The dream of starting your own business will no longer be unfulfilled simply due to a lack of funds. The Government of India's Pradhan Mantri Mudra Yojana (PMMY) has emerged as a major hope for those looking to start a small business or expand their existing business. The biggest advantage of this scheme is that it doesn't require a highly educated ,nor it is mandatory to provide a bank gurantee.

The loan limit has now doubled

Previously, the maximum loan amount available under the Pradhan Mantri Mudra Yojana (PMMY) was ₹10 lakh. However, the government has now increased this limit to ₹20 lakh. This means that you can now easily start not only a small shop but also larger businesses like a service center or manufacturing unit. The government's goal is to empower every youth in the country to become job creators rather than job seekers.

The entire system is divided into four categories

Mudra plans are divided into four different categories as per your needs so that you can choose as per your convenience:

• Shishu Category: Loan up to Rs 50,000 for small works.
• Teen Category: Loan from Rs 50,000 to Rs 5 lakh for medium scale work.
• Young Category: Loans ranging from Rs 5 lakh to Rs 10 lakh for large-scale businesses.
• Tarun Plus Category: This is a new category in which a bigger loan of Rs 10 to 20 lakh is available.

Eligibility and required documents

If you're an Indian citizen and want to start a legally valid business, you're eligible for this scheme. This loan doesn't require a formal degree; you simply need to be over 18 years of age. The bank primarily considers your business idea and work experience.

To apply, you'll need some basic documents, such as your Aadhaar card, PAN card, proof of address, a photo, and a simple business plan. If you're already in business, providing relevant bills or bank statements can strengthen your file.

Application process and important advice

You can apply for a Mudra loan by directly visiting your nearest public or private bank branch. Alternatively, you can fill out the form through an online portal. The bank will verify your documents and, if found to be in order, your loan will be approved within a short time.

After receiving a loan, the most important thing is to use the money wisely and pay the installments on time. Invest the money for the purpose for which you borrowed it. Keeping a clean record and making timely payments will make it easier to obtain a larger loan from the bank in the future.