Pradhan Mantri Mudra Yojana: Pradhan Mantri Mudra Yojana or PMMY is a scheme launched by the Narendra Modi government aimed at facilitating micro-enterprises with loans up to ₹10 lakh. The scheme targets micro enterprises engaged in the non-farm sector including manufacturing, trading or service sectors. The scheme also covers agriculture-related activities, such as poultry, dairy, beekeeping, etc. Under the scheme, the government provides loans through its member lenders or banks.
Millions of people who are running small manufacturing units, service sector units, shopkeepers, truck operators, repair shops, fruits or vegetable vendors, machine operators, small industries, artisans, food processors etc. will benefit from the scheme.
Who provides loans under Pradhan Mantri Mudra Yojana?
Eligible Member Lending Institutions (MLIs) include Public Sector Banks, Private Sector Banks, State-operated cooperative banks, Rural banks from the regional sector, Micro Finance Institutions (MFI), Non-Banking Finance Company (NBFC), Small Finance Banks (SFBs), Other financial intermediary approved by Mudra Ltd. as member financial institutions provide financial assistance to manufacturers under the scheme.
Also, no agents or middlemen have been engaged for availing Mudra Loans, hence, one should be alert about fraudsters.
Mudra Loan Benefits
The government provides Mudra Loan under three categories — Shishu, Kishore, and Tarun — to the beneficiaries.
| Shishu | Loan up to ₹50,000 |
| Kishore | Loans above ₹50,000 and up to ₹5 lakh |
| Tarun | Loans above ₹5 lakh and up to ₹10 lakh |
Mudra Loan Interest Rates
There is no fixed interest rate for the scheme. The lending members declare interest rates for the scheme from time to time as per the Reserve Bank of India (RBI) guidelines. Besides, banks may also consider charging upfront free as per their internal guidelines.
Mudra Loan Eligibility
Eligible borrowers under the scheme include Individuals, Proprietary concerns, Partnership firms, Private Ltd. Companies, Public Companies, and Any other legal forms.
Before applying for the loan interested people should note that the applicant should not be a defaulter to any bank or financial institution and should have a good CIBIL score; the individual applicant should have the necessary skills/experience/ knowledge to undertake the proposed activity. Also, educational qualifications will be needed based on the nature of the proposed activity and its requirements.
How to apply for Mudra Loan?
There is an online application process for the Mudra loan, for which the candidate should first register himself with the government portal. For this, follow the given steps:
First, go to PM MUDRA official website www.mudra.org.in and select the Udyamimitra portal.
Second, click on Mudra loan “Apply Now” option.
Third, select the option as per your eligibility — New entrepreneur/ Existing Entrepreneur/Self-employed professional.
Thereafter, fill in the required information like the name of the applicant, email and mobile number and generate the OTP.
After generating the OTP your registration will be completed.
After successful registration one will have to fill out the application form, for that follow the given steps:
First, fill in your personal and professional details as required.
Thereafter, select hand-holding agencies if any help is required for preparing project proposals etc., if not needed then click on “Loan Application Center” and apply.
After that, you should select the category of loan under which the amount is desired.
Now, provide your business details like name, activity, etc. and select your industry type like manufacturing, service, trading or any other in which your business fits.
Provide other required information like owner details, running loans, any loan for which you have applied, future estimates and preferred lender.
Attach all necessary documents like ID proof, address proof, applicant photo, applicant signature, proof of identity/ address of business enterprise, etc.
After filling in the detail submit your application.
Now, an application number will be generated, keep it safe for future reference.
Required Documents
For Shishu Loan:
A self-attested copy of ID proof like a voter’s ID card/driving licence/PAN card/Aadhaar card/passport/photo ID issued by the government authority etc.
Residence proof like recent electricity bill/property tax receipt (not older than 2 months) / telephone bill / Voter’s ID card / Aadhar card/passport/bank passbook or latest account statement/domicile certificate/certificate issued by the government authority/panchayat/municipality etc.
2 coloured passport-size photographs not older than 6 months.
Quotation of items to be purchased like machinery etc.
Name of supplier, details and price of items to be purchased.
Business proofs like copies of relevant licences/registration certificates / other documents pertaining to the ownership, and address proof of the business.
For Kishore and Tarun Loan:
Self-attested copy of ID proof like Voter ID/driving license / PAN card / Aadhaar card or Passport.
Residence proof like recent electricity bill/property tax receipt (not older than 2 months) / telephone bill / Voter’s ID card / Aadhar card/passport of Proprietor/Partners/Directors.
2 coloured passport size photographs not older than 6 months.
Business proofs like copies of relevant licences/registration certificates / other documents pertaining to the ownership, and address proof of the business.
Last six months’ bank statement.
Last two years’ balance sheets of business along with income tax/sales tax return etc. (for loans from ₹2 lakh and above)
Projected balance sheets for the coming year.
Sales achieved during the current fiscal year up to the date of submission of application.
Project report of the proposed project containing details of technical & economic viability.
Details of current partnerships.
If a third-party guarantee is not available then the applicant must provide an Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net worth.