PMMY Loan: Get Funding For Both New & Existing Enterprises, Apply Online.

PMMY - Mudra Loan

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India to extend affordable credit to micro and small enterprises. The scheme was launched by the Hon’ble Prime Minister on April 18, 2015, for providing loans up to 10 lakhs for new enterprises. Under the Scheme loan up to 20 lakhs those entrepreneurs who have availed and successfully repaid previous loans under the Tarun category.

PMMY Benefits
  • Credit facilities to micro and small enterprises.
  • No security or collateral is required.
  • No processing charges.
  • For fund or non-fund based requirements.
  • Can be used for a variety of purposes.
  • No minimum load amount.
PMMY Features

There are three Mudra loans depending on the loan amount.

  1. Shishu: Loans sanctioned under the PMMY scheme up to Rs.50000/-.
  2. Kishore: Loans sanctioned under the PMMY scheme Rs.50,001 to up to Rs.5 lakhs.
  3. Tarun: Loans sanctioned under the PMMY scheme Rs. 500001 up to Rs.10 lakhs.
  • While there is no minimum loan amount under the Mudra loan scheme, the maximum loan amount that can be taken under the PMMY is Rs. 10 Lahs.
  • Borrowers don’t need to pay processing charges or offer need to pay processing charges or offer collateral if they avail of a Mudra loan.
  • As per the PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can include those engaged in allied agricultural activities, such as horticulture and fisheries.
PMMY Eligibility
  • All non-farm enterprises.
  • Under micro-enterprises and small enterprises segment.
  • Engaged in income-generating activities.
  • Engaged in manufacturing, trading and services.
  • Whose credit needs are up to Rs. 10 lakhs.
  • Now allied agriculture activities have also been included under the PMMY scheme w.e.f. 01/04/2016.
Documentation
  • Duly filled Mudra Loan application form.
  • Identity proof documents like Aadhar card/PAN/Driving License/Passport/Voter ID/Government-issued photo ID. (All applicants’ documents in case of joint loans).
  • Residence proof documents like the latest utility bill/aadhar card/Voter ID/Passports/Bank account statements. (All applicants’ documents in case of joint loans).
  • Business ID and Address proof documents (Udyog Aadhar/Licenses/Registration Certificates/Deed Copy, etc.).
  • Latest photographs of the applicants.
  • Proof of SC/ST/OBCminority, if applicable.
  • Proof of loan requirement, i.e., equipment quotations, vendor details, etc.
  • Any other document as per sanction terms.
Terms and Conditions
  • Term/Demand: Maximum up to 48 months with suitable moratorium subject to annual review.
  • Working Capital: For 12 months subject to annual review.
  • Maximum limit: Rs 10 lakhs.
  • Margin: As per bank guidelines.
  • Bureau Score Validation: Minimum bureau score cut off as per the Bank’s guidelines.
  • Processing Fee: Nill for all categories.
  • Security: Hypothetication of assets created by bank finance.
  • No collateral is required.
  • Insurance/Guarantee: Mudra loans are covered under CGTMSE coverage.
  • Pre-closure charge: Nil.
Activities Covered Under Mudra Loan

Mudra loans could be availed for the following.

  • Vehicle Loan: Commercial vehicle loan, Car loan, and Two-wheeler loan.
  • Business Installment Loan (BIL): Loan for working capital requirements, buying plant and machinery, renovating offices etc.
  • Business Loan Group Loans (BLG) and Rural Business Credit (RBC): We offer Drop line overdraft/Overdraft/Working capital loans.
  • Food Product Sector.
  • Communities, social, and personal service activities.
  • Business loans for shopkeepers and traders.
  • Textile products sector and activities.
  • Agriculture-related activities.
  • Equipment finance scheme for micro Units.
Achievements Under PPMY 2023-24
Unit Specification
Financial Year
  • 2023-24
No. of PPMY Loans Sanctioned
  • 66777013
Amount Sanctioned
  • Rs. 541012.86 Crore
Amount Disbursed
  • Rs. 532358.35 Crore

 

Also Read This: PMEGP Loan: Get a Loan with up to 35% Subsidy; Apply Online!

Conclusion

Mudra loans (PMMY) are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply through the UdyamiMitra portal.

Pradhan Mantri Mudra Yojana: Apply for Loan.

Under the aegis of PMMY, MUDRA has created four products namely-

  1. Shishu.
  2. Kishore.
  3. Tarun.
  4. Tarun Plus.

To signify the storage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation/growth.

Explore more on infocroft.com!

FAQs

Yes, you will have to produce your income tax returns (ITR) for the past two years if you are looking to apply for a Mudra Loan.

The maximum loan amount that can be availed from banks is up to Rs. 10 lakh.

No, your Cibil Score will not be taken into consideration if you are looking to apply for a Mudra Loan.

No, there are no subsidies under the Pradhan Mantri MUDRA Yojana.

2 thoughts on “PMMY Loan: Get Funding For Both New & Existing Enterprises, Apply Online.”

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