Pradhan Mantri Mudra Yojana (PMMY) is the Government of India’s flagship project. The initiative provides micro credit/loans of up to Rs. 10 lakhs to income-generating micro firms in the non-farm sector, including manufacturing, trading, and service sectors, as well as agricultural operations like as poultry, dairy, and beekeeping. The Scheme provides financial support to non-corporate, non-farm sector income-generating activities of micro and small businesses through member lending institutions.
Categories of Pradhan Mantri Mudra Yojana
The initiative is divided into three categories: ‘SHISHU’, ‘KISHORE’, and ‘TARUN’, which indicate the stage of growth / development and finance requirements of the beneficiary micro unit/entrepreneur.
- Shishu: Covering loans upto Rs.50,000/-.
- Kishore: Covering loans above Rs.50,000/- and upto Rs. 5 lakhs.
- Tarun: Covering loans above Rs. 5 lakhs and upto Rs. 10 lakhs.
Eligibility
- Individuals
- Proprietary concern
- Partnership Firm
- Private Ltd. Company
- Public Company
- Any other legal forms
The candidate must not be a defaulter with any bank or financial institution and have a good credit history.Individual borrowers may be needed to have the requisite skills, experience, or knowledge to complete the requested task.The necessity for educational qualification, if any, is determined by the nature of the planned activity and the requirements.
Interest rate
The interest rate depends on the scheme’s guidelines and the borrower’s credit history.
Documents Required for registration
- ID Proof
- Address Proof
- Passport size photograph
- Applicant Signature
- Proof of Identity / Address of Business Enterprises
Registration steps
- Go to the PM MUDRA official website, then select the Udyamimitra portal.
- Click on Mudra Loan “Apply Now”
- Pick one of the following: New entrepreneur, existing entrepreneur, and self-employed professional.
- Then, fill in the applicant’s name, email, and mobile number, and Generate OTP.
After Successful Registration
- Fill out both your personal and professional information.
- If assistance with project proposals or other tasks is required, select hand-holding agencies; otherwise, click “Loan Application Centre” and apply.
- Choose the type of loan you require: Mudra Shishu, Mudra Kishore, or Mudra Tarun.
- The applicant must then enter Business Information such as the name of the business, the type of business, and whether it is manufacturing, service, trading, or agricultural activities.
- Fill in additional information such as owner details, existing banking/credit facilities, prospective credit facilities, future estimates, and preferred lender.
- Attach all relevant documents, such as ID proof, address proof, applicant photo, signature, and proof of identity/address of the business enterprise.
- Once the application is filed, an Application Number is produced and must be saved for future.
Documents Required
For Shishu Loan
- Proof of Identity
- A self-attested copy of a voter’s ID card, driver’s license, PAN card, Aadhaar card, passport, or photo ID issued by a government agency, etc.
- Proof of residence
- Recent telephone bill / energy bill / property tax receipt (not older than 2 months) / Voter’s ID Card / Aadhar Card / Passport of Individual / Proprietor / Partners Bank passbook or latest account statement duly confirmed by Bank Officials / Domicile Certificate/Certificate issued by a government authority, local panchayat, municipality, etc.
- Applicant’s recent coloured Photograph (2 copies) not older than 6 months.
- Quotation of Machinery / other items to be purchased.
- Name of supplier / details of machinery / price of machinery and / or items to be purchased.
- Proof of Identity / Address of the Business Enterprise – Copies of relevant Licences / Registration Certificates / Other Documents pertaining to the ownership, identity of address of business unit, if any.
For Kishore and Tarun Loan
- Proof of Identity
- Self attested copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
- Proof of Residence –
- Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
- Applicant’s recent coloured Photograph (2 copies) not older than 6 months.Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
- Applicant should not be defaulter in any Bank/Financial institution.
- Statement of accounts (for the last six months), from the existing banker, if any.
- Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
- Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
- Sales achieved during the current financial year up to the date of submission of application.
- Project report (for the proposed project) containing details of technical & economic viability.
- Memorandum and Articles of Association of the company/Partnership Deed of Partners etc.
- In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.
The loans under the Pradhan Mantri Mudra Yojana can be obtained through eligible Member Lending Institutions (MLIs), which include:
- Public Sector Banks
- Private Sector Banks
- State operated cooperative banks
- Rural banks from regional sector
- Micro Finance Institution (MFI)
- Non-Banking Finance Company (NBFC)
- Small Finance Banks (SFBs)
- Other financial intermediary approved by Mudra Ltd. as member financial institutions
