New Offer Pradhan Mantri Mudra Yojana (PMMY)

 

Pradhan Mantri Mudra Yojana (PMMY)

Overview of Pradhan Mantri Mudra Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India, aimed at providing micro credit/loan up to Rs. 10 lakhs to income-generating micro enterprises in the non-farm sector. These include manufacturing, trading, and service sectors, as well as activities allied to agriculture like poultry, dairy, and beekeeping.

Eligible Borrowers

Under the PMMY scheme, loans can be availed by the following types of entities:

• Individuals
• Proprietary concerns
• Partnership firms
• Private Limited Companies
• Public Companies
• Any other legal forms

Note: Applicants should not be defaulters to any bank or financial institution and should possess a satisfactory credit track record. They may also need to have the necessary skills, experience, or knowledge for the proposed activity.

Loan Categories

The scheme is categorized into three types based on the stage of growth and funding needs of the micro unit/entrepreneur:

• Shishu: Loans up to Rs. 50,000/-
• Kishore: Loans above Rs. 50,000/- and up to Rs. 5 lakhs
• Tarun: Loans above Rs. 5 lakhs and up to Rs. 10 lakhs

Interest Rates and Charges

Interest Rates

The interest rates for Mudra loans are determined by the Member Lending Institutions (MLIs) based on guidelines from the Reserve Bank of India (RBI).

Upfront Fee/Processing Charges

Banks may charge an upfront fee as per their internal guidelines. However, for Shishu loans (up to Rs. 50,000/-), the upfront fee is waived by most banks.

Note: There are no agents or middlemen engaged by MUDRA for availing Mudra Loans. Borrowers are advised to avoid any agents/facilitators posing as representatives of MUDRA/PMMY.

How to Apply for a Mudra Loan

Step-by-Step Application Process

To apply for a Mudra loan, follow these steps:

1. Visit the official PM MUDRA website and select the Udyamimitra portal.
2. Click on "Apply Now" for Mudra loans.
3. Select your category: New Entrepreneur, Existing Entrepreneur, or Self-employed Professional.
4. Fill in the required details like name, email, and mobile number to generate an OTP.
5. After successful registration, fill in your personal and professional details.
6. Select hand-holding agencies if needed or directly proceed to the "Loan Application Center".
7. Select the loan category: Shishu, Kishore, or Tarun.
8. Fill in business information like business name, activity, and industry type (Manufacturing, Service, Trading, or allied agriculture activities).
9. Provide additional details such as owner details, existing banking/credit facilities, proposed credit facilities, future estimates, and preferred lender.
10. Attach all required documents (ID proof, address proof, photograph, signature, business enterprise proof).
11. Submit the application and note the generated application number for future reference.

Required Documents

For Shishu Loans

• Proof of Identity: Voter ID, Driving License, PAN Card, Aadhaar Card, Passport, etc.
• Proof of Residence: Recent telephone bill, electricity bill, property tax receipt, Voter ID, Aadhaar Card, Passport, etc.
• Recent photograph (not older than 6 months).
• Quotation for machinery or items to be purchased.
• Proof of business identity/address: Relevant licenses, registration certificates, etc.

For Kishore and Tarun Loans

• Proof of Identity: Voter ID, Driving License, PAN Card, Aadhaar Card, Passport, etc.
• Proof of Residence: Recent telephone bill, electricity bill, property tax receipt, Voter ID, Aadhaar Card, Passport, etc.
• Recent photograph (not older than 6 months).
• Proof of business identity/address: Relevant licenses, registration certificates, etc.
• Statement of accounts for the last six months.
• Last two years' balance sheets, income tax/sales tax returns (for loans above Rs. 2 lakhs).
• Projected balance sheets for one year (for working capital limits) or for the loan period (for term loans).
• Sales details for the current financial year up to the application submission date.
• Project report detailing the technical and economic viability.
• Memorandum and Articles of Association, Partnership Deed, etc.
• Asset & Liability statement in the absence of third-party guarantee.

Conclusion

The Pradhan Mantri Mudra Yojana (PMMY) is a significant initiative aimed at empowering micro enterprises and fostering entrepreneurship in India. By providing accessible financial assistance, the scheme helps small businesses grow and thrive, contributing to the overall economic development of the country.

Additional Resources

• Success Stories 1
• Success Stories 2
• Success Stories 3
• Frequently Asked Questions