Mudra scheme: Shishu loan becomes 2% cheaper, 9.37 crore small traders big relief
Under the Pradhan Mantri Mudra Yojana, the Union Cabinet has approved the decision of a 2 percent rebate on the interest to the child loan borrowers.
Cabinet Decisions: Under the Pradhan Mantri Mudra Yojana, the Union Cabinet has approved the decision of a 2% rebate on the interest to the child loan takers. After a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday, Union Minister Prakash Javadekar gave this information. He informed that under the Mudra Scheme from June 1, 2020, to May 31, 2021, Shishu loan customers will get the benefit of a 2 percent discount on interest. This will benefit 9.37 crore people.
The government provides loans at low rates to start its business under Pradhan Mantri Mudra Yojana. In this scheme, loans are given in 3 categories: Shishu, Kishore, and Tarun. Under the Mudra scheme, loans ranging from 50 thousand to 10 lakh rupees are available. Loans up to Rs 50,000 are available under Shishu Loan. At the same time, loans ranging from 50 thousand to 5 lakh rupees are given under a Kishore loan and 5 lakh to 10 lakh rupees under Tarun loan.
Where do you get a loan?
Any citizen of the country who wants to start his business can apply under the scheme. All government banks in the country have been authorized by the government for this. Also in the private bank category are Axis Bank, HDFC Bank, ICICI Bank, City Union Bank, DCB Bank, Federal Bank, IndusInd Bank, Jammu & Kashmir Bank, Karnataka Bank, Karur Vysya Bank, Kotak Mahindra, Nainital Bank, South Indian Bank and Yes Bank and IDFC Bank also provide this loan. Mudra loans can also be taken from rural banks, cooperative banks, non-banking finance companies, and microfinance companies.
How will I get a loan?
For the loan under the Mudra scheme, you have to apply to the government or bank branch. If you want to start your own business, then you will have to provide the ownership or rental documents, work-related information, Aadhaar, PAN number, and many other documents. The bank manager approves the loan after verification.