Mudra Loan Yojana: How to get a loan of Rs 10 lakh without guarantee, know by clicking!

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Starting any business requires a substantial amount of money, which can be challenging, especially for those who are financially weak. The government provides loan facilities for such persons. The government has set up a loan scheme for street vendors and small traders where loans up to Rs 10 lakh can be availed without any guarantee. However, the BJP government has promised to increase this amount to Rs 20 lakh.

The loan amount can be doubled.

This announcement is related to the Pradhan Mantri Mudra Yojana, which has been significantly highlighted in the BJP's manifesto. It has been said that under this scheme the loan amount will be doubled. Till now lakhs of people have started their businesses by taking loans under this scheme. Initially, this scheme was launched only for street vendors, but now it has been extended to vegetable and fruit vendors and small shopkeepers.

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How to get a loan without a guarantee?

Loans under this scheme are provided in three categories: Shishu (up to ₹50,000), Kishore (up to ₹50,000 to ₹5 lakh), and Tarun (up to ₹10 lakh). No guarantee is required for these loans. When applying for a loan, you need to specify the type of business you want to start. You can avail the benefits of this scheme by going to the bank. Different banks give loans at different interest rates, which range from 10% to 12%.

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After submitting the application along with the required documents to the bank, they will do the document verification. If everything goes well then a Mudra Card will be issued. This card works like a debit card, allowing you to withdraw money for business purposes as and when needed.