Pradhan Mantri MUDRA Yojana (PMMY)

What is Pradhan Mantri Mudra Yojna?

Pradhan Mantri MUDRA Yojana (PMMY) was formally launched on April 2015.  MUDRA is a short form of Micro Units Development & Refinance Agency Ltd. (MUDRA). The purpose of this
Yojana is to provide loans to The non-corporate small business sector. Pradhan Mantri Mr.
Narendra Modi said that our government wants a job creator and not a job seeker. This
Pradhan Mantri Mudra Yojana has Open many doors for the youth. Under this scheme,
everyone from the non-farm income generation sector could seek a loan of up to 10 lakh. This
Yojana has mainly aimed to financial support The non-corporate small business sector like
candle maker, street vendor, furniture maker and etc.

MUDRA Yojna BENEFITS

• The loan provided under this Yojana has a very low-interest rate on it
• One can take a loan from Mudra Yojana without any processing fees
• This Yojana is mainly focused on the non-corporate small business sector
• The working capital loan will be given through a Mudra card
• Collateral is not required I avail loan

Who is ELIGIBLE?

• The applicant should be an Indian citizen
• The loan will be only provided for small scale business from a rural area
• The loan amount should be 10 lakhs or less than 10 lacks
• The age should be above 18
• There should be a business plan to show
• The business plan must contain the structure, investment plan, nature of the product,
  marketing and future result as well

TYPE OF LOAN PROVIDED

In this Pradhan Mantri mudra Yojna, there are three categories in which the amount of loan is
divided they are

• Shishu: loans up to Rs.50,000
• Kishore: loans above Rs.50,000 and up to Rs.5,00,000
• Tarun: loans above Rs.5,00,000 and up to Rs.10,00,000

The category of loan has been named Shishu, Kishore, and Tarun to identify the stage of
growth, development, and funding needs to the beneficiary micro unit.

SECTOR COVERED UNDER PRADHAN MANTRI MUDRA YOJNA

Pradhan Mantri Mudra Yojana has targeted on a very few selected sectors that are

• Transport
• Textile product
• Food product
• social, personal, and community

INTEREST RATE ON LOAN TAKEN UNDER PRADHAN

• If the loan amount is up to rupees 50000 which comes under Shishu then the interest rate
  would be charged around 10% to 12%
• If the loan amount is between rupees 50000 to 5 lacs which comes under Kishore then the
  interest rate would be charged around 14% to 17%
• If the loan amount is between rupees 5 lacs to 10 lacs which comes under Tarun then the
  interest rate would be charged around 16% and varies from bank to bank.

DOCUMENT REQUIRED

• Online/offline filled application form.
• Address proof.
• BIL application form.
• Photo identification.
• Bank statement of 12 months.
• INCOME tax return of last 2 years.
• Ownership proof of residence/office.
• Business vintage proof.

HOW TO GET MUDRA LOAN

Here are the following ways through which one can get a Mudra loan.

• Identify a bank near to you offering a Mudra loan.
• Visit the bank personally along with your business plan.
• Fill the Mudra form.
• Submit all the necessary documents to the bank.
• The bank will review the business plan and according to your business plan the bank will
  give you a loan.