The Pradhan Mantri Mudra Yojana or PMMY is a flagship scheme of the Government of India to extend affordable credit to micro and small enterprises. Mudra schemes are designed to bring enterprises into the formal financial system, or to “fund the unfunded”.
Loans under PM mudra loan scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading, and services. Apply for a Mudra Loan online today and use the Mudra EMI calculator facility to grow your business.
Mudra Loan: Benefits
- Credit facilities to micro and small enterprises
- No security or collateral required
- No processing charges
- For fund or non-fund-based requirements
- Can be used for a variety of purposes
- No minimum loan amount
Mudra Loan: Features
There are three types of Mudra loans depending on the loan amount:
- Shishu: Loans sanctioned under the PMMY scheme up to Rs. 50,000
- Kishore: Loans sanctioned under the PMMY scheme from Rs. 50,001 up to Rs.5 Lakhs
- Tarun: Loans sanctioned under the PMMY scheme Rs. 5,00,001 up to Rs. 10 Lakhs
- While there is no minimum loan amount under the Mudra loan scheme, the maximum loan amount that can be taken under the PMMY is Rs. 10 Lakhs.
- Borrowers don’t need to pay processing charges or offer collateral if they avail a Mudra loan.
- As per the PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can include those engaged in allied agricultural activities, such as horticulture and fisheries.
- The interest rate on Mudra loans is determined by the marginal cost of lending rate or MCLR, which is calculated according to the RBI guidelines.
Mudra Loan: Eligibility
- All non-farm enterprises
- Under micro enterprises and small enterprises segment
- Engaged in income generating activities
- Engaged in manufacturing, trading and services
- Whose credit needs are up to Rs. 10 lakhs
- Now allied agriculture activities have also been included under PMMY scheme w.e.f. 01/04/2016.
Mudra Loan: Documentation
- Duly filled Mudra Loan application form.
- Identity proof documents like Aadhaar/PAN/Driving License/Passport/Voter ID/ Government-issued photo ID of all applicants (in case of joint loans).
- Residence proof documents like latest utility bill/ Aadhaar/Voter ID/Passports/bank account statement of all applicants (in case of joint loans).
- Business ID and Address proof documents (Licenses/Registration Certificates/Deed Copy, etc.).
- Latest photographs of the applicant/s.
- Proof of minority, if any.
- Proof of loan requirement, i.e., equipment quotations, vendor details, etc.
Mudra Loan : Most Important Terms and Conditions (MITC)
Maximum Limit
Rs. 10 lakhs
Repayment Period
Term / Demand – Maximum up to 84 months with suitable moratorium subject to annual review
Working Capital – For 12 months subject to annual review
Margin
As per Banks Guidelines
Bureau Score validation
Minimum bureau score cut off as per Bank’s guidelines
Processing Fee
Nil for all category
Security
Hypothecation of assets created by Banks finance
No collateral
Insurance / Guarantee
Mudra loans are covered under CGTMSE coverage.
Pre-closure charges
Nil