Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched in 2015 for providing loans upto 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.
These loans are given by Commercial Banks, RRBs, Small Finance Banks, Cooperative Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply online.
Under the aegis of PMMY, MUDRA has created three products namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage 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.
MUDRA, which stands for Micro Units Development & Refinance Agency, is a financial institution set up by the Government of India under PMMY for development and refinancing micro unit enterprises.
The loans are given for income generating activities in manufacturing, trading and services sectors and for activities allied to agriculture.
Banks and financial institutions have sanctioned Rs 23.2 lakh crore to over 40.82 crore beneficiaries since its launch.
Of the total, Shishu accounts for 83% of the total loans while Kishore 15% and the remaining 2% Tarun.
MUDRA loans offered in three categories signifies the stage of growth or development and funding needs of the borrowers:-
– Shishu: covering loans upto Rs. 50,000/-
– Kishore: covering loans above Rs. 50,000/- and up to Rs. 5 lakhs
– Tarun: covering loans above Rs. 5 lakh and up to Rs. 10 lakhs
Eligibility;
Any Indian Citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is up to 10 lakh can approach either a Bank, MFI or NBFC for availing of MUDRA loans under PMMY. The usual terms and conditions of the lending agency may have to be followed for availing of loans under PMMY. The lending rates are as per the RBI guidelines issued in this regard from time to time.
The scheme was launched to encourage small businesses, and banks were asked to provide collateral-free loans up to Rs 10 lakh under the above three categories.
How To Apply For MUDRA Loan Online?
You can apply for a MUDRA loan online as well as offline.
- Ensure you have the required documents before you start the online process of submitting it to the bank or the lending institution.
- Visit the official website of the PMMY-authorised financial institution (Bank, NBFC etc.).
- Download the relevant form of the loan (Shishu, Tarun, or Kishore).
- You will have to fill in details ranging from personal and business details like your name, date of birth, residential/business address, and educational qualifications, etc., in the online form
- Once the MUDRA loan application form and attached documents are processed and verified, the loan shall be approved and disbursed into your bank account.
How To Apply For MUDRA Loan Offline?
- You may visit a financial institution like a bank or NBFC.
- When you go, ensure that you have the business plan ready along with necessary documents.
- Fill out the loan application form with the necessary details.
- Ask for the help if you face any difficulty while filing the form
- Submit the application form
- The lender will verify the documents. Once the request is approved, the loan amount will be disbursed to your bank account.
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