The citizens of India can now apply for the Pradhan Mantri Mudra Yojana Loan (PMMY) online. To encourage small and micro-enterprise owners and help them to promote their business significantly the Government of India has started the initiative of PM Mudra Yojana. Under this scheme, the central government of India provides a monetary incentive of up to INR 10 lakh in the form of a business loan. With the help of financial help, the MSME business owners can expand their businesses without worrying about financial troubles. The interest rate under the scheme is also comparatively lower than any other loan scheme.
Overview of Mudra Yojana Loan
There are a total of three types of Mudra Yojana loans that the eligible citizens of India can apply online or offline. The three types of Mudra loan Yojana are Shishu, Kishore, and Tarun. Under the Shishu category, the borrower is eligible to receive a total of INR 50,000 in the form of a loan. Under the Kishore and Tarun categories, the MSME business owners can take a loan of up to INR 5 lakh and INR 10 lakh respectively. According to the Government of India, the authority doesn’t provide the Mudra loan directly to the MSME business owners but the selected business owners have to collect their amount from the participating branch office of a bank, NBFC, MFIs, etc.
Important Factors
| Name of Scheme | Pradhan Mantri Mudra Yojana Loan (PMMY) |
| Launched By | Central Government of India |
| Date of Launch | April 8, 2015 |
| Beneficiary | MSME business owners |
| Objective of Scheme | Pramote MSME businesses |
| Nodal Department | Department of Financial Services (DFS) |
| State | All States of India |
| Benefits | Provide loans |
| Mode of Application | Offline and online |
| Official Website | https://www.mudra.org.in/ |
Type of Pradhan Mantri Mudra Yojana Loan
As per the central government of India, the loan amount under the Pradhan Mantri Mudra Yojana Loan is divided into 3 categories namely Shishu Kishore and Tarun-
- Shishu- Under the Shishu category, of the Pradhan Mantri Mudra Yojana Loan the authorities will provide monetary incentives of up to INR 50000 to all the selected business owners in the form of loans. This category is most suitable for all dose citizens who have very small-scale businesses.
- Kishore– Under the Kishor category of the PM Mudra Yojana Loan the Government of India will provide financial assistance of INR 50,000 to 5 lakh in the form of a business loan. This category is best suitable for all those citizens who want to start their business or want to expand their small-scale business.
- Tarun– Under the Tarun category of the PM Mudra Yojana Loan the Government of India will provide monetary incentive of INR 5 lakh to 10 lakh in the form of business loans. This category is best suitable for all those business owners who want to expand they are businesses by buying expensive machinery or other essentials for their business.
Main Objective
The main objective of launching the PM Mudra Yojana Loan is to help small business owners by providing financial help. By providing financial assistance to small business the Government of India will give them a chance to grow and create more employment opportunities for other semi-skilled citizens. According to the data collected by authorities, a total of 17625117 loans are sanctioned by the government of India. Till now a total of INR 1,64,751.96 crore has been distributed by the government of India to various MSME business owners in India. This scheme will uplift the social status and standard of living of all the small business owners in India.
Required Documents
Shishu loan
- Proof of Identity– The small business owner must have self-attested copies of the Voter’s ID Card / Driving Licence / PAN Card / Aadhaar Card / Passport / Photo ID issued by the Government of India.
- Proof of Residence– To prove their residence the small business owner must have any of the documents like telephone bill, electricity bill, property tax receipt, domicile certificate.
- The business owners must also have their recent passport-size photographs that are not older than 6 months.
- The business owner must also submit a quotation for all the machinery and other essential items, the name of the supplier, details of machinery, and the price of machinery that is to be purchased.
- Proof of Identity / Address of the Business Enterprise – To prove the identity and address of the business owners must submit copies of valid licenses / Registration Certificates / Other Documents pertaining to the ownership, and identity of the address of the business unit.
For Tarun and Kishore
- Proof of Identity – The small business owner must have self-attested copies of the Voter’s ID Card / Driving Licence / PAN Card / Aadhaar Card / Passport / Photo ID issued by the Government of India.
- Proof of Residence – To prove their residence the small business owner must have any of the documents like telephone bill, electricity bill, property tax receipt, and domicile certificate.
- The business owners must also have their recent passport-size photographs that are not older than 6 months.
- Proof of Identity/Address of the Business Enterprise -To prove the identity and address of the business owners must submit copies of valid licenses / Registration Certificates / Other Documents pertaining to the ownership, and identity of the address of the business unit.
- The small business owner must not be a defaulter in any bank or Financial institute.
- The small business owner must also submit their statement of account, Last two years’ balance sheet, income Tax/sales tax return, projected balance sheet for 1 year, Sales achieved during the current financial year, project report containing details of technical & economic viability, and Memorandum and Articles of Association of the company/Partnership Deed of Partners, etc.
- In absence of a third-party guarantee, an Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net worth.
Eligibility Criteria
- The business owner must be a permanent resident of India.
- The business owners must be above the age of 18 years.
- The business type must be a small and micro-enterprise engaged in manufacturing, trading, or services.
- The business owner must have a good credit history and a viable business plan.
- The business has a clear and viable business plan is required.
- The business owner must not have an agriculture-based business.
Eligible Borrowers
- Individuals
- Proprietary concerns
- Partnership firms
- Private Ltd. companies
- Public companies
- Any other legal forms
Processing Fee
- The processing fees for balloons depend upon the bank’s internal policies.
- According to reports the upfront fee for Shishu category loans is INR 50,000
Silent Features
- Provide loans: Under the scheme, the Government of India will provide financial loans to all small business owners to grow their businesses.
- Expand businesses: By receiving monetary incentives in the form of loans small business owners can purchase various machinery and equipment to expand their business.
- Zero collateral need- All the small and micro business owners of India who want to avail of loan facilities under the scheme do not have to pay any kind of security or collateral.
- Employment generation- By expanding their businesses the small and micro business owners will provide employment opportunities for other citizens also.
Interest Rates
- The interest rates for Mudra Yojana Loan are determined by the lending institutions based on Reserve Bank of India (RBI) guidelines
Online Apply
STEP 1: All the small and micro business owners who want to apply for the PM Mudra Yojana Loan are requested to visit the official website and fill out the application form online.
STEP 2: Once the business owners reach the homepage of the official website they must locate and click on the option called “Apply now”.
STEP 3: A new page will appear on your desktop screen the business owners must enter their name, email address, and mobile number.
STEP 4: After entering all the details the business owners must scroll down and click on the option called “generate OTP”.
STEP 5: Now business owners must enter the OTP that they have received on the registered mobile number and click on the option “submit” to reach to application form page.
STEP 6: Now the application form will appear on your desktop screen the business owners must enter all the details that are asked and attach all the necessary documents.
STEP 7: After all the details the business owners must quickly review it and click on the option “submit” to complete their process.
Offline Application Process
STEP 1: All the small and micro business owners who want to apply for the scheme offline are requested to visit the official Mudra website to download the application form.
STEP 2: Once the small business owner reaches the homepage of the official website they must locate and click on the option called “download application form”.
STEP 3: A new page will appear on your desktop screen the business owners must download the application form according to their category.
STEP 4: After successfully downloading the application form the business owners can print it out and start filling the application form.
STEP 5: After filling out the application form business owners must visit their nearest bank branch and submit the application form to the concerned government official.
Contact Details
- All the business owners who want to get more information regarding the PM Mudra Yojana Loan can contact on- 022 67221526.
Important Downloads
| Common Loan Application form for Kishor and Tarun |
| Application Form for Shishu |
| Checklist for Shishu Application |
FAQs
What is the age criteria to avail of the facilities of the financial loan under the Pradhan Mantri Mudra Yojana Loan?
All the business owners who are above the age of 18 years are eligible to avail the facilities of financial loan under the Pradhan Mantri Mudra Yojana Loan.
What kind of collateral do the business owners have to pay to avail loans under the PM Mudra Yojana Loan?
To avail of the financial loans under the Mudra Yojana Loan small business owners do not have to pay any kind of collateral fees or security.
When was the Pradhan Mantri Mudra Yojana Loan launched?
The Pradhan Mantri Mudra Yojana Loan was launched on April 8, 2015.
Which department of India is administrating the work of Pradhan Mantri Mudra Yojana Loan?
The Department of Financial Services (DFS) is administrating the work of the Pradhan Mantri Mudra Yojana Loan.
How much loan amount will be given to the selected business owners under the Tarun category of the Pradhan Mantri Mudra Yojana Loan?
A financial loan of up to INR 10 lakh will be given to the selected business owners under the term category of the Pradhan Mantri Mudra Yojana Loan.
What is the processing fees under the Shishu category of Pradhan Mantri Mudra Yojana Loan?
The processing fee under the Shishu category of the Pradhan Mantri Mudra Yojana Loan is INR 50,000.