If you’re an entrepreneur stuck on how to grow your business because cash is tight and banks won’t lend you money, the Pradhan Mantri Mudra Yojana (PMMY) could open the door you need. This program from the Government of India aims to get small loans into the hands of business owners just like you.Here’s how it works: Mudra is an NBFC, or non-banking financial company, that pools funds and sends them to banks, MFIs (microfinance institutions), small finance banks, and other NBFCs. Those lenders, in turn, pass the cash on to small business owners. The biggest perks under the PMMY is that you don’t have to put up any assets or personal guarantees. Your business idea and cash flow are usually enough.Ready to get the ball rolling but unsure how to apply? We’ll walk you step-by-step through the application process and share the different loan amounts you could qualify for under the Mudra plan. Keep reading to find out how the PMMY can help turbocharge your business dreams.PM Mudra Yojana breaks loans into four groups so you can choose the one that fits you best. The Shishu Mudra Loan gives you up to ₹50,000. The Kishor Mudra Loan offers between ₹50,000 to ₹5 lakh. The Tarun Mudra Loan covers ₹5 lakh to ₹10 lakh, and the newer Tarun Plus Mudra Loan covers ₹10 lakh to ₹20 lakh. The program helps lots of different people. It covers small shopkeepers, home-based businesses, women, farmers, livestock keepers, small artisans, startups, street vendors, anyone in the retail and trading business, small manufacturers, partnership firms, and LLPs. You can apply in two ways: offline or online. For offline, visit the nearest bank or NBFC branch. Pick up the Mudra loan form, fill it in, gather and attach the required documents, and hand it in. For online, head to the **Mitra portal**. Register, fill in the loan form, upload the documents, choose which bank or NBFC you prefer, and submit. The bank will call or message you after reviewing. Shishu users will see a different form, but the Kishor and Tarun loans share the same application format.You’ll need to gather a few key papers to apply for a Mudra loan. First, you need to show your Aadhaar and PAN cards. If you don’t have those, a valid passport, voter ID, or driving license will work instead. If you belong to the SC, ST, or OBC categories, make sure to get a caste certificate, too. Along with these IDs, a 6-month bank statement must be submitted. Finally, if you own a business, you may be asked to provide details about how old it is and some basic information about its finances.Once you send in your application, the bank or NBFC will usually approve the loan within 7 to 15 days, but sometimes it can take longer. The Mudra scheme doesn’t set a fixed interest rate; that’s decided by the bank or NBFC you choose. For your reference, here are some recent rates: Union Bank charges between 10.75% and 12%, Canara Bank between 10.30% and 12%, and Bank of Baroda between 9.40% and 11.75%, but be sure to confirm the latest rates before you apply.
