PM Mudra Loan: The Pradhan Mantri Mudra Yojana (PMMY) is a prominent initiative implemented by the Government of India. This scheme aims to support micro enterprises involved in income-generating activities within the non-farm sector, including manufacturing, trading, and service sectors. It also encompasses activities related to agriculture such as poultry farming, dairy production, and beekeeping.
The scheme facilitates financial assistance of up to Rs. 10 lakh, which is provided by Member Lending Institutions to micro and small entities engaged in non-corporate, non-farm sector income-generating activities. These entities consist of numerous proprietorship and partnership firms operating as small manufacturing units, service sector establishments, shopkeepers, fruit and vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors, and various others.
Primary Purpose of PM Mudra Loan:
- The main aim of the Mudra Loans is to foster entrepreneurship, especially among individuals belonging to marginalized and economically disadvantaged sections of society.
- By providing financial assistance to small businesses, these loans play a crucial role in creating job opportunities and ultimately reducing unemployment rates.
- Additionally, by supporting the growth and expansion of small enterprises, Mudra Loans contribute significantly to overall economic development and prosperity.
Beneficiaries of PM Mudra Loan:
- The Mudra Loan covers a diverse range of activities, including
- The food products sector, Transportation vehicles for both goods and passengers, Social and personal service activities, Business loans for shopkeepers and traders, Textile products sector, Agriculture-related activities,
- The equipment finance scheme for micro units.
Eligible member lending institutions (MLIS):
- Public sector banks
- Private sector banks Regional rural banks & State cooperative banks Non-banking finance companies (NBFCs)Small finance banks (SFBs)
- Financial intermediary approved by Mudra Ltd. as member financial institutions
The applicable interest rate is determined by Member Lending Institutions in accordance with the guidelines set by the Reserve Bank of India. These interest rates may be declared periodically.
Classification of PM Mudra Loan:
The classification of the scheme into three categories, namely ‘SHISHU’, ‘KISHORE’, and ‘TARUN’, represents the different stages of growth and development, as well as the funding requirements, for the micro units and entrepreneurs.
- In the ‘SHISHU’ category, loans up to Rs. 50,000 are provided.
- In the ‘KISHORE’ category, loans above Rs. 50,000 and up to Rs. 5 lakh are covered.
- In the ‘TARUN’ category, loans above Rs. 5 lakh and up to Rs. 10 lakh are included.
Let’s discuss more about SISHU MUDRA LOAN:
Discover the incredible benefits of the Shishu Mudra Loan, a remarkable offering under the PMMY Mudra Yojana. This scheme empowers borrowers to secure loans up to Rs.50,000, enabling them to fulfill their business needs. The Shishu scheme is primarily facilitated by Micro Finance Institutions (MFIs), renowned for their provision of loans to support micro-enterprises and small business ventures. Embrace this opportunity and unlock the potential of your business today!
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What are the possible uses of the Shishu Mudra Loan?
- The Shishu Mudra Loan can be utilized for various purposes, including but not limited to: modernizing businesses, expanding operations, acquiring equipment, and renovating establishments.
- It is available for both new and established businesses, such as entrepreneurs, service sector companies, microbusinesses and industries, auto repair shops, truck drivers, fruit and vegetable vendors, and micro-manufacturing businesses.
What are the key advantages of Mudra Shishu Loans?
- Avail loans up to Rs.50,000 without the need for collateral.
- Enjoy zero processing fees.
- Benefit from a flexible repayment period of 3-5 years.
- Conveniently submit applications online or offline.
Documentation for PM Mudra Loan
The enrollment process requires the following prerequisites:
- Identification proof
- Address proof
- Passport size photograph
- Applicant signature
- Proof of identity/address of business enterprises.
How to apply for PM Mudra Loan?
- Online:
- Go to the Udyami Mitra website at https://udyamimitra.in/ and click on “Apply Now”.
- Provide your name, email address, and mobile number at the bottom of the page. Click on “Generate OTP” and enter the OTP received. Verify the OTP by clicking on the “Verify OTP” button.
- Fill in all your personal and professional details on the next page. Click on the “Apply Now” button under “Loan Application Center”.
- Choose ‘Shishu’ to apply for a Shishu Loan.
- Enter the necessary details about your business, including background information of the proprietors and directors, future working capital estimate, and lender preference.
- Once you have filled in all the information, click on the ‘Submit’ button. You will then be directed to a declaration page. Tick the appropriate checkbox to continue and complete the application process.
- After completing the Mudra Shishu Loan application process, you will see a success message on the screen with your loan application number. Make sure to note down the reference number for future correspondence.
- Offline:
- Alternatively, if you prefer to apply offline, you can visit the nearest branch of the bank where you want to avail the Mudra Shishu loan.
- Obtain the Mudra loan application form from a bank official, fill in all the required details, attach the relevant documents, and submit it to the bank official.
- Once your documents are verified, your loan will be approved and the amount will be disbursed to your bank account
Borrowers also have the option to apply for MUDRA loans online through the Udyami Mitra portal (www.udyamimitra.in).
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FAQ’s: PM Mudra Loan
What amount of loan an individual is getting from PM Mudra Loan?
An individual is getting up to 10 lakh rupees loan.
What is the main Purpose of PM Mudra Loan?
The main aim of the Mudra Loans is to foster entrepreneurship.
From where we can apply online for PM Mudra Loan?
By visiting the Udyami Mitra website at https://udyamimitra.in/.
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