The PM of India has launched his PMMY which encompasses the MUDRA loan scheme. Done through the combined effort of SIDBI and CGTMSE, these loans are meant for non-agriculture and non-corporate micro and small business setups. While the maximum cap on MUDRA loans is Rs. 10 Lakh, CGTMSE also has scheme offering unsecured loans going up to Rs. 1 Crore.
There are numerous government loan schemes for small businesses that are on offer along with regular loans from financial institutions. Most prominent among these is the MUDRA scheme which has 3 fundamental divisions.
The lowest finance amount cap comes under the name of ‘Shishu’ which offers Rs. 50,000 in loan amount. The eligibility criteria for these loans are quite simple too. Under the second loan amount bracket, ‘Kishor’, come values ranging between Rs. 50,000 and Rs. 5 Lakh. These have detailed requirements which include the requisite equipment details as well as projected revenues under the business model.
The final loan bracket under the name of ‘Tarun’ permits loan amounts ranging between Rs. 5 Lakh and Rs. 10 Lakh. These have all the requirements of the Kishor scheme along with identity and address details.Along with other schemes and especially the different facets of MUDRA loan, the government has already developed the micro and small businesses in the country. Alternatively, you can avail business loans from renowned NBFCs at less stringent terms and conditions and simple documentation.