Startups have exploded in popularity over the last decade. In India alone, almost 1300 new firms were launched last year. India has the world’s third-largest startup ecosystem. This, of course, has a lot to do with a young population having access to many more resources online and offline than were available a couple of decades ago. But how does one go about acquiring enough capital to run a startup successfully? One way is to avail a loan. Startups in India are finding it easier to obtain loans from a variety of sources such as PM e-Mudra Loan.

PM e-Mudra Loan

The administration introduced the Pradhan Mantri Mudra Yojana in 2015, recognising the potential of Indian companies. PMMY works with an NBFC called MUDRA, or Micro Units Development & Refinance Agency, to provide loans to small enterprises.

How do I get a PM e-Mudra loan for a startup?

The official government website, as well as the official websites of sponsoring banks, NBFCs, and MFIs, have thorough information on how to get a PM e-Mudra loan for your firm.

Start-up category

Before you begin any portion of the procedure, you must first determine which category your company belongs to. This is dependent on which category’s criteria correspond to your PM e-Mudra loan needs.

Mudra yojana source

PM e-Mudra loans can be obtained in a variety of methods, including through banks, NBFCs, MFIs, and internet applications. You’ll need to look into interest rates before deciding which option is ideal for you.

Documentation

To have your loan approved, you’ll need a specific collection of documentation. Typically, the list will comprise:

1. Proofs of your identification
2. Your prior loan history
3. Credibility documents
4. A firm business strategy
5. Balance sheets of a company
6. Future Growth Prospects

What Types of Businesses Can Benefit from a PM e-Mudra loan for a Start-up

• Vehicles for transportation, especially two-wheelers, are being purchased.
• Beauty salons, gyms, tailoring shops, boutiques, repair shops, and medicine shops are examples of community, personal, and social service activities.
• Food-related businesses include papad-making, jam-making, jelly-making, sweet shops, food stalls, catering, cold-chain vehicles, ice cream-making, bread-making, biscuit-making, bun-making, and so on.
• Powerloom, handloom, khadi, chikan work, zardozi, zari, traditional embroidery, traditional printing, dyeing, hand work, and garment design are examples of textile operations.
• Shopkeepers and traders can apply for business financing.
• Micro-enterprise equipment financing
• Agriculture-related activities such as pisciculture, apiculture, poultry, grading, livestock rearing, aggregation, sorting, agro industries, agri-clinics, fisheries, food processing, agribusiness centres, and ancillary services that give a livelihood or produce money.

The Above list comes under Mudra offerings, Startups and small businesses can benefit themselves through Pradhan Mantri Mudra Yojana for the various purposes as mentioned above.