about Pradhan Mantri Mudra Yojana
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by the Government of India in April 2015. It is aimed at providing financial assistance to micro and small enterprises (MSEs) in the country, particularly those belonging to the unorganized and informal sectors. The scheme facilitates micro credit/Loan up to Rs. 10 lakh to income generating micro enterprises engaged in the non farm sector in manufacturing, processing, trading or service sector. MUDRA supports Financial Intermediaries to extend loans to the non-corporate, non-farm sector income generating activities of micro and small entities. These Micro and small entities comprises of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban
Objective:
The primary objective of PMMY is to support the growth and development of micro-enterprises and to provide financial inclusion to the underserved and marginalized sections of society. It aims to encourage entrepreneurship and job creation by providing access to affordable credit.
Loan process: banks and lending institutions
- Public Sector Banks
- Private Sector Banks
- State operated cooperative banks
- Rural banks from regional sector
- Institutions offering micro finance
- Financial companies other than banks
Interest rate :
The interest rates on Mudra loans provided under the Pradhan Mantri Mudra Yojana (PMMY) are determined by the lending institutions that disburse the loans. These institutions include banks, non-banking financial companies (NBFCs), microfinance institutions, and cooperative societies. The interest rates can vary from one institution to another and may also depend on factors such as the borrower’s creditworthiness and the prevailing market rates.
Generally, the interest rates on Mudra loans are competitive and affordable, as the scheme aims to provide access to credit for micro and small enterprises. The rates offered by different institutions may range from the base lending rate plus a small spread to a rate determined based on the borrower’s risk profile and the nature of the business.
To obtain accurate and up-to-date information on the interest rates for Mudra loans, it is recommended to contact the specific lending institution or visit their official website. They will be able to provide detailed information regarding their interest rates, loan terms, and other relevant details pertaining to Mudra loans under PMMY.
Interest rate :
Under the Pradhan Mantri Mudra Yojana (PMMY), there are no upfront fees or processing charges levied by the government on Mudra loans. The scheme aims to provide affordable credit to micro and small enterprises, and therefore, the government has waived off any upfront fees or charges associated with the loan application and processing.
However, it’s important to note that the lending institutions, such as banks, microfinance institutions, and non-banking financial companies (NBFCs), may have their own policies regarding processing charges or other fees. These charges can vary from one institution to another and depend on factors like the loan amount, the borrower’s profile, and the institution’s internal policies.
When applying for a Mudra loan, it is advisable to inquire about any processing charges or fees directly from the specific lending institution where you plan to apply. They will be able to provide accurate information regarding any charges or fees associated with the loan application and processing.
benefits :
Pradhan Mantri Mudra Yojana (PMMY) and the Mudra loans provided under it offer several benefits to micro and small enterprises. Here are some of the key benefits:
- Shishu: Covering loans up to Rs. 50,000/-
- Kishor: Covering loans from Rs. 50,001 to Rs. 5,00,000/-
- Tarun: Covering loans from Rs. 5,00,001 to Rs. 10,00,000/-
Sources And References :
Eligibility :
Eligible borrowers
- Individuals
- Proprietary concern.
- Partnership Firm.
- Private Ltd. Company.
- Public Company.
- Any other legal forms.
The applicant should not be defaulter to any bank or financial institution and should have a satisfactory credit track record.
Eligible borrowers
- Individuals
- Proprietary concern.
- Partnership Firm.
- Private Ltd. Company.
- Public Company.
- Any other legal forms.
The applicant should not be defaulter to any bank or financial institution and should have a satisfactory credit track record.
Documents Required :
For Sishu Loan
- Proof of identity – Self attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aadhaar Card / Passport / Photo Ids issued by Govt. authority etc.
- Proof of Residence : Recent telephone bill / electricity bill / property tax receipt (not older than 2 months) / Voter’s ID Card / Aadhar Card / Passport of Individual / Proprietor / Partners Bank passbook or latest account statement duly attested by Bank Officials / Domicile Certificate / Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
- Applicant’s recent Photograph (2 copies) not older than 6 months.
- Quotation of Machinery / other items to be purchased.
- Name of Supplier / details of machinery / price of machinery and / or items to be purchased.
- Proof of Identity / Address of the Business Enterprise – Copies of relevant Licences / Registration Certificates / Other Documents pertaining to the ownership, identity of address of business unit, if any
- Proof of category like SC / ST / OBC / Minority etc.
For Kishore and Tarun Loan
- Proof of identity – Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
- 2) Proof of Residence – Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
- Proof of SC/ST/OBC/Minority.
- Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
- Applicant should not be defaulter in any Bank/Financial institution.
- Statement of accounts (for the last six months), from the existing banker, if any.
- Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
- Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
- Sales achieved during the current financial year up to the date of submission of application.
- Project report (for the proposed project) containing details of technical & economic viability.
- Memorandum and articles of association of the company/Partnership Deed of Partners etc.
- In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.
FAQ : Frequently Asked Questions
Mudra loan refers to the financial assistance provided under the Pradhan Mantri Mudra Yojana (PMMY), a scheme launched by the Government of India in 2015. Mudra stands for Micro Units Development and Refinance Agency.
The objective of Mudra loans is to support micro and small enterprises (MSEs) in India by providing them access to formal credit channels. These loans are specifically targeted at businesses in the unorganized and informal sectors, such as small shopkeepers, fruit/vegetable vendors, artisans, small-scale industries, and individuals engaged in similar income-generating activities.
Yes, MUDRA loans can be availed for the purchase of CNG tempo/taxi vehicles. Pradhan Mantri Mudra Yojana (PMMY) aims to provide financial assistance to micro and small enterprises, including those engaged in the transport sector. The purchase of CNG tempo or taxi vehicles can be considered as part of the business expansion or establishment for income-generating activities.
To avail a Mudra loan for the purchase of CNG tempo/taxi, you would need to meet the eligibility criteria set by the lending institution.
Visit the lending institution: Visit the branch or office of the chosen lending institution to inquire about the Mudra loan application process. You can also check their official website for information on applying for a Mudra loan.
read our full blog it is reffer all process for mudra loan. It’s important to note that the specific process and requirements for Mudra loan applications may vary among different lending institutions. It is recommended to contact the chosen institution directly or visit their official website for detailed and up-to-date information regarding the application process, documentation, and any specific criteria they may have for Mudra loan applications.
To get a Mudra loan, you can follow these steps:
Identify the lending institution: Choose a financial institution that offers Mudra loans. This can be a bank, microfinance institution, regional rural bank, or non-banking financial company (NBFC) participating in the Mudra loan scheme. You can check the list of eligible institutions on the official website of the Pradhan Mantri Mudra Yojana.
To fill out a Mudra loan application form, follow these steps:
Obtain the application form: Collect the Mudra loan application form from the lending institution you have chosen to apply to. You can typically obtain the form from the branch office or download it from the official website of the institution, if available.
Read the instructions: Carefully read the instructions provided with the application form. Understand the requirements, guidelines, and any specific instructions mentioned.
Personal information: Fill in your personal details accurately in the designated sections of the application form. This includes your name, address, contact information, date of birth, and other relevant information as requested.
Business details: Provide information about your business, such as the type of business, nature of the business, business address, years in operation, and other related details. If your business is registered, provide the registration number and other registration details.
Loan category and amount: Select the appropriate loan category (Shishu, Kishor, or Tarun) based on your funding requirements. Indicate the desired loan amount you are applying for.
Loan purpose: Clearly mention the purpose for which you are seeking the Mudra loan. This can include working capital, purchasing equipment or machinery, expanding the business, or any other specific purpose relevant to your business needs.
Supporting documents: Ensure that you attach all the required supporting documents as mentioned in the application form. This may include identity proof, address proof, business registration documents, bank statements, income tax returns, and any other documents specified by the lending institution.
Business plan: If required, include a detailed business plan outlining your business model, products or services offered, target market, marketing strategies, financial projections, and how the Mudra loan will be utilized for business growth.
Declaration and signature: Read the declaration statement provided in the application form carefully. Sign the application form in the designated space, indicating your consent and agreement to the terms and conditions.
Review and submission: Before submitting the application form, review all the information provided to ensure its accuracy and completeness. Make sure all the required fields are filled in, and all the supporting documents are attached.
Submit the application: Submit the completed application form along with the supporting documents to the lending institution as per their instructions. Retain a copy of the application form and supporting documents for your reference.
Remember, the specific format and requirements of the Mudra loan application form may vary slightly among different lending institutions. It’s recommended to carefully follow the instructions provided by the institution and seek clarification if needed.
Visit the official website: Go to the official website of the lending institution from which you want to obtain the Mudra loan. Check if they offer an online application facility for Mudra loans.