Top 10 tips pradhan mantri mudra yojana

Check if your business falls under the category of micro-units and meets the eligibility criteria set by the government. You can find the details on the official website of MUDRA

Understand your eligibility

PMMY offers three loan categories - Shishu (upto Rs.50,000), Kishore (Rs.50,000 - Rs.5 lakh), and Tarun (Rs.5 lakh - Rs.10 lakh).  Choose the category that best suits your funding needs.

Choose the right loan category

Prepare a solid business plan

A well-crafted business plan outlining your business idea, financial projections, and how you plan to use the loan funds will increase your chances of loan approval.

While credit scores are not mandatory for Mudra loans, maintaining a good credit history shows financial responsibility and can improve your chances of getting a loan at a competitive interest rate.

Maintain a good credit score

Approach multiple lenders

Don't restrict yourself to just one bank. Compare loan terms, interest rates, and processing fees offered by different lenders before finalizing one.

Gather the required documents

Keep all the necessary documents like ID proof, address proof, business registration proof, and financial statements handy to avoid delays in loan processing.

Seek professional help

If you are new to business or have difficulty preparing a business plan, consider seeking guidance from a business consultant or a chartered accountant.

Use the loan for business purposes only

PMMY loans are meant to support businesses.  Use the loan funds judiciously for business growth and avoid using them for personal expenses.

Repay your loan on time

Timely repayment of your loan builds a positive credit history and improves your chances of securing future loans.– 

Explore government schemes

Several government schemes offer additional benefits to micro-units. Research and explore if there are any schemes that can help you along with the Mudra loan.