The Pradhan Mantri Mudra Yojana (PMMY) is a scheme that is inaugurated by the Prime Minister on 8th April 2015, to help by providing funds for generating income for Micro, Small, and Medium Enterprises and small-scale companies in India.
‘MUDRA’ stands for Micro Units Development and Refinance Agency. The main objective of this scheme is to provide funds to the enterprises. Moreover, a firm can avail funds up to Rs. 10 lakhs.
Under the Mudra loan scheme, credit is facilitated to MSME sectors. These funds are utilized for several purposes associated with business expansion.
|Categories||Maximum loan amount||Objective|
|SHISHU||Rs. 50,000||The applicants that are planning to start up a business at an early stage.|
|KISHOR||Rs. 5 Lakhs||Entrepreneurs who are running units & looking for additional funds to expand business.|
|TARUN||Rs. 10 Lakhs||It can be used by fully established businesses & funds can be utilized for business expansion.|
SHISHU under the Mudra scheme provides Rs. 50,000 to the business owner that is lying under the phase of business or wants to start a new business.
Required details: -
KISHOR under the MUDRA loan offer loan up to Rs. 5 lakhs to those enterprises who are searching for more assets to expand their activities.
Required details: -
Under the MUDRA loan scheme, TARUN provides up to Rs. 10 lakhs if the entrepreneur meets the qualifications criteria.
Required details: -
|Bank name||Interest rate||Processing fee|
|Bank of Baroda||8%||1%|
|Bank of India||8%||1%|
|Central Bank of India||8%||1%|
|Bank of Maharashtra||10%||1%|
|Union Bank of India||8%||1%|
|Indian Overseas Bank||10%||1%|
|Punjab National Bank||8%||1%|
|Punjab & Sind Bank||10%||1%|
|State Bank of India||8%||1%|
|United Bank of India||8%||1%|
Mudra loans can be obtained for several reasons that aid in generating income and creating employment. Listed below are some purposes for mudra loan: -
Activities that are covered under the PMMY scheme are listed below: -
Almost every bank and the financial institution provides loans under the Mudra scheme, listed below is the bank list that provides this scheme at an attractive rate.
|Allahabad Bank||Yes Bank|
|Axis Bank||IDBI Bank|
|Bank of India||Indian Bank|
|Bank of Baroda||Jammu & Kashmir Bank|
|Bank of Maharashtra||Karnataka Bank|
|Canara Bank||Kotak Mahindra Bank|
|Central Bank of India||Punjab & National Bank|
|Corporation Bank||State Bank of India|
|Dena Bank||Syndicate Bank|
|Federal Bank||Union Bank of India|
|HDFC Bank||United Bank of India|
|ICICI Bank||Tata Capital|
Eligibility criteria for mudra loan depend on various factors such as business or sales turnover, repayment history, creditworthiness, age of the individual, and total work experience.
The top factors that usually affect the eligibility criteria for PMMY loan scheme are listed below: -
Poor credit report – Your past financial behavior can decide your financial stability in the future. Moreover, if there were any due payments in the past, then you may lose the chance of getting a loan.
Bad cash flow – Bank wants to know the cash flow management of the company and whether you are maintaining it well or not, if it seems to be negative cash flow then the possibility of availing a loan become less.
Listed below are certain documents that are required for the application of a Mudra loan: -
Step 1: - You must visit the official website of PMMY to get a mudra yojana loan.
Step 2: - Click on the download button to fill in the application form. You will ask to enter details including background information of partner, proprietor, & director, business details, banking, future estimation, past performance, credit facilities, etc...
Step 3: - Carry all the necessary handy documents with you while filling in the application form, as per your requirements you can approach any lender or financial bodies that provide mudra loan.
Step 4: - Submit the application form with affix required documents.
Step 5: - Once the lender is satisfied with your profile, the loan shall be approved and disbursed to your given bank account details.
As per your wish you can also apply for a mudra loan offline if you are not comfortable with the online process, following are the processes that are to be followed to apply online:
Step 1: - You must visit preferred banks or NBFCs that are authorized under PMMY.
Step 2: - Ask a bank representative for a mudra loans application form & fill in the necessary details.
Step 3: - Review the checklist & list of documents. After that, start filling in the application form with required details.
Step 4: - Then, affix two passport-sized photographs & necessary documents.
Step 5: - After the bank reviews your application and gets sure with your profile. Within 48 hours the borrowed amount will be credited to your respective bank account.
You can approach financeseva to get a loan under Pradhan Mantri Mudra Yojana (PMMY) Scheme to compare the rates and avail the best deal.
What is a mudra loan?
It is a type of loan term loan where an individual or a group can get a loan for the purchase of inventory and expansion of a business.
What are the three categories of PMMY loans?
The PMMY loans are divided into three categories listed below: -
Which banks provide mudra loans?
Banks that provide such loans at affordable rates are: -
Who can take a loan under this scheme?
Any applicant or MSMEs that run a small business can apply for this loan.
What is the rate of interest applicable to the PMMY loan scheme?
The interest rate applicable in the PMMY scheme from @7.30 onwards.
What is the repayment tenure of the mudra loan?
The repayment schedule for a mudra loan is extended up to 60 months.
Is PAN Card necessary to avail such loan?
No, PAN Card is not essential for those who want to get a mudra loan, but you must fulfill other KYC documents required by the preferred lender.
Also read: - Pradhan Mantri Mudra Yojana Scheme for Women