How To Make Use Pradhan Mantri MUDRA Loan Yojana (PMMY)
Micro & Small Enterprises (MSEs) plays a vital role in developing economic growth of a country & India stands among them. Almost 40% GDP contributed by micro & small enterprises sector & ultimately create a huge number of job opportunities to new youngsters. Significantly, they are known as emerging key players of economic growth. Finance is an essential need of every business without a proper cash flow, it becomes restricted to manage things, wherein numerous finance Scheme introduced by Government of India & one such Scheme is Pradhan Mantri MUDRA Yojana.
What is Pradhan Mantri MUDRA Yojana?
The government of India initiated PMMY Murda Yojana Scheme through Mudra subsidiary SIDBI to support micro & small enterprises by providing financial assistance up to 10 lacs.
Key Features Pradhan Mantri MUDRA Yojana:-
- Under PMMY Scheme 3 varied categories sub-divided
- Applicants can avail Mudra loan up to 10 lacs
- Collateral-free loan facility is available
- Maximum tenure up to 60 months
- Nil processing fee
Also Read: Project loan for New business
Varied Types of Mudra Loan:
Under the PMMY Scheme 3 varied categories sub-divided has followed under: -
Shishu Loan:- Firstly, through Shishu PMMY Loan entrepreneurs can avail loan up to Rs.50,000 to finance their startup business.
Kishor Loan:- Secondly, Kishor Loan can be obtained to expand an existing business, under Kishor loan borrowers get loan up to 5 lacs.
Tarun Loan:- Thirdly, Under Pradhan Mantri Mudra Yojana –Tarun loan provides loan up to 10 lacs with 3-5 years of repayment period to repay loan & this type of facility can be used for business expansion purposes.
Which sector are eligible to get Mudra Loan?
Under PMMY Mudra loan following listed sectors are covered: -
- Food Sector:- Business engaged in food sector performing activities like food shop, food distribution, preserving food through cold storage can get mudra loan to set up new or expand their existing business.
- Transport Vehicle Sector:- Activities covered under transport vehicle sector include commercial vehicle agency, warehouse service, transport & logistics.
- Textile Sector:- Business engaged in textile sector performing activities like handloom, weaving, khadi work, processing & apparel manufacturing can get PMMY loan to set up new or expand their existing business.
- Traders & Shopkeepers:- Import & export trading unit along with other shopkeepers are eligible to get mudra loan.
Also Read:- Project Loan for Textile Industry in India
PMMY Mudra Loan Eligibility Criteria
PMMY Mudra Loan has certain eligibility criteria that need to be checked before application. Kindly through the following points:-
- Applicant must be a resident of India.
- Applicant minimum age should be above 18 years.
- Individuals/Private limited companies/sole proprietor firm/partnership firm or public limited companies.
- All micro & small units engaged in manufacturing & services sector.
- Loan requirement should not exceed more than 10 lacs.
- New & existing businesses both are eligible.
- Firms involved in farming activities are not eligible.
- SMEs owned by women entrepreneurs are also eligible.
Documents Required for PMMY Mudra Loan
Pradhan Mantri Mudra Yojana requires the following documents to be submitted at the time of loan application.
- Application form with attaching passport sized photographs
- Business plan along with project report
- Proof of special belonging categories like SC/ST/OBC & other minority communities.
- KYC documents- (Aadhar Card, PAN Card, Voter ID, Passport & Driving License).
- Company registration certificate & other required documents.
- Business address proof - (rent/lease agreement, electricity bill, bank statement.
How to apply for PMMY Mudra Loan Online?
Step 1: - Applicants have to choose their preferred bank enlisted under PMMY Scheme, then download the application form & fill with correct value.
Step 2: - Once, you fill the Pradhan Mantri Mudra Yojana application form. Make sure all the blanks are filled to avoid any kind of tension at last time.
Step 3: - Upload the filled application form along with relevant documents on the online web portal of respective bank.
Step 4: - After the submitted, check your mail on regular basis. As bank representative can contact you anytime for further formalities.
Step 5: - Bank representative will go through your application & evaluate certain factors, if your application seems good then only, they would process for loan sanction.
PMMY Mudra Loan FAQ
What is PMMY Mudra loan?
The Government of India initiated Mudra loan under this credit facility PMMY exists, it aims to facilitate bank loan to micro & small enterprises whether it’s a new or existing firm.
What is Mudra loan interest rate?
Generally, starting 8% onwards rate is charged but bank to bank Mudra loan interest rate get varied.
Who are eligible for PMMY Mudra loan?
Under this scheme only existing business borrowers are eligible along specified categories segment are funded.
Can a women entrepreneur apply for Mudra loan?
Yes, Women entrepreneur with an ideal concept of business can apply for Mudra loan & get upto 10 lacs to startup business.
How much loan amount offered under PMMY scheme?
PMMY scheme divided into 3 categories named Shishu, Kishor & Tarun accordingly respective maximum loan amount of 10 lacs is granted.
How can I apply for Mudra loan online?
To apply online, applicant have to select the optional bank that come under PMMY Scheme – visit their official website-download the application form & fill them to submit with required documents.
Is there any separate application form for Tarun loan?
Yes, if you are applying for Shishu loan or Kishor loan general application form is used but in case you are applying for Tarun loan require separate application form that can be accessible at bank.
How much time given to repay Mudra loan?
To repay loan banks give tenure period ranging from 3 years to 5 years. If you want to repay loan before selected period then certain charges are levied.
Also Read: How to get a business loan in India