If you want to start a business but do not have the required money, then there is no need to worry, because the government runs a scheme under which you can get a loan up to ₹ 20 lakh. Earlier the loan limit under this scheme was ₹ 10 lakh.
**PM Mudra Yojana**
Under PM Mudra Yojana (PMMY), you can take a loan up to ₹20 lakh to start a business. To provide more benefits to the beneficiaries, doubling of loan limits under certain categories was announced in the Budget.
**Earlier the limit was ₹10 lakh**
Earlier, the limit for Mudra loan under Pradhan Mantri Mudra Yojana (PMMY) was ₹10 lakh. The notification issued in this regard shows that a new category named ‘Tarun Plus’ has been added to the scheme.
**Loans available in 4 categories**
The government provides loans under PM Mudra Yojana in four categories: Shishu, Kishore, Tarun and Tarun Plus. Shishu loan is available up to ₹ 50,000, followed by Kishore loan, in which up to ₹ 5 lakh is available.
**When can I get a loan up to ₹20 lakh?**
Tarun Loans range from ₹5 Lakh to ₹10 Lakh, while the last stage – Tarun Plus Loan – offers amounts ranging from ₹10 Lakh to ₹20 Lakh. It is worth noting that loans above ₹10 lakh (up to ₹20 lakh) are available to those applicants who have successfully repaid their previous loans taken under the Tarun category.
**interest rate**
The main feature of this government scheme is that no collateral or guarantee is required while applying for Shishu Loan. Apart from this, there is no processing charge. According to the SBI website, the interest rate is EBLR plus 3.25%, which usually ranges between 9% to 12%.
**Where can you apply?**
You can apply for a loan under the Mudra Scheme by visiting your nearest bank, or you can avail the facility of online application. For more information you can visit https://www.mudra.org.in/.