The progress of a nation depends on how well the businesses do. To empower small scale businesses that contribute considerably to the national economy, the government of India launched the flagship scheme known as the Pradhan Mantri Mudra Yojana or PMMY.
This scheme was launched on the 8th of April 2015. The main goal of this scheme is to offer affordable loans to non-corporate, non-farm micro and small enterprises. This is to basically aid them with primary needs so that they can earn larger margins of profits for their companies.
Benefits of the loan
There are key benefits that come with the loan, and they are as follows:
- Micro and small enterprises who are working towards income generation are basically the prime targets of the scheme.
- The borrowers are not required to provide any form of collateral or security in order to avail the PMMY loan amount
- There would be absolutely no processing charges for availing the loan amount
- The loans are provided for the funded and even the non-funded category. It would also induce a certain element of flexibility in the usage of those funds provided.
- The loans can be in the form of varied types: term loans, overdraft facility, letters of credit or even just a bank guarantee. This therefore caters to a wider array of needs of small businesses and aids them in their endeavours.
- The PMMY scheme does not prescribe a minimum amount of loan.
Small businesses now have a chance to soar the heights of success. With the government backing small businesses, every business idea now stands possible; now stands on the edge of reality.