Business Loan: Now the government is giving a loan of Rs 20 lakh for 7 years to start a business, the interest is also very low.. India-employmentnews  |  2025-06-30T16:15:02+08:00

Business Loan: Prime Minister Narendra Modi launched the Pradhan Mantri Mudra Yojana (PMMY) in 2015. Its goal is to empower non-corporate, non-agricultural small and micro-entrepreneurs. The scheme provides collateral-free micro-credit of up to Rs 20 lakh, helping them to start or grow their business.

Let us tell you that in October last year, the government increased the loan limit from Rs 10 lakh to Rs 20 lakh directly. The government had made a big increase in the loan limit to further the objective of the Mudra scheme.

The loan is available under 4 different categories in PMMY-

Under the Pradhan Mantri Mudra Yojana, banks provide loans in four categories - Shishu, Kishor, Tarun and Tarun Plus. A loan of up to Rs 50,000 is given in the Shishu category, a loan of Rs 50,000 to Rs 5,00,000 is given in the Kishor category. In the Tarun category, a loan of Rs 5 lakh to Rs 10 lakh is given.

In the Tarun Plus category, a loan of Rs 10 lakh to Rs 20 lakh is given. Here you have to keep in mind that under Tarun Plus, loans are given only to those entrepreneurs who had previously taken a loan under the Tarun category and paid it on time.

How much time is available to repay the loan, how much interest will be charged-

According to the information received from the SBI Bank Website, under the Pradhan Mantri Mudra Yojana (PMMY), a loan of up to Rs 5 lakh is given 5 years to repay, which includes a maximum moratorium period of 6 months. Whereas a loan of Rs 5 lakh to Rs 20 lakh is given 7 years to repay, which includes a maximum moratorium period of 12 months.

According to SBI (State Bank of India), an additional interest of 3.25 percent has to be paid along with EBLR for the loan given under the Mudra scheme. For more information related to the Mudra scheme, you can talk to your nearest bank branch.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.

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