According to data presented in the official website for Pradhan Mantri Mudra Yojana, around 13 Crore individuals were provided with loans under this scheme as of May 2018. The PMMU is a scheme introduced by the government in 2015 to provide financial aid to the small scale non-corporate and non-farming enterprises of our country. Its significant reach within only 3 years shows the potential, and need for such policies across the nation.
With a total sanctioned amount of Rs. 6 Lakh Crore up to 2018, the PMMY is pivotal in providing financial aid to self-employed individuals seeking advance to fund their businesses. Out of the total beneficiaries of this scheme, about 78% were women entrepreneurs looking to fund their micro-businesses. Thus, this Government-backed loan for unemployed has helped several women to lift themselves from unemployment and finance their business ideas.
How Has Pmmy Aided Women Entrepreneurs?
Lack of capital has always been one of the primary factors contributing to unemployment among Indians. Thus, the PMMY scheme, especially for women in rural areas, has made it possible for them to fund their business ideas effectively.
The Sishu loan category under PMMY, particularly, has aided many women to start their businesses and lift themselves from unemployment. Since Sishu loans are offered without any collateral, they have facilitated to fulfil the requirements of a personal loan for unemployed.
Data shows that out of the total loan amount sanctioned under this scheme, around Rs. 1.7 Crore worth of loans were sanctioned to self-employed women in the country, especially to those who operate organisations belonging to sectors like textile, food, service units, etc. Thus, the scheme has proved to be extremely beneficial to women across most industries.
Additionally, alternative financing options like a loan against property to start a business has also aided women entrepreneurs to solidify their presence across various industries.
Features Of The Pradhan Mantri Mudra Yojana Scheme
There are several features of PMMY scheme that makes it the ideal loan for unemployed or self-employed individuals. It provides financing for various income-generating activities of the small and micro enterprises with credit requirements below Rs. 10 Lakh.
Under this scheme, individuals can avail advances from various financial institutions in India according to their business’ funding needs and stage of growth. Following are the three available under the scheme-
- Shishu loans
The Shishu loan is for those who are at the initial stage of their business or looking for credits to start one. Under this particular category of unemployed loan, individuals can avail up to Rs. 50,000 to finance their business plans. The loan is provided without any collateral and at 1% rate of interest per month, repayable within five years from the time of availing the loan.
To avail this loan, the beneficiary has to submit some details regarding the machinery to be purchased for the business, including quotation on their procurement and instalment cost.
- Kishor loans
Under this particular category, beneficiaries can avail a credit of up to Rs. 5 Lakh to expand their business operations. To avail the Kishor loan, individuals have to submit several documents supporting the technical and commercial viability of their business.
- Tarun loans
Under the Tarun category of PMMY, individuals can avail up to Rs. 10 Lakh to finance further expansion of their businesses. Like the Kishor category, Tarun loans also require business owners to meet certain eligibility criteria.
Beneficiaries under the above three categories of the unemployed loan can apply for the loans from financial institutions like Bajaj Finserv according to the requirements of their business.
However, if you want to avail a higher loan amount, you can look for alternative financing options. For instance, the Bajaj Finserv personal loan for unemployed can provide you with a high loan amount value of up to Rs. 3.5 Crore. A loan against property can help to finance your business plans easily.
Limitations of the scheme
Even though the scheme is extremely beneficial, individuals can avail an amount of up to Rs. 10 Lakh under it. This is a limitation for those with a higher loan amount requirement.
In situations like that, one can avail credits from Government-backed and private financial institutions like Bajaj Finserv. Additionally, Bajaj Finserv also brings pre-approved offers that can help you avail the loans faster and more easily. These offers are available on several financial products, including both secured and unsecured advances like home loans, personal loans, business loans, etc. You can check your pre-approved offer by sharing only your name and phone number.
Additional Read: How to Avail Loan for Unemployed?
Thus, if you are looking to avail an amount over Rs. 10 Lakh, you can apply for a loan against property from any financial institution in India to fulfill your requirement. However, make sure you comply with the eligibility criteria to avail the advance for you apply for it.