Mudra Scheme | Mudra Bank Loan Scheme | Mudra Loan Procedure | Mudra Loan Helpline – Apply Online for Loan Under Pradhan Mantri Mudra Yojana, PMMY
Small business units require proper financial support to grow. Indian Government understands this and that is the reason why the Government has come up with Pradhan Mantri Mudra Yojana. This scheme will provide financial assistance to small businessmen who want to grow their business. The financial support will be given via loan. In this article, we will explain everything related to Mudra Loan. All the questions like – What is Mudra Loan Scheme ? How to Apply for Mudra Loan ? What is the eligibility ? etc. will be answered here.
Pradhan Mantri Mudra Yojana (PMMY)
There are numerous small businessmen in the country who have potential, who have ideas but they lack financial support. In order to help such small business units, the Indian Government has come forward. With the help of Mudra Bank, our PM has launched a scheme called Mudra Yojana. Some call it Mudra Bank Yojana while others also refer to it as Mudra Loan Yojana. It doesn’t really matter by what name you know it. Under this scheme, Loans will be given to eligible applicants.
To run smoothly, all businesses should be financially strong. Established businessmen manage all the financial issues by themselves. However, startups or entrepreneurs need help. If the help comes from the government, that is a good thing. Indian Government has come up with a Loan scheme that has been named as Pradhan Mantri Mudra Yojana (PMMY). It is also being known as Mudra Loan
Knowing about the Mudra Loan process is important if you are interested. Other important factors include Type of Loans, Interest rates being offered and How to Apply. Well, this particular article addresses the same issues and helps the people in finding out the complete information regarding the Mudra Loan. We have attached the official documents also, you are advised to take a look at them.
This Article of Pradhan Mantri Mudra Bank Loan Yojana will be a like a Handbook for all those who are seeking for details. After reading the giving information you will come to know all about the Mudra Bank Scheme. Let’s get started and find everything about the scheme.
Mudra Bank Loan Scheme – Details | Process
There are many small organizations, companies and start-ups, Entrepreneurs in India. All these are collectively known as Micro Units. It has been observed that these Micro Units lack Financial Support. If Financial support is given they can grow and be much better than they are currently.
MUDRA, Full form “Micro-units Development and Refinance Agency Ltd.” is an institution that has been set up by the Indian Government in the leadership of PM Sh. Narendra Modi. MUDRA Bank has been set up with only one goal in mind – Fulfilling all the Funding needs of Non-Corporate Small Businesses.
Responsibilities of MUDRA Bank –
- Preparing and Launching the Policy Guidelines
- Registration and Regulation of MFI Entities.
Note – MFI Stands for Micro Finance Institution
- Running a Credit Guarantee Scheme
- Creating a Good Architecture for serving Micro business by Providing them Loan (Financial Assistance)
Pradhan Mantri Mudra Yojana – Mudra Bank Loan Scheme 2019
A special scheme has been launched and named as Pradhan Mantri Mudra Yojana (PMMY). All the required responsibilities and functioning of the Mudra Bank will be done under this scheme.
The big question that now arises in the mind of people is that What is the eligibility criteria to be part of Mudra Bank Loan Scheme and What is the procedure of Loan Application. Other important things are the interest rate & Application forms. But before going to that it is extremely important to Know the Category of your Business
Mudra Loan Scheme – Shishu, Kishor & Tarun Loan Categories
Micro-units or small business had to be categorized to signify the growth stage, Development and Funding requirements. Three categories were created for this purpose Namely “Shishu(Child Category)”, “Kishor Category” and “Tarun Category”.
To find out in which category your business falls, here is the explanation of each category –
Shishu Loan– As the name suggests, this category is for the Startups. All those businesses that have been just started and looking for Loan will fall in this category. A loan Cover of Rs. 50,000 will be given to all micro units falling in this Category. Interest Rate for Shishu Category is in the range of 10 to 12 %
Kishor Loan – This one is for those who have started their business but it has been established yet. A loan cover from Rs. 50,000 to 5 Lakhs will be given to units falling into this category. The interest rate in Kishor category is in the range 14 to 17% percent
Tarun Loan – All small business which has been set up and established will fall into this category. There may be some financial requirements for the betterment of the business. That’s why all small business or units falling into this category will be eligible for a Loan Cover of up to Rs. 10 Lakh. The interest rate in the Tarun category starts from 16 %
Required Documents for MUDRA Bank Loan Scheme
- Self Attested Identity Proof
- Self Attested Address Proof
- Passport Size Photographs
- In case you have purchased machinery or item, you have to provide Supplier’s Name, Machinery Details and Machinery Price
- You company Address and ID Proof
- Business Registration Certificate etc.
Eligibility Criteria for Participating Banks and Financial Companies –
Scheduled Commercial Banks –
All scheduled commercial Banks in the public and private sector with 3 years of continuous profit track record, net NPAs not exceeding 3%, minimum net worth of Rs.100 cr. and not less than 9% CRAR is eligible to Lend Loan
Regional Rural Banks –
All restructured RRBs having net NPA within 3% ( relaxable in deserving cases), having profitable operations and not carrying any accumulated losses and CRAR >9% are eligible under Pradhan Mantri Mudra Scheme.
Apply Online for Mudra Bank Loan Scheme(PMMY) – Application Form Download pdf 2019
Here is the step by step information regarding applying to the Mudra Bank Loan Yojana for all categories i.e. Shishu, Kishor, and Tarun.
Note – You must prepare a business idea before applying. You have to present your business idea along with application form.
- First of all the borrower(Who wishes to take a loan) under PMMY needs to visit the Private or Commercial bank nearest to his location
- Present your Business Idea along with the Loan Application (Forms are given below)Along with the form you need to provide proof of identity, Proof of Address and recent passport size photographs
- All formalities as per the bank instructions are to be filled by the Borrower
- After completion of the above Steps, the Loan will be sanctioned and will be made available to the Loan Seeker.
MUDRA Bank Loan Scheme Helpline
If you have any doubts, queries regarding the scheme, you can contact the helpline in following ways –
Here is the Common Application Form for All Categories-
PMMY – Important Documents
Official File Explaining the Process –
Official File regarding the Eligibility Criteria –
For any queries regarding PMMY(PM mudra Yojana or Scheme), Kindly leave comments below.