Pradhan Mantri Mudra Yojana
Pradhan Mantri Mudra Yojana (PMMY), aims to be an integrated financial and services support provider, so as to create an inclusive, sustainable and value-based entrepreneurial culture and achieve economic, financial and social development in India.
The loans under MUDRA Yojana are granted for non-farm income-generating activities.
MUDRA Loans mainly fund the Non-Corporate Small Business Sector (NCSBS). Non-Corporate Small Business Segment consists of hundreds and thousands of small businesses like proprietorships, partnership firms, small manufacturing units, service sector units, shopkeepers, fruits/vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processing units and so on in rural and urban areas.
The most haunting challenge is lack of financial support in this sector, because there’s little access to formal sources of finance. That’s how important a role the Pradhan Mantri Mudra Yojana (PMMY) plays.
Highlights of Pradhan Mantri Mudra Yojana:
No processing fees
A 5 years repayment period
What Loan does MUDRA offer?
Schemes under MUDRA are ‘Shishu’ (infant), ‘Kishor’ (child) and ‘Tarun’ (adolescent) which signify the funding needs of the beneficiary.
Shishu: This covers loans up to Rs 50,000 provided with no collateral, @1% rate of interest/month, repayable over a period of 5 years.
Kishor: This covers loans above Rs 50,000 and up to Rs 5 Lakhs.
Tarun: Covers loans above Rs 5 Lakhs to Rs 10 Lakhs.
Where can you avail MUDRA Loans?
Regional Rural Banks (RRB)
Private Sector Banks
Micro Finance Institutions (MFI)
Non Banking Finance Companies (NBFC)
There are more than 27 Public Sector Banks, 17 Private Sector Banks, 27 Regional Rural banks and 25 Micro Finance Institutions as partners under MUDRA. To ensure smooth implementation and monitoring, 97 Nodal officers are identified at various Small Industries Development Bank of India (SIDBI) Regional offices, who are the first point of contact for MUDRA.
Any Indian Citizen with a business plan for a non-farm sector whose credit need is less than Rs 10 Lakh.
1. Self attested copy for Identity Proof:
Voter’s ID Card
Photo Id issued by a Government authority.
2. Proof of Residence:
Recent telephone bill
Property tax receipt
Voter’s ID Card
3. Two passport-size photographs
4. Quotation of machinery and equipments to be purchased
5. Proof of Identity of the Business:
Registration Certificates (RC)
6. Proof of category: SC, ST, OBC or Minority Category.