How to get a Pradhan Mantri MUDRA Yojana 2024 loan?

Now that Pradhan Mantri Mudra Yojana is happening, it's time to learn more about this initiative via Vakilsearch

Pradhan Mantri Mudra Yojana New Update

1. Collateral-free loans up to ₹10 lakh: Under the previous version of the scheme, collateral-free loans were available only up to ₹5 lakh. This limit has now been doubled to ₹10 lakhs, making it easier for small businesses to access formal financing channels.
2. Access to credit without any hassle: One of the major problems faced by small businesses is the lack of access to formal banking channels due to their informal status. To address this issue, Pradhan Mantri Mudra Yojana New Update will enable them to get credit without any hassle by providing them with a unique identification number (UID). This will help reduce their dependence on informal sources of finance and improve their creditworthiness in the eyes of lenders.

PMMY Loans Disbursed So Far

1. Since its launch, the Pradhan Mantri Mudra Yojana (PMMY) has provided over ₹3 lakh crore in loans to small businesses and entrepreneurs across India. As of  2019, nearly 12 million loans had been disbursed under the scheme, with 80% going to microenterprises and 20% to small businesses.
2. The PMMY is a part of the government’s wider effort to support the growth of small businesses in India. It provides access to financing for those who might not otherwise be able to obtain a loan from a bank or financial institution. The scheme has helped to create jobs and boost economic growth, as well as promote financial inclusion.
3. The Pradhan Mantri Mudra Yojana is open to all Indian citizens who wish to start or expand a business. Loans can be used for a range of purposes, including working capital, machinery, equipment, furniture, and vehicles. The maximum loan amount is ₹10 lakh and the interest rate is capped at 9%. 
4. So far, the PMMY has been successful in supporting the growth of small businesses across India. It has helped to create jobs and boost economic activity, while also promoting financial inclusion.

Brief Summary of Pradhan Mantri Mudra Yojana

Objective of Pradhan Mantri Mudra Yojana

The objective of the PMMY is to promote entrepreneurship and support the growth of small businesses. Under the PMMY, borrowers can avail of loans of up to ₹10 lakhs for business purposes. The interest rate on these loans is subsidised, and repayment terms are flexible, making it easier for small businesses to obtain the financing they need to grow and expand.

Features of Mudra Loan under Pradhan Mantri Mudra Yojana

• Loan amount: The loan amount under the Mudra scheme ranges from ₹50,000 to ₹10 lakh.
• Repayment tenure: The repayment tenure for Mudra loans ranges from 12 to 60 months.
• Interest rate: The interest rate on Mudra loans is fixed by the lending institution, but it is generally lower than the interest rate on other types of business loans.
• Collateral: Mudra loans are collateral-free loans, which means that the borrower does not need to pledge any asset as security for the loan.
• Eligibility: The Mudra scheme is open to all Indian citizens who are engaged in a non-farm, non-corporate, and non-MSME business activity.

Mudra Loan Categories

The Pradhan Mantri Mudra Yojana has three categories of loans:

1. Shishu: This category is for loans up to ₹50,000.
2. Kishore: This category is for loans between ₹50,000 and ₹5 lakh.
3. Tarun: This category is for loans between ₹5 lakh and ₹10 lakh.

Comparison of Business Loan Interest Rates Offered by Top Banks/NBFCs

Here is a comparison of business loan interest rates offered by top banks and NBFCs in India:

Eligibility Criteria

The following are the eligibility criteria for Pradhan Mantri Mudra Yojana:

1. The borrower must be an Indian citizen.
2. The borrower must be engaged in a non-farm, non-corporate, and non-MSME business activity.
3. The borrower must have a good credit score.
4. The borrower must have a viable business plan.

PMMY

The Pradhan Mantri Mudra Yojana has been a game changer for small businesses in India, providing them with the much needed access to finance which was earlier difficult to obtain. The scheme has helped small businesses grow and create jobs, contributing to the overall development of the economy.

Mudra Loan Types

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India that provides collateral-free credit to micro and small enterprises.

The scheme has three loan categories – Shishu, Kishor, and Tarun:

1. Shishu Loan: The Shishu loan is the most basic category under Pradhan Mantri Mudra Yojana, with a maximum loan amount of ₹50,000. This loan can be used for any business purpose, including working capital, equipment purchase, etc. No collateral is required for this loan category.
2. Kishor Loan: The Kishor loan category is for small businesses that require a higher loan amount than what is available under the Shishu category. The maximum loan amount under this category is ₹5 lakh. Collateral may be required for this loan category depending on the credit worthiness of the applicant.
3. Tarun Loan: The Tarun loan category is for medium-sized businesses that need a higher loan amount than what is available under the Kishor category. The maximum loan amount under this category is ₹10 lakhs. As with the Kishor category, collateral may be required for this loan depending on the credit worthiness of the applicant.

Beneficiary of Pmmy

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India that aims to provide financial inclusion for small businesses and entrepreneurs. The scheme provides access to credit for beneficiaries who are unable to obtain loans from traditional banking channels. PMMY has helped to revive the informal sector and boost economic growth in rural and semi-urban areas.

The scheme has three main categories of beneficiaries:

1. Micro Enterprises: These are enterprises with an annual turnover of up to ₹5 crore. Beneficiaries in this category can avail of loans of up to ₹10 lakh for business purposes.
2. Small Enterprises: These are enterprises with an annual turnover of between ₹5 crore and ₹50 crore. Beneficiaries in this category can avail of loans of up to ₹1 crore for business purposes.
3. Medium Enterprises: These are enterprises with an annual turnover of above ₹50 crore. Beneficiaries in this category can avail of loans of up to ₹5 crore for business purposes.

Benefits of Pradhan Mantri Mudra Yojana

1. Collateral-free loans: Borrowers do not need to provide any collateral to avail of a loan under the PMMY. This makes it easier for small businesses and entrepreneurs to access finance.
2. Affordable interest rates: Interest rates on PMMY loans are capped at 9% per annum, making them affordable for borrowers.
3. Long repayment tenure: Borrowers can repay their PMMY loan over a period of 5 years, giving them ample time to repay the loan without any financial stress.
4. Wide range of eligible activities: The PMMY covers a wide range of activities, from agriculture and manufacturing to service sector enterprises. This makes it easier for small businesses to obtain financing for their desired activity.

Important Documents of Pradhan Mantri Mudra Yojana (Eligibility)

1. Proof of identity: This could be your PAN card, Aadhar card, passport or any other government-issued ID proof.
2. Proof of address: This could be your ration card, Voter ID, utility bills or any other official document that has your current address mentioned on it.
3. Photograph: A recent passport-sized photograph is required for submission.
4. Bank account statements: Last 6 months’ bank account statements are required in order to verify your repayment capacity.
5. Business proof: In case you are seeking a loan for business purposes, you will need to submit relevant documents such as your business registration certificate, tax returns etc., as proof.

Features of Pradhan Mantri Mudra Yojana

1. The scheme offers loans of up to ₹10 lakhs for small businesses and entrepreneurs. 
2. The scheme is interest free for loans up to ₹5 lakhs. 
3. The scheme has been designed to promote entrepreneurship and create employment opportunities.

Lending Activities

1. Lending activities under the Pradhan Mantri Mudra Yojana (PMMY) are aimed at providing financial assistance to small businesses and entrepreneurs. Under the scheme, banks and financial institutions offer loans of up to ₹10 lakh to small businesses and individuals for business purposes.
2. The scheme was launched with an aim to provide easy access to credit for small businesses and individuals. Since its launch, PMMY has helped boost the growth of small businesses across the country. 
3. PMMY has been a boon for small businesses in India, helping them grow and create jobs. The scheme has also helped increase banking penetration in rural areas. With more people now able to access credit, PMMY is playing a key role in inclusive growth in India.

Mudra Card Under Pradhan Mantri Mudra Yojana

1. No interest on withdrawals: With the Mudra card, there is no interest charged on withdrawals from banks or financial institutions. This makes it an affordable option for small businesses and entrepreneurs.
2. No limit on transactions: There is no limit on the number of transactions that can be made using the Mudra card. This makes it a convenient option for businesses that need to make frequent payments.
3. Wide acceptance: The Mudra card is accepted at a wide range of banks and financial institutions. This makes it easy to find a place to withdraw cash or make payments.
4. Safe and secure: The Mudra card is a safe and secure way to make payments and withdrawals. All transactions are processed through a secure network, so your personal information is never at risk.

How to Apply in Pradhan Mantri Mudra Yojana

The eligibility criteria for availing a loan under the PMMY scheme are as follows:

1. The applicant must be a Indian citizen.
2. The applicant must be above 18 years of age.
3. The applicant must have a business proposal or project report ready.
4. The applicant should not have any outstanding dues or loan defaults on their name.
5. If you meet all the eligibility criteria mentioned above, then you can proceed with your loan application under the Pradhan Mantri Mudra Yojana scheme. 
6. The next step is to fill out the online application form available on the website of your chosen bank or financial institution. 
7. Once you have submitted your form, you will be required to upload some supporting documents like your KYC documents, business proposal/project report, etc. After your application is complete, it will be processed by the bank/financial institution and you will be informed about the loan.

Procedure to Download PMMY Yojana Toll Free Number

To obtain the Pradhan Mantri Mudra Yojana (PMMY) toll free number, please follow the steps below:

1. Visit the official website
2. On the homepage, scroll down to the ‘Contact Us’ section and click on the ‘Toll Free Number’ link
3. A new page will open with the PMMY toll free number displayed prominently
4. Save this number for future reference and use it to contact the PMMY helpline in case of any queries or issues related to the scheme.

Procedure to Login to Pradhan Mantri Mudra Yojana Portal

To login to the PMMY portal, users need to first register on the portal. To do this, they need to provide their personal details, contact details, and bank account details. Once registered, users can login to the portal using their username and password.

Once logged in, users can fill out an pradhan mantri mudra yojana application form for a loan. The PMMY application form requires information such as the amount of loan required, the purpose of the loan, and personal financial details. After submitting the application form, users can track the status of their loan application on the portal.

Helpline Number

Important Downloads

Pradhan Mantri Mudra Yojana Application Form: This is the first and foremost document that you need to submit while applying for a loan under the PMMY scheme. The form can be downloaded from the official website.

FAQs

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