Launched by Prime Minister Narendra Modi in April 2015, Pradhan Mantri MUDRA Yojana, or PMMY, is a scheme that aims to offer loans of up to Rs 10 lakh to non-farm small/micro and non-corporate enterprises in a bid to support their businesses and encourage entrepreneurship among the underprivileged sections of the society. These loans, also classified as MUDRA loans are provided by the Regional Rural banks (RRBs), Commercial Banks, Small Finance Banks, MFIs, Cooperative Banks and NBFCs. This initiative is also aligned with the government’s Skill India program which emphasises creating employment opportunities for the youth.
Those interested in the scheme can apply online through the PMMY portal. Here’s are the important details about the PMMY scheme:
The PMMY offers three types of loans, each with its own eligibility criteria and loan amount:
- Shishu loan: Up to Rs. 50,000 for new or existing micro enterprises.
- Kishore loan: Rs. 50,001 to Rs. 5 lakh for micro enterprises that have been in operation for at least two years.
- Tarun loan: Rs. 5,00,001 to Rs. 10 lakh for small enterprises that have been in operation for at least three years.
The borrower must meet the following eligibility criteria to be eligible for a PMMY loan:
- Be a citizen of India.
- Be in the age group of 18 to 65 years (at the time of final EMI repayment).
- Have a valid PAN card.
- Have a business plan.
- Have a good credit history (if applicable).
The required documents for a PMMY loan vary depending on the type of loan and the lending institution. However, some common documents that may be required include:
- Identity proof (such as a PAN card, Aadhaar card, or passport).
- Address proof (such as a voter ID card, driving license, or utility bill).
- Proof of income (such as a bank statement or tax return).
- Business plan.
The interest rates on PMMY loans are fixed by the lending institution. However, the rates are generally lower than the market rates for other types of loans. The repayment period for PMMY loans is also flexible and can be up to 5 years.
To apply for a PMMY loan, you can visit the nearest branch of a lending institution that offers PMMY loans. You can also apply online through the Udyamimitra portal.
The PMMY is a great way to get funding for your small business. The scheme offers a variety of loans for different types of businesses and has relaxed eligibility criteria. If you are looking for a loan to start or grow your small business, the PMMY is a good option to consider.
Here are some additional key details about the PMMY:
- The loans are guaranteed by the government, which means that the lending institution will not lose money if the borrower defaults on the loan.
- The loans are processed quickly and easily.
- The borrowers are provided with training and support to help them succeed in their businesses.
If you are interested in learning more about the PMMY, you can visit the official website at www.mudra.org.in.