Mudra Loan Yojana is a scheme, which was launched by the central government of India to support for the development of the micro-enterprise sector. The primary purpose of the PM Mudra Loan is to help the small scale business, which doesn’t have access to the formal channel of borrowing. Now, more than 90% of the non-corporate small business sectors do not have to access the sources of finance.
So, the scheme refinances support to the financial institutions, which include in public, private, regional, urban, and state banks and also with the Micro Finance Institution and nonbanking finance companies. So here we have described the Mudra Loan Yojana details for the citizen of India.
Pradhan Mantri Mudra Loan Yojana
The central government of India has launched a scheme known as “Mudra Loan Yojana” for development of the small business and to support the entrepreneurs. Through this Pradhan Mantri Mudra Loan Yojana, the candidate can take loans and start their new business, or they can invest the money to improve their business.
The primary purpose of the scheme is easy lending for self-employment and to create employment through small enterprises. The government thought the citizen would motivate for self-employment on a large scale if they get easy loans. It will also improve to create employment opportunities in a large number.
The Mudra Loan Yojana always focuses on women. Through this Mudra Loan Yojana Scheme, the housewife or the common ladies can start their business in their area. They can quickly get the loan from their nearest bank sectors. The full name of the Mudra Loan Yojana is “Micro Unit Development Refinance Agency” scheme, which was launched by our honourable Prime Minister.
The interested candidate can apply for this Pradhan Mantri Mudra Loan Yojana through offline and online. The government of India has also launched the Mudra Loan Yojana website for the citizens. Through the website, the applicant can directly apply for the scheme.
Mudra Loan Yojana Application Form
The Pradhan Mantri Yojana has launched to help the Indian citizen. Through the scheme, the unemployment ratio is decreasing. The economic condition of India is now improving because of this Pradhan Mantri Loan Yojana. Interested people can apply for the PM Mudra Yojana through offline and online.
Both ways are accessible and available for the candidates. Here we have shared the procedures for applying. You can check the process before applying for the Pradhan Mantri Yojana. Also, you can check the eligibility criteria, needed documents, details, and other information about the Pradhan Mantri Mudra Yojana.
Pradhan Mantri Yojana Details
The Pradhan Mantri Mudra Loan Yojana is one of the best schemes in India. Because of this scheme, people are getting interested in starting their own business. So, it helps to improve the financial condition of the family and as well as the growth of India.
|Scheme Name||Pradhan Mantri Mudra Loan Yojana|
|Launched||18th April 2015|
|Announced By||Government of India|
|Aim||Helps for start small enterprises|
|Apply||Offline and Online|
Types of Categories In PM Mudra Loan Yojana Scheme
The Pradhan Mantri Loan has been classified into three categories based on funding requirements and also depends on the amount of loan for which the applied candidate id eligible. The three types are:
- Shishu Category
Shishu is the first category in Mudra Loan Yojana, which suits for micro-units or small business owners. Under this category, the candidate can apply for the loan up to Rs. 50,000/-. The Shishu category targets a small start-up, where the owner needs a small capital to get started their business. The applied candidate must present their business ideas in front of bank authorities when they are applying for the Mudra Loan.
- Kishor Category
Under Kishor category, the candidate wants to establish their business as a viable enterprise. The candidate can get a loan from Rs.50, 000/- to Rs. 5 Lakhs under this scheme. The owner takes this loan for strengthening their foundation. For this loan, the application procedure is a slight variation among different banks. The owner must fill the application form and submit the relevant documents, which show the current position of the enterprise.
- Tarun Category
The third loan category is Tarun category. For the expansion of their business, the owner applies for more capital through the Tarun category. Under this category, the owner will get mudra loan up to Rs. 10 Lakhs.
Pradhan Mantri Mudra Loan Yojana Benefits
The Pradhan Mantri Mudra Loan Yojana is giving so many benefits to the citizen of India. Through the scheme, the people are getting employed. Here we have provided some of the benefits of the Mudra Loan Yojana scheme.
- Under the Mudra Loan Yojana, there is no minimum loan amount of the candidate
- For availing the scheme, no security or collateral required
- There are no processing charges for the Mudra Loan
- Because of the Mudra Loan Yojana, the unemployment ratio starts decreasing
- The candidate can get the loan for starts their business
- Also, for expanse the business, the candidate can apply for more capital through the Pradhan Mantri Mudra Loan
- The scheme is very beneficiary for the women too.
- Women can start their business through this scheme
- The Mudra Loan Interest Rate is very low for the candidate
Mudra Loan Yojana Eligibility
The interested candidate can apply for the Pradhan Mantri Yojana to start their small business. Before applying, they have to look at all the eligibilities. Without satisfying the Mudra Loan Yojana eligibility, they can’t apply for the scheme. The eligibility conditions
- The candidate must be an Indian citizen
- An applicant doesn’t be a government of private-sector employee
- The mudra loan can be available for the Business owner, shopkeepers, startup entrepreneur, etc.
- For sanction, the loan, the candidate has to present their business ideas in concerned Bank
- For more capital, the candidate has to submit all the business-related documents in the bank
- The candidate must have their bank account in which they apply for the scheme
- The scheme helps the small business develop and grow further
- Mudra Loan scheme provides SC/ST lending preference
- The scheme is assisting lower-income groups for building and expanding their business
Documents Required For Mudra Loan Yojana Scheme
To get the Pradhan Mantri Mudra Loan Yojana (PMMY) sanctioned, the candidate has to submit some certain documents along with the application form. The documents are;
- Candidate’s Residence Certificate
- Bank account details
- An applicant’s Identity Proof (Aadhaar Card, Voter ID, PAN Card, etc.)
- Caste certificate
- All the business documents
- Identity, Address and Licenses proof of the enterprise
- Machinery purchase proof
- The candidate’s passport size photo
PM Mudra Loan Repayment Period
The central government is giving the mudra loan to the people to start their business. After receiving the loan, the candidate has to repay the amount through EMIs. The government provides five years to repay the loan. Between the repayment period, the candidate has to clear loan amount to the lender bank in the form of EMIs.
If the owner isn’t able to repay the amount, then the bank will charge the fines. So, before the period, the candidate has to refund the mudra loan amount. The instalment rates are quite low for the borrowers, which has set by the government. The Pradhan Mantri Loan Yojana can grow and develop the business without adding much stress and hassle.
PM Mudra Loan Interest Rate
Under the Mudra Loan Yojana, 29 banks are present. The Mudra Loan interest rate is different in different banks. From these 29 banks, the candidate can take the mudra loan to start their business. The candidate can get the ideas about the mudra loan interest rate, processing fee, loan amount, and tenure from the below table.
|Bank Names||Interest Rate||Processing Fee||PMMY Amount||Time|
|HDFC Bank||10.99% – 20.70%||Up to 1.5%||Max. Rs. 15 Lakhs||1 – 5 years|
|ICICI Bank||10.99% – 17.99%||2.25%||Max. Rs. 20 Lakhs||1 – 5 years|
|Oriental Bank of Commerce||10.65% – 11.65%||0.5%||Max. Rs. 50,000/- to Rs. 10 Lakhs||1 – 5 Years|
Mudra Card for PMMY
The Mudra card is an original product which has launched by the Indian government. The card provides the capital facilities as cash credit management. The card is one type of debit card, which has issued against the Mudra Loan account for working on capital portion of Mudra loan. People can use this mudra card across all over India for withdrawal the cash from ATMs. And they can also make payment through any “point of sale” machines.
How to Apply Mudra Loan Yojana?
The entrepreneur can apply for the Pradhan Mantri Loan Yojana scheme through directly banks or can apply through the mudra loan yojana website. The application procedure is different for offline and online mode. If the candidate wants to submit their application form through the bank, then they have to visit the bank and follow the procedure to apply. For help the interested candidate, we have shared the offline and online process.
Apply Mudra Loan Yojana In Bank
Through 29 banks, the applicant can apply for the PMMY scheme. To apply for this scheme, the candidate visits any one of these banks and follow the given steps.
- Go to the nearest commercial or private bank
- Present your planned business ideas
- Take the PMMY application form from the bank
- Fill the application form with correct details
- Attach the documents with the application form
- Complete the other formalities, which will instruct by the bank
- Submit additional documents for verify
PM Mudra Loan Yojana Apply Online
Interested candidate can apply for the Mudra loan Yojana by the official website. An applicant has to fill the application form in any one category. Under these 29 banks website, the candidate can apply for the loan. Follow the procedure to receive the loans.
- Go to any official banks website
- Download the PMMY application form
- Fill the application form correctly
- Complete the bank formalities
- Attach the documents with the application form
- Submit the application form in the bank website
- Once the bank verifies the application form, the loan will be sanction for the candidate
Pradhan Mantri Yojana Helpline Number
- Pradhan Mantri Yojana Address – Registered and Corporate Office, Swavalamban Bhavan, C- 11, Block – G, Bandra East, Mumbai – 4000051
- Pradhan Mantri Yojana Email id – [email protected]
- Pradhan Mantri Mudra Loan Yojana contact Link – Click Here
About Mudra Loan Yojana Scheme
What is Mudra Loan Yojana?
Pradhan Mantri Mudra Loan Yojana (PMMY) is a scheme that was launched by the Prime Minister of India on April 2015. Through the scheme, the people will get the loans up to 10 Lakhs to start their business.
Who is eligible for the Pradhan Mantri Yojana?
The candidate, who runs the small business enterprise, is eligible for the Mudra Loan Yojana. The loan has three different categories, those are, Shishu, Kishor, and Tarun.
What is the age limit for the Mudra Loan Yojana?
The candidate from 23 years to 28 years age can apply for the Mudra Loan Yojana. They can apply through banks or the official website.
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