What is Pradhan Mantri Mudra Loan Yojana?
A lot of effort is being made by the Central Government to promote Micro Small and Medium Enterprises (MSME) i.e. small and medium sized business. Under this effort, Pradhan Mantri Mudra Yojana (PMMY) – Pradhan Mantri Mudra Yojana is being run. Under the Mudra loan scheme, MSME businessmen get business loans up to Rs 10 lakh without any collateral.
What is Mudra loan?
The full form of Pradhan Mantri Mudra Yojana (PMMY) is Micro Units Development Refinance Agency. Mudra Yojana has started in April 2015. Mudra loan scheme is being run by the Ministry of Micro, Small and Medium Enterprises, Government of India. Under this scheme, business loan is given to expand the old business and to start a new business.
Objective of Prime Minister Mudra Loan Scheme
The main objective of PM Mudra Loan Yojana is that there should be maximum self-employment in the country. There is a plan to strengthen all the businessmen of MSME category who are facing financial problems in running their business through Mudra loans.
What are the main advantages of Mudra loan scheme? (Benefits of Mudra Loan)
The following benefits are available under Pradhan Mantri Mudra Yojana:
- Very few documents are required for Mudra loan.
- The eligibility for PM Mudra loan is basic.
- Through Mudra Yojana, businessmen are helped to increase their business.
- Through the scheme, businessmen can take a business loan of up to 10 lakh without mortgaging the property.
- There is no processing fee to be paid on Mudra loan approval.
- Businessmen can use the business loan available under the Mudra loan scheme as per their wish to meet the urgent needs of their business.
- Under the scheme, property is not to be mortgaged in lieu of business loan.
- Mudra loan eligibility is very basic.
The main attraction of Mudra Loan Yojana (Features of Mudra Loan Yojana)
The funds available under the Mudra loan scheme come under the category of unsecured business loans and do not require any collateral. Mudra loan is provided for all MSME business except agriculture.
Mudra loan is guaranteed by the government under the Credit Guarantee Fund Scheme . The emphasis of the Central Government is that more and more businessmen can get the benefit of the Mudra loan scheme. This is the reason that the institutions providing Mudra loans provide loans on the basis of priority to the customers seeking Mudra loans.
Mudra loan scheme is divided under 3 categories. The three types are as follows:
- Tarun Loan Yojana
- Kishore Loan Yojana
- Shishu Loan Yojana
Responsibilities of Mudra Loan
Under the Pradhan Mantri Mudra Yojana, you are given a loan to start your own business and to expand the old business. Following are the key responsibilities of Prime Minister Mudra Loan:
- To assist those businessmen whose business is facing shortage of funds under MSME loan .
- To provide financial support to small scale MSME businessmen.
- Supporting those people who want to start small or medium scale business through MSME loan.
- Providing financial help to local small scale industries.
- Promoting Vocal for Local.
Types of Mudra Loan Scheme
As mentioned above, Mudra loan is available in 3 categories. By saying category here it means for which type of business the business is given. The categories of Mudra loan are as follows:
|serial number||loan category||use of loan|
|1.||Shishu Loan Yojana||This is the first stage loan for Mudra loan. Business loan up to 50 thousand is available under the Shishu loan scheme. The amount of Shishu loan is available for expansion of micro business and for starting a new business.|
|2.||Kishore Loan Yojana||Under Kishore Loan Yojana, business loans are given between more than 50 thousand and up to 5 lakh.|
|3.||Tarun Loan Yojana||Business loans ranging from 5 lakh to 10 lakh are given under Tarun Loan Yojana.|
Mudra Loan Eligibility – Mudra Loan Eligibility
The following are the eligibility criteria for taking Prime Minister Mudra Loan :
- Must be an Indian citizen.
- Want to do any business other than farming or want to expand the business already running.
- To start the business and to expand the business, an amount of up to 10 lakhs is needed.
- Not a corporate entity.
- All industries in the Micro, Small and Medium Enterprises (MSME) sector are eligible for the Mudra scheme.
Money has to be taken for business needs.
Where and from how many banks do you get Mudra loan?
Under Pradhan Mantri Mudra Yojana, Mudra loans can be taken from 21 government banks, 17 private sector banks, 31 regional rural banks, 4 cooperative banks, 36 micro finance institutions and 25 non-banking financial companies (NBFCs) in the country. The names of all the institutions of Mudra loan are as follows:
List of public sector banks giving Mudra loan
- Allahabad Bank , Public Sector Bank
- Andhra Bank, Public Sector Bank
- Bank of Baroda, Public Sector Bank
- Bank Of India Public Sector Bank
- Bank of Maharashtra, Regional Banks
- Canara Bank , Public Sector Bank
- Central Bank Of India Public Sector Bank
- Corporation Bank , Public Sector Bank
- Dena Bank, Public Sector Bank
- IDBI Bank Limited , Public Sector Bank
- Indian Bank, Public Sector Bank
- Indian Overseas Bank , Public Sector Bank
- Oriental Bank Of Commerce , Public Sector Bank
- Punjab And Sind Bank, Public Sector Bank
- Punjab National Bank, Public Sector Bank
- State Bank Of India, Public Sector Bank
- Syndicate Bank , Public Sector Bank
- UCO Bank, Public Sector Bank
- Union Bank Of India, Public Sector Bank
- United Bank Of India , Public Sector Bank
- Vijaya Bank, Public Sector Bank
Mudra Loan Cooperative Bank
- The Ahmedabad Mercantile Co-op Bank Ltd. Co-Operative Bank
- AP State Apex Co-op Bank Ltd. The Co-Operative Bank
- Bassein Catholic Co-Op Bank Co-Operative Bank
- Nagrik Credit Co-op Bank Ltd. Sahakari Bank
- Dombivli Nagari Cooperative Bank Limited Cooperative Bank
- Gujarat State Co-op Bank Ltd. Co-Operative Bank
- Jalgaon Janata Sahakari Bank Limited Cooperative Bank
- Kalupur Commercial Cooperative Bank Cooperative Bank
- Mehsana Urban Co-op Bank Sahakari Bank
- Nutan Nagrik Sahakari Bank Limited Cooperative Bank
- Rajkot Nagarik Cooperative Bank Cooperative Bank
- Saraswat Cooperative Bank Cooperative Bank
- The Surat People Co-Op Bank Ltd. Cooperative bank
- Tamil Nadu Apex State Co-Op Bank Limited Co-Operative Bank
- TJSB Sahakari Bank Limited
- list of rrb banks
- Andhra Pradesh Rural Development Bank RRB
- Andhra Pragati Gramin Bank RRB
- Baroda Gujarat Gramin Bank RRB
- Baroda Rajasthan Kshatriya Gramin Bank RRB
- Baroda Uttar Pradesh Gramin Bank RRB
- Bihar Gramin Bank RRB
- Chaitanya Godavari Gramin Bank RRB
- Deccan Gramin Bank RRB
- Dena Gujarat Gramin Bank RRB
- Gramin Bank Of Aryavart RRB
- Himachal Pradesh Gramin Bank RRB
- Karnataka Vikas Grama Bank RRB
- Kashi Gomti Samyut Gramin Bank RRB
- Kaveri Grameena Bank RRB
- Kerala Gramin Bank. rrb
- Madhya Bihar Gramin Bank RRB
- Maharashtra Gramin Bank RRB
- Malwa Gramin Bank RRB
- Marudhara Gramin Bank RRB
- Meghalaya Gramin Bank RRB
- Narmada Jhabua Gramin Bank RRB
- Pallavan Grama Bank. rrb
- Pandian Grama Bank RRB
- Pragati Krishna Gramin Bank RRB
- Pratham Gramin Bank RRB
- Puduvai Bharathar Grama Bank RRB
- Punjab Gramin Bank RRB
- Saptagiri Gramin Bank RRB
- Sarva Haryana Gramin Bank RRB
- Sarva UP Gramin Bank RRB
- Saurashtra Gramin Bank RRB
- Sutlej Gramin Bank RRB
- Telangana Gramin Bank RRB
- Tripura Gramin Bank RRB
- Uttar Bihar Gramin Bank RRB
- Vidarbha Konkan Gramin Bank
How to fill Mudra Loan Application Form? Pradhan Mantri MUDRA Yojana Application
To fill the Mudra loan form, you must first go to any bank near you. Follow these steps to fill the application form for Mudra loan from Mudra Yojana :
- First of all find out about your nearest bank which is listed under Mudra loan scheme.
After selecting the bank, you have to make your business plan.
- In the business plan, you have to tell how you will use the amount received as a business loan.
- When the business plan is ready, then you will have to take the Mudra loan scheme form and fill it properly.
- Check in the form that which documents will be required at the time of submission. Keep all relevant documents ready.
- After filling the Mudra form for Mudra loan, one has to attach the required documents such as identity card, address proof, balance sheets, caste certificate (if applicable), income tax return, sales tax etc.
- When the form is completely filled and all the documents are attached, now it needs to be checked once again. Check the form one again.
- When you are sure that there is no need to do any correction in the form, then submit it to the bank. Now the bank will verify the form and inform you for the next step.
Mudra Loan Online Apply – Mudra Loan Online Application
Let us tell you for information that online Mudra loan application is also filled for Mudra loan. Follow the steps below to apply for Mudra loan online :
- Select the Associated Bank from Mudra Yojana.
- Login to the Bank’s website.
- Click on the Mudra Loan Apply Online tab.
- The form for Mudro loan will open.
- Fill the form properly.
- After filling the form upload all the required documents.
- Submit the form after uploading the documents.
After submitting the Mudra application form, the bank will inform you by when your business loan will be processed.
Know about Mudra Card- What is Mudra Card?
Mudra Card is a card like an ATM. Just as money can be withdrawn from an ATM card by going to an ATM, in the same way money can also be withdrawn from a Mudra card. But here it is necessary to inform you that ATM card withdraws money from your bank account but Mudra card gives you loan. Actually Mudra card is used to meet the working capital needs of the business.
What are the rules for taking Mudra loan?
Only the following categories of businesses get Mudra loans under the Mudra loan scheme:
- Proprietorship Firm
- partnership firm
- small manufacturing unit
- service sector company
- fruit and vegetable seller
- truck/car driver
- hotel owner
- repair shop
- machine operator
- small scale industry
- Food Processing Unit
- Any other village industry in rural and urban areas
What is required for Mudra loan to start a new business?
First of all a business plan has to be made. One has to apply for Mudra loan by submitting the business plan to the bank.
How to prepare before taking Mudra loan?
It is imperative to make the following preparations before taking a Mudra loan:
- making a business plan
- Choosing a Bank for Mudra Loan
- Fulfilling Mudra Loan Eligibility
- gathering all the necessary papers
- apply for mudra loan
- Completing the preparation to use the amount received as Mudra loan.
Can women get Mudra loan?
Yes, absolutely women businessmen get Mudra loan. According to the website of Infact Mudra, every third beneficiary of Mudra loan is a woman. The emphasis of the Ministry of Micro, Small and Medium Enterprises is that more and more Mudra loans should be provided to women.
Frequently Asked Questions
- Can Mudra loan be given by any private institution other than the bank?No. Mudra loan is available only from 21 public sector banks, 17 private banks, 31 regional rural banks, 4 cooperative banks, 36 micro finance institutions and 25 non-banking financial companies (NBFCs). Although micro finance institutions and NBFCs are private entities, they are registered by the RBI.
- What is Mudra Yojana? – What is MUDRA loan scheme?Mudra Yojana is a business loan scheme. Under this scheme, MSME businessmen get business loans up to Rs 10 lakh without any collateral.
- Is subsidy available on Mudra loan?No. No subsidy from any side is given by the Central Government on the loan taken under Mudra Yojana. However, the repayment tenure and monthly installment (EMI) of Kishor and Tarun Mudra loans are decided according to the loan amount and the nature of the business.
- What is Mudra Loan Toll Free Number?Mudra loan toll free number is 18001801111 and 1800110001. And the website of Mudra is https://www.mudra.org.in/.
- Is Startup Mudra Loan available?The ticket size of Mudra loan is Rs 50,000, Rs 5 lakh and Rs 10 lakh. No big startup can be imagined with this much money. So it is certain that Mudra loan is not available for startups. But if someone wants to start an MSM category business, then Mudra loan can be taken.
- In how many days Mudra loan is available?There is no fixed time limit for getting Mudra loan. If all the documents are complete and everything is correct at the time of Mudra loan application, then Mudra loan is available within 7 to 10 days.
- What is the interest rate of Mudra loan? – What is the interest rate of Mudra loan?The interest rate of business loan available through Mudra Yojana depends on the respective banks. However, generally the interest rates of Mudra Yojana start from 8 percent. It is also important to know that the interest rates of Mudra loan also depend on the loan amount and repayment period etc.
- When will Mudra loan be operational?Getting Mudra loan has started. You can contact your nearest bank for Mudra loan.
- Is there any age restriction for Mudra loan scheme? – Is there any age limit for Mudra loan?Yes. Under the Pradhan Mantri Mudra Loan Yojana, the minimum age for taking a business loan should be 23 years and the maximum age should be 65 years.