Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India to “Fund the Unfunded” by beginning such activities, to the formal financial system and increasing affordable credit to them. It allows a small amount to borrow from all Public Sector Banks like PSU Banks, Regional Rural Banks, and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-Banking Finance Companies (NBFC) for loans up to Rs 10 lakhs for non-farm income-generating projects. The scheme was begun on 8th April 2015 by the Hon’ble Prime Minister Narendra Modi.
Table Of Content:
- Pradhan Mantri Mudra Yojana
- Mudra Loan
- Pradhan Mantri Mudra Loan
- Mudra Loan Eligibility
- PM Mudra Yojana
- Pradhan Mantri Mudra Yojana Application Form
Micro Units Development and Refinance Agency Bank (or ‘MUDRA Bank) is a public division financial organization in India. It gives loans at low rates to micro-finance companies and non-banking financial companies which then give credit to MSMEs. It was originated by Prime Minister Narendra Modi on 8 April 2015.
Pradhan Mantri Mudra Loan
The MUDRA banks were set up following the Pradhan Mantri MUDRA Yojana Scheme. It will give its services to small entrepreneurs outside the service area of regular banks, by practicing last mile agents. Only 4% of these companies get finance from regular banks. The bank will also guarantee that its clients do not fall into debt and will lend responsibly.
The bank will have an opening capital of ₹200 billion and a credit guarantee fund of ₹30 billion. The bank will originally function as a non-banking financial company and a subsidiary of the Small Industries Development Bank of India (SIDBI). Advanced, it will be made into a separate company. However, it will improve Microfinance institutions.
Pradhan Mantri Mudra Yojana
The bank will analyze its clients into three categories and the maximum allowed loan amounts will be based on the category:
Types Of Mudra Loan
- Shishu (शिशु): Approved loans up to ₹50,000 (US$700)
- Kishor (किशोर): Approved loans up to ₹5 lakh (US$7,000)
- Tarun (तरुण): Approved loans up to ₹10 lakh (US$14,000)
Government has chosen to provide an additional fund of ₹1 trillion (US$14 billion) to the business and will be allocated as
- 40% to Shishu
- 35% to Kishor
- 25% to Tarun
Those qualified to borrow from MUDRA Bank are
- Small manufacturing unit
- Fruit and vegetable vendors
Pradhan Mantri Mudra Yojana Sectors Covered
To maximize coverage of recipients and tailor results to meet the demands of specific business activities, sector/activity focused schemes would be driven out. To start with, based on the higher concentration of businesses in certain activities/sectors, schemes are intended for:
- Land Transport Sector / Activity – Which will be transport units for purchase of transport vehicles for goods and personal transport such as auto rickshaw, small goods transport vehicle, etc.
- Community, Social & Personal Service Activities – Like saloons, beauty parlors, gymnasium, boutiques, tailoring shops, etc.
- Food Products Sector – Support would be possible for engaging activities such as papad making, achaar making, jam/jelly making, etc.
- Textile Products Sector / Activity – To assist with engagement projects such as handloom, power loom, chikan work, zari, and zardozi work, etc.
Mudra Loan Eligibility
To avail of the advantages of the Pradhan Mantri Mudra Yojana, the person must be a citizen of India. The loans are primarily for people having a marketing plan in a Non-Farming Sector with Income generating activities like the following:
- Service Sector
- Or any other fields whose credit requirement is less than ₹10 lakhs.
The Indian Citizen endeavoring MUDRA Loans supporting the PMMY Scheme will have to address either an MFI, Bank or NBFC to avail it.
PM Mudra Yojana
Borrowers, who want to avail support under Pradhan Mantri MUDRA Yojana (PMMY), can address the local branch of any of the financial institutions in their region – PSU Banks, Regional Rural Banks, and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-Banking Finance Companies (NBFC). Sanction of compensation shall be as per the eligibility criteria of respective lending institutions.
Documents For Pradhan Mantri Mudra Loan
- Proof of identity – Self-attested photocopy 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 / Aaadhar Card.
- Applicant’s current Photograph (2 copies)
- Selection of Machinery / other things to be purchased.
- Name of Supplier/details of machinery/price of machinery and/or items to be bought.
- Proof of Identity / Address of the Business Enterprise – Copies of applicable Licences of the business unit, if any.
- Proof of section like SC / ST / OBC / Minority etc.
Note: For all PMMY loans, the accompanying is to be noted.
- No processing fee
- No collateral
- Repayment period of the loan is increased up to 5 years
- Applicant should not be delinquent of any Bank / Financial Institution
Pradhan Mantri Mudra Yojana Application Form
Common Loan Application Form For Kishor And Tarun- Click Here
Application Form For Sishu- Click Here
Checklist For Sishu Application- Click Here