Pradhan Mantri Mudra Yojana is a new scheme developed by government of India under Micro Units Development and Refinance Agency that helps for the development and refinancing activities that relates to micro units. This was brought into existence while presenting the budget for the 2016 financial year.
What is Mudra view?
To bring both the financial and support services providers on excellence can be compared by all the standards with global best practices and standards for the economic useful for the social development.
What is Mudra Mission?
Mudra Yojana changed the lives of those people who are poor in the country. Mudra Yojana is available for entry for youth, women and those who are interested to expand their business. Pradhan Mantri Mudra Yojana (PMMY), this scheme was officially launched in the month of April 2015. Thus, its main objective is to provide loans up to Rs 10 lakhs to the non-corporate, non-farm small and micro-enterprises.
Types of Pradhan Mantri Mudra Yojana
Here are some of the types of those are eligible to apply the Mudra loans
- Shishu Loan
- Kishore Loan
- Tarun Loan
This loan belongs to children and is useful for the small start-ups. A micro business is eligible to apply loan for the amount of Rs. 50,000. Therefore, Shishu loan helps business owners to get a small capital to get started in the MSME sector. A person who is applying for a loan should present his or her idea about the business he wants to start in the Mudra application form.
The Kishore loans come under the category of the Mudra loan which is the best for small business owners, people who already start the business and who wants the capitals for the development of the large enterprises. A person who belongs to this category is eligible to apply the loan amount from Rs. 50,000 to Rs. 5 lakhs. People who are interested to take loan has to fill the Mudra loan application form and has to submit all the documents to show the current position of their enterprise who meets the Mudra loan eligibility requirements.
In this category, they are interested in the development of the small business those are established for some time and interested in the capital expansion, at the same time micro-units that need funds for the purpose of setting up. Therefore, business owners are eligible for the loan of Rs. 5 lakhs to Rs. 10 lakhs. People who borrow loans has to fill the Mudra loan application form and all the present documents to display the latest position of the enterprise along has to submit ID proofs to match the lending institutions of the Mudra loan eligibility criteria. If you want to learn about the Pradhan Mantri Awas Yojana then click on https://www.todaytalk.in/pradhan-mantri-awas-yojana-application-online-status-of-the-application
Therefore, all the loans are fixed for each and every category of Mudra loans. However, you can find a small difference in the interest rates in different banks. Thus, all the interest rates for Shishu, Kishore and Tarun categories come under the range of 10 to 12% and 16%.
|Mudra Loan Type||Loan Amount||Interest Rate|
|Shishu Loan||Up to Rs. 50,000||10 – 12%|
|Kishore Loan||From Rs. 50,000 to Rs. 5 lakh||14 – 17 %|
|Tarun Loan||From Rs. 5 lakh to Rs. 10 lakh||16% onwards|
What is the eligibility criterion for Mudra Loan?
People who are eligible for applying Mudra loans must be followed Non- corporate Small business segment.
- Repair shops
- Machine operators
- Food processors
- Small industries
- Fruit or vegetable vendors
- Truck operators
- Partnership firms
- Small manufacturing units
- Service sector units
What can Mudra loans are used for?
Mudra loans are used for the purpose of
- Commercial vehicle loan
- Loan for a working capital requirement.
- Two-wheeler loan
- Car loan
- Renovating the business space
How to get Mudra loan
To apply for Mudra loan you need to follow all the categories and has to go through the following process.
- The people who wish to apply for a loan under the scheme of mudra must visit the official website https://www.mudra.org.in/ or the commercial bank.
- People who want to present all their business ideas with the loan applications forms along with the other documents are required.
- Borrowers have to fill up all the formalities those are based on the bank instructions.
- The loan will be sanctioned and made easily available for all the above steps that are completed.
What are the documents required for Mudra Loan?
- If a borrower wants to buy a vehicle than he takes the loan for the vehicle under the Pradhan Mantri Mudra Yojana, he has to submit all the required documents.
- You have to fill proper details in the Pradhan Mantri Mudra Yojana application form.
- The vehicle loan application form is also filled properly.
- Who are applying for a loan has to submit 2 passport sized photos?
- Photo identity proof and address proof and income proof.
- Last 6 months bank statements have to submit for mudra loan.
If the borrower wants loans for the business and that to be in an installment loan under the Pradhan Mantri Mudra Yojana, then he must submit all the documents required for the applying loan those are:
Pradhan Mantri Mudra Yojana application form and business installment loan application form is properly filled.
- You have to submit identity proof and address proof.
- Proof of company.
- Have to show 6 months of bank statements.
- Ownership proof or office and residence.
- Proof of continuity of business.
- Qualification proof.
- Trade references.
- If the borrower wishes Business loans and rural business credit under the Pradhan Mantri Mudra Yojana, he has to submit all the required documents to apply for mudra loans
Borrowers have to properly fill the Pradhan Mantri Mudra Yojana application form and Business Installment loan or Rural Business Credit application form.
- Photo identity proof, age proof, and address proof.
- Ownership proof of residence or office.
- Business Vintage proof
- Last 12 month’s bank statement.
- Last 2 years Income Tax Return documents.
Application Form for Pradhan Mantri Mudra Yojana
Here are some of the details to fill the application form those are given below:
You have to visit the official website to fill the application form
- Enterprise name and category has to be referring to for office use. If
- Business information:
- Name of the enterprise
- Constitution if it is proprietary, partnership firm, private limited firm, limited company or if it is any other firm, then it has to be specified.
- Current business address
- Registered office address
- Date of commencement of business
- Business activity that is existing and proposed
- Telephone and mobile number
- Email address
- The registration number of the business
- Social category that is SC, ST, OBC or Minority community. If it is a minority community, then it must be mentioned.
- Information about the proprietor:
- Date of birth
- Residential address
- Mobile number
- Academic qualification
- Experience in years
- ID proof and ID proof number
- Address proof and address proof number
- PAN card or DIN number
- Relationship with the officials or director of the bank, if any.
- Names of associate concerns:
- Name of the associate concern
- Address of the associate concern
- Bank that the associate concern is associated with.
- Nature of the associate concern
- Extent of interest as a proprietor, partner, director or investor in the associate concern.
- Existing banking or credit facilities
The following details must be filled:
- The type of facilities allowed
- A bank that the business is associated with
- Limit availed
- Outstanding amount
- Security lodged
- Asset classification status
- Customer ID
- Credit facilities proposed and the amount and the purpose and the details of the security offered must be mentioned in rupees.
- In case of working capital, the actual sales and projected sales information has to be clearly mentioned.
- In case of Term Loan requirement, the details of the machinery or equipment has to be provided. The details of the type of the machinery, purpose, supplier name, and cost of machine, contribution made by promoter and the loan required must be filled in.
- The past performance and future estimates of sales, profit and capital must be mentioned.
- Statutory obligations’ status has to be mentioned. The statutory obligations are:
- Registration under Shops and Establishment Act
- Registration under MSME
- Drug License
- Latest Sales Tax Return filed
- Latest Income Tax Returns filed
- Any other statutory dues that is outstanding.
- The final part is the declaration, which requires you to pin up 3 passport sized photographs and the signature of the proprietor, partner or director, whose photographs have been affixed.
- The borrower will get an acknowledgement slip that includes the following:
- Application number
- Date of application
- Loan amount requested
- Name of the applicant
- Signature of the applicant
- Signature and seal of the branch official