MUDRA Loan or PMMY was launched by Governement of India on 8th April, 2015 for financing Indian small scale companies. Loans ranging between Rs.50,000/- to Rs.10 lacs is available under PMMY. Mudra Loans are offered by banks, NBFCs, MFIs etc.
MUDRA is a refinancing Financial Institution.Full form of MUDRA is Micro Units Development and Refinance Agency Ltd.
MUDRA does not directly give loans to the micro enterprise or Individuals. But MUDRA provides refinance support to the banks,RRBs, NBFCs, MFIs who have provided loan to micro businesses or individuals.
Pradhan Mantri Mudra Yojana provides loans upto Rs.10 lacs to non corporate, non farm small/micro enterprises.
PMMY SCHEME DETAILS
For loans under Pradhan Mantri Mudra Yojana, no collateral is required.
Eligibility
Mudra loan is offered for various purposes which includes income generation and employment creation in Manufacturing, Services, Retail and Agri allied activities.
Any Indian citizen who has plans of commencing business in non corporate non farm income generating activity such as manufacturing, processing, trading or service sector can apply for loan under PMMY.
Loan of upto 10 lacs is provided as support under PMMY.
Who are eligible to apply under PMMY?
- A shopkeeper
- Any individual who is involved in Agri allied activities such as poultry, fisheries, livestock units,
- A small manufacturer
- An artisan (for example carpenter, potter etc)A shopkeeper
- Any individual who is involved in Agri allied activities such as poultry, fisheries, livestock units,
- A small manufacturer
- An artisan (for example carpenter, potter etc)
Age criteria for Mudra loan
Individual applying for loan under PMMY should be between 18 – 65 years of Age.
Types of MUDRA Loan
Depending on the stage of development of an micro enterprise, MUDRA Loan is classified into three categories as follows:
- Shishu – Loans up to 50k.
- Kishor – Loans above 50k upto 5 lacs.
- Tarun – Loans above 5 lacs upto 10 lacs.
How to apply for MUDRA loan?
MUDRA loan can be availed offline through financial institutions such as banks etc or online by visiting the Udaymimitra portal (www.udyamimitra.in)
Online Application for MUDRA loan
- Visit the site : http://www.udyamimitra.in/
- click on the apply now on MUDRA Loan option.
- Then choose your category whether you are new entrepreneur or existing or self employed.
- Fill up details like Name, Email, Mobile no and generate otp.
- Verify otp and then a form will open on your screen.
- Fill all the personal and professional details carefully then click on submit.
Offline application for Mudra loan
Visit nearest branch of the bank where MUDRA loan is available.
Download the application form, fill it properly and after filling the form, submit it at the bank along with required documents.
Documents required for MUDRA loan
Following are the documents required for availing MUDRA loan either offline i.e through bank, NBFC, MFI etc or Online
List of documents required for Shishu Loan
1)Proof of identity – Self attested copy of Voter’s ID card/Driving Licence/PAN Card/Aadhaar
Card/Passport/Photo IDs issued by Govt. authority etc.
2)Proof of Residence – Recent telephone bill / electricity bill / property tax receipt (not older than 2 months) /Voter’s ID card / Aadhaar Card / Passport of Individual / Proprietor/Partners/Bank passbook or latest
account statement duly attested by Bank officials/Domicile certificate/certificate issued by Govt.
authority/Local panchayat/Municipality etc.
3) Applicant’s Recent Photograph (2 copies) not older than 6 months.
4)Quotation of Machinery/other items to be purchased
5)Name of supplier / details of machinery / price of machinery and/or items to be purchased.
6) Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration
certificates/other documents pertaining to the ownership, identity and address of business unit, if any
7) Proof of category like SC/ST/OBC/Minority etc.
NOTE:
1) No processing fee
2)No collateral
3)Repayment period of loan is extended up to 5 years.
4) Applicant should not be defaulter of any Bank/Financial institution.
List of documents required for Kishor and Tarun Loans :
1) Proof of identity – Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
2) Proof of Residence – Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
3) Proof of SC/ST/OBC/Minority.
4) Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration
certificates/other documents pertaining to the ownership, identity and address of business unit.
5) Applicant should not be defaulter in any Bank/Financial institution.
6) Statement of accounts (for the last six months), from the existing banker, if any.
7) Last two years balance sheets of the units along with income tax/sales tax return etc.
(Applicable for all cases from Rs.2 Lacs and above).
8) Projected balance sheets for one year in case of working capital limits and for the period of the
loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
9) Sales achieved during the current financial year up to the date of submission of application. 10) Project report (for the proposed project) containing details of technical & economic viability. 11) Memorandum and articles of association of the company/Partnership Deed of Partners etc.
12) In absence of third party guarantee, Asset & Liability statement from the borrower including
Directors& Partners may be sought to know the net-worth. 13) Photos (two copies) of Proprietor/ Partners/ Directors.
MUDRA loan interest rate
Interest rate on MUDRA loan differs from bank to bank depending on the customer profile and the business they are involved in. Th
There is no fixed interest rate on MUDRA loan but is decided by the particular lending institution.
It generally ranges between 11.75% to 26% per annum.
Which banks provide MUDRA loan?
As per RBI directive, following banks provide MUDRA loan:
- Bank of Maharshtra
- State Bank of India
- Bank of India
- Bank of Baroda
- Central Bank of INdia
- Union Bank of India
- Indian Bank
- Canara Bank
- Axis Bank
- Bajaj Finserv
- HDFC Bank
- IDBI Bank
- ICICI Bak
- IDFC First Bank
- Karnataka Bank
- Kotak Mahindra Bank
- Syndicate Bank
- Saraswat Bank
- Yes Bank etc.
MUDRA Card
MUDRA card is a type of debit card issued against the MUDRA loan account, for availing working capital part of the loan.
MUdra card can be used at any ATM/micro ATM and it can also be used for making payment at ‘point of sales’ machines.
With the help of Mudra card, the borrower can make multiple withdrawals and credits as per his needs so that he can manage the working capital limit in cost effective manner.
Through Mudra card,the transactions are digitized and a digital credit history of the borrower is created.
Benefits:
- Government gives the guarantee for Mudra loan, so if a borrower is unable to repay the loan amount, the responsibility is taken by the government.
- Women borrowers can avail the loan at discounted interest rates.
- Repayment period of the loan is upto seven years.
- No security or collateral is required to avail Mudra loan.