The Government of India’s Pradhan Mantri Mudra Yojana (PMMY) is one of its most prominent self-employment programs. The program enables income-generating microenterprises in the non-farm manufacturing, processing, commerce, or service sector to access microcredit or loans of up to Rs. 10 lakh. MUDRA assists financial intermediaries in providing loans to micro and small entities’ non-corporate, non-farm sector income-generating activities.

Pradhan Mantri Mudra Yojana (PMMY)

Millions of proprietorship and partnership businesses operating in rural and urban areas as small manufacturing units, service sector units, shopkeepers, fruit and vegetable vendors, truck drivers, food-service operators, repair shops, machine operators, small industries, artisans, food processors, and others make up these micro and small entities.

Candidates can avail loans under the Pradhan Mantri Mudra Yojana (PMMY) scheme only through banks and lending institutions, which include:

• Public Sector Banks
• Private Sector Banks
• State-operated cooperative banks
• Rural banks from the regional sector
• Institutions offering microfinance.
• Financial companies other than banks

Interest rate

The bank’s policy decision assesses interest rates. However, the interest rate set to final debtors must be fair.

Upfront fee/Processing charges

By their internal policies, banks may impose an upfront fee. Most banks eliminate the upfront cost or processing charges for Shishu loans (covering loans up to Rs. 50,000/-).

Note:

To obtain Mudra Loans, MUDRA does not use any agents or intermediaries. The debtors must stay away from anyone who identifies themselves as a MUDRA/PMMY agent or facilitator.

Benefits of Pradhan Mantri Mudra Yojana (PMMY)

The three kinds of rewards under the scheme—”SHISHU,” “KISHOR,” and “TARUN”—reflect the beneficiary microunits’ or entrepreneurs’ demands for money at various stages of development.

• Shishu: Covering loans up to Rs. 50,000/-
• Kishor: Covering loans from Rs. 50,001 to Rs. 5,00,000/-
• Tarun: Covering loans from Rs. 5,00,001 to Rs. 10,00,000/-

Eligibility for Pradhan Mantri Mudra Yojana (PMMY) 

• Individuals
• Proprietary concern.
• Partnership Firm.
• Private Ltd. Company.
• Public Company.
• Any other legal forms.

The applicant of Pradhan Mantri Mudra Yojana (PMMY) should not have a history of bank or financial institution defaults but a positive credit history. Individual borrowers must have the qualifications to carry out the intended activity. The need for educational qualification, if any, must be determined based on the proposed activity’s nature and requirements.

Application Process for Pradhan Mantri Mudra Yojana (PMMY)

The following are the prerequisites for the enrolment process:

• ID Proof
• Address Proof
• Passport size photograph
• Applicant Signature
• Proof of Identity / Address of Business Enterprises

Go to PM MUDRA’s official website. After that, we select the Udyamitra portal

Click on Mudra loan “Apply Now.”

Select one of the following: New entrepreneur/ Existing Entrepreneur/Self-employed professional.

Then, Fill in the applicant’s name, email, and Mobile number and Generate OTP.

After Successful Registration

• Fill in Personal Details and Professional Details
• If any candidate requires any assistance for creating project proposals, etc., use hand-holding agencies. If not, apply right away by clicking “Loan Application Centre.”
• Select the category of loan required – Mudra Sishu / Mudra Kishore/ Mudra Tarun, etc.
• The applicant must then fill in the Business Information like business name, Business Activity, etc., and select Industry types like Manufacturing, service, Trading, or Agricultural allies.
• Fill in Other Information like Fill the director Details, Banking/ Credit facilities Existing, Credit facilities Proposed, Future estimates, and Preferred Lander.
• Attached are all required Documents: ID proof, address proof, Applicant photo, Applicant Signature, Proof of Identity/ Address of Business Enterprise, etc.
• Once the application is submitted, an Application Number gets generated, which needs to be kept for Future Reference.

Documents Required for Pradhan Mantri Mudra Yojana (PMMY)

For Sishu Loan

• Proof of identity – Self-attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aadhaar Card / Passport / Photo ID issued by Govt. authority, etc.
• A recent utility bill/ property tax receipt (not older than two months)/ voter’s ID card/ Aadhar card. Passport of the owner/ partner/ proprietor, bank passbook/ the most recent account statement properly attested by bank officials, domicile certificate, or any other document issued by a government agency, local panchayat, municipality, etc.
• Applicant’s recent Photograph (2 copies) at a maximum of SIX months old is required.
• Request for a quote on machinery or other goods.
• Name of Supplier/details of machinery/price of machinery and items to be purchased.
• Proof of Identity / Address of the Business Enterprise – Copies of relevant Licences / Registration Certificates / Other Documents about the ownership, identity of the address of the business unit, if any
• Proof of category like SC / ST / OBC / Minority, etc.

For Kishore and Tarun Loan

• Proof of identity – Self-certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
• 2) Proof of Residence – Recent telephone bill, electricity bill, property tax receipt (not older than two months), Voter’s ID card, Aadhar Card, and Proprietor/Partners/Directors passport.
• Proof of SC/ST/OBC/Minority.
• Copies of pertinent licences, registration certificates, or other documents proving ownership, identity, and address of the commercial enterprise are acceptable forms of proof.
• The applicant shouldn’t have a history of financial defaults at any banks or other institutions.
• If applicable, a statement of accounts (for the past six months) from the current banker
• Balance papers from the units’ most recent two years, income tax returns, sales tax returns, etc. (Applicable in all situations starting at Rs. 2 Lacs and above).
• Projected balance sheets are necessary for one year in case of working capital limits and for the loan period in case of a term loan (Applicable for all patients from Rs.2 Lacs and above).
• Details of Sales achieved during the current financial year up to the application submission date are necessary.
• Project report (for the proposed project) containing details of technical & economic viability.
• Memorandum and articles of association of the company/Partnership Deed of Partners, etc.
• Without a third-party guarantee, the borrower’s Asset and liability statement, including Directors and partners, may be sought to know the net worth.

How to Apply for Pradhan Mantri Mudra Yojana (PMMY)

• Eligible beneficiaries can apply for a Mudra Loan online on the Udyamimitra Portal.
• For assistance, call the toll-free number 1800 180 1111/1800 11 0001

Who to Contact for Pradhan Mantri Mudra Yojana (PMMY)

Candidates can avail The loans under the Pradhan Mantri Mudra Yojana (PMMY) only through banks and lending institutions, which include:

• Public Sector Banks
• Private Sector Banks
• State-operated cooperative banks
• Rural banks from the regional sector
• Institutions offering microfinance
• Financial companies other than banks

Also Check: 

Details of all central government schemes for self-employment and job creation.

All India vacancy details for 10th, 12th, ITI, Graduates, Technical, Medical, Law and all other graduates, PG and PhD’s.

You can check and download syllabus and old question papers for various govt job exams.