Finance
Tax
Travel
Transport & Infrastructure
Food
Entertainment
Communication
Government ID Cards
E-commerce
Traffic guidelines
Miscellaneous
Housing and Sanitation
Sports
Startup
Environment and Safety
Education
Agriculture
Social cause
Disclaimer: Jaagruk Bharat is a private organization offering support for documentation and government scheme access. We are not affiliated with any government body. Official services are available on respective government portals. Our goal is to make processes easier and more accessible for citizens.
Jaagruk Bharat with its team work tirelessly to bring all government schemes, Sarkari Yojanas, policies and guidelines to you in a simplified and structured format.
Our team is at the forefront of gathering, verifying and breaking all central government and state government regulations uncomplicatedly.
Our mission and vision are to make the common citizen of India aware of all government-laid-out rules and policies in a single place. Thus, we Jagruk Bharat have created an all-inclusive portal for 1.5 billion Indian citizens to understand, utilize and avail benefits of govt schemes and policies and by bringing them under one roof.
Jaagruk Bharat (जागरूक भारत) is a one stop centralised destination where you can effortlessly find, understand, and apply for various government schemes. We are committed to ensuring transparency and empowering Indian citizens. Our goal is to keep India Jagruk about government policies, the latest news, updates, and opportunities.
All Copyrights are reserved by Jaagruk Bharat