Pradhan Mantri Mudra Yojana: Scheme Details, Eligibility, Objectives & Benefits

What is Pradhan Mantri Mudra Yojana (PMMY)?

Pradhan Mantri Mudra Yojana (PMMY) is a loan scheme launched under "Mudra Bank", which was launched by the Indian Prime Minister Shri Narendra Modi on 08 April 2015 in New Delhi. This scheme is being considered as a revolutionary step in the direction of promoting small traders. The objective of Mudra Bank is to bring young, educated and trained entrepreneurs into the mainstream by helping them.

What is Mudra Bank?

Meaning of Mudra Bank: The full name of Mudra Bank is 'Micro Units Development Fund Refinance Agency'. Through this bank, loans up to Rs 10 Lakh will be given to meet the financial needs of small and medium-sized industries under the Pradhan Mantri Mudra Yojana. Mudra Bank has been established as a statutory body. In the initial phase, Mudra Bank will work as a unit of SIDPE.

Mudra Loan Types

Under the Mudra scheme, the Mudra loan is divided into three parts keeping in mind the needs of different industries. There are three types of loans under Mudra Yojana:

Shishu Loan: Under this scheme, loans up to Rs 50,000/- are given under Shishu Loan. At least 60% of the loans under the Mudra scheme will be given in the form of Shishu loans.
Kishor Loan: Under this scheme, loans above Rs 50,000/- and up to Rs 5 lakh are given under Kishore Loan.
Tarun Loan: Under this scheme, loans above Rs 5 lakh and up to Rs 10 lakh are given under Tarun Loan.

Eligibility of Pradhan Mantri Mudra Bank Scheme?

Under the Mudra scheme, every person who has a small business in his name or has the correct documents of partnership with anyone or any small small unit and shopkeepers can get loans under this Mudra bank scheme.

How to get loan under Mudra Yojana?

If any Indian citizen wants to take a loan under the Mudra Loan Scheme, then he has to follow the procedures given below:-

Citizens willing to take loan under Pradhan Mantri Mudra Yojana will first have to go to the nearest bank and contact the bank for Pradhan Mantri Mudra Yojana and get the form of the scheme from them.
Then by filling the loan application form, you will have to submit the documents asked for and the detailed description of the business you do or any new business you want to start.
After this all the formalities as prescribed by the bank have to be completed.
After completing all the formalities, your loan will be sanctioned and you will get it in a few days.

Documents required for applying in Pradhan Mantri Mudra Yojana?

To get the Pradhan Mantri Mudra Loan, you will have to provide PAN Card / Aadhar Card / Driving License / Voter ID Card or Passport whichever is available with you for identification.
You can also give Voter ID Card / Aadhar Card / Passport / Electricity Bill for proof. If the applicant to get Prime Minister Mudra loan is from Scheduled Caste, Tribe or Backward Class. So he has to give certificate also.
Anyone interested in getting Prime Minister Mudra Loan wants to open a business. License registration certificate or other documents related to it will also have to be given.
If the person wants to start a new business on a large scale or want to expand his business further. So he has to submit all the reports related to that business.
Under the Pradhan Mantri Mudra Bank Yojana, the person will also have to give details of sales and profits and losses during the financial year. If the person is partnering with any company or any business, then he will also have to give that copy.
When the person applies, he has to give his two photographs if he is partnering with someone else. So he will have to give two photos of her as well.

Benefits (Features) of Pradhan Mantri Mudra Yojana?

Under this scheme, small entrepreneurs will be given loans ranging from 50 thousand to 10 lakh rupees at a low interest rate.
The central government will spend 20 thousand crore rupees on this scheme. Along with this, a credit guarantee of Rs 3000 crore has been kept for this.
Mudra Bank will re-finance small finance institutions (Micro Finance Institutions) so that they can give loans to small entrepreneurs under the Pradhan Mantri Mudra Yojana.
Under Mudra Bank, loans will be given on priority to SC/ST entrepreneurs.
The vast network of the Department of Posts will be used to expand its reach.
Mudra Bank will help 5.77 crore small business units across the country. It is very difficult for them to take loan from the bank right now.

Interest Rate of Pradhan Mantri Mudra Yojana:

There is no fixed interest rate under the Pradhan Mantri Mudra Yojana. The interest rate can be different in different banks and depending on the risk of the business of the applicant, the bank interest rate can also be different. Generally, the interest rate in the Mudra scheme is around 12% per annum.

Mudra Loan Application Form:

You all must be thinking that from where we can download or get this Mudra Bank Loan Application Form? To take loan under Pradhan Mantri Mudra Yojana, you can get the application form (application form) from any nearest bank or you can also download the Mudra loan application form online from the bank's website. You can get more information related to this scheme by visiting http://www.mudra.org.in/ website. Presently loans under Mudra Yojana are being given by the following institutions: