PM MUDRA Loan has been working since 2015 to give loan facilities in order to make changes in different industries. This scheme has been launched by the honorable prime minister Narendra Modi. Modi’s government has been taking continually actions to help the citizens as well as industrial people. In this post, we will explore many things that are required to know such as required documents, benefits, eligibility criteria, and three products of PMMY.
Pradhan Mantri Mudra Loan Yojana
As we know how much struggle is needed to be done by one to get a loan. Any bank can not able to give a loan without full fill their requirement. If you are able to take a loan, banks demand a high-interest rate that is not acceptable for a person. Under PMMY, there are three categories of getting loans. Shishu, Kishor, and Tarun. We will discuss the difference between them. non-corporate, non-farm small/micro enterprises can get loans up to Rs 10 lakh under Pradhan Mantri Mudra Yojna.
The amount of loan will be given by various banks such as commercial banks, MFIs, NBFCs, Small finance banks, and RRBs. It is good to have so many banks participating in PMMY. There are two ways to approach a loan. First, visit any bank that is working under PMMY or you can directly apply through an online portal. Three Categories of loans will depend on your growth, development, and funding requirements.
Products of PM Mudra Yojna
As we know that there are three products under Pradhan Mantri Mudra Yojna called SHISHU’, ‘KISHOR’ and ‘TARUN. There are some benefits of PMMY. There is a limit for loans mentioned below.
- Shishu Loan Amount:- This is the first loan that is provided at the initial level. This stage of the Entrepreneur is very crucial. You can get a loan under Shishu loan up to Rs 50000. Most businesses collapse due to not having money at the start. It is a good amount of money to boost business.
- Kishor Loan Amount:- Kishor is a second phase after the Shishu loan. You can get this loan if you have started your business or want additional funding to boost your business. The payable amount under Kishor is up to Rs 5,00,000.
- Tarun Loan Amount:- Under a Tarun loan, there is the highest loan amount you will ever get. There are more required eligibility criteria to get this loan amount. If you are eligible and full fill their requirement then you will be able to get a Rs 10,00,000 loan.
Eligibility Criteria For Pradhan Mantri Mudra Yojana
There are simple and easily understandable eligibility criteria marked by the government. Below I have mentioned all the eligibility criteria for getting a loan amount.
- First, you must be an Indian citizen.
- Your business must be apart from farming.
- You should be in manufacturing, processing, service sector, trading whose credit need is up to Rs 10 lakh.
- Involved agency’s terms and conditions to be followed by the borrower to get loan amount under PM Mudra Yojna.
- Your business should be based on the following as
- Small manufacturing enterprise
- Artisans
- Fruit and Vegetable vendors
- Shopkeepers
Required Documents for Mudra Loan
- passport-sized photographs
- Passport, voter ID card, driving license, Aadhaar card, utility bills (water or electricity), PAN card for KYC.
- If you belong to SC/ST or another special category then give your certificate.
- your business income Proof and sources of income.
- The address proof of your business
- A proof of establishment of your business (if in case you are already running an enterprise)
- Your Income Tax Returns (ITR) for the past 2 years, if applicable
- Your bank account statements going back at least 12 months
- Any other document requested by the bank officials
Benefits Of Pradhan Mantri Mudra Yojna(PMMY)
- Under this scheme, the government is giving credit facilities to micro and small enterprises.
- Security and collateral are required to take a loan but there is no need under PMMY.
- There are no processing charges.
- For fund and non-fund based on your requirement.
- There is no barrier to using the loan amounts. you can use your loan amount as per your need.
- It also has no minimum loan amount.
PM Mudra Loan Terms And Conditions
- You can avail of the loan amount up to 10 lakh. It is the maximum limit of the loan.
- Term / Demand – Maximum up to 84 months with suitable moratorium subject to annual review
- Working Capital – For 12 months subject to annual review
- Margin will depend on the bank’s guidelines.
- There is no processing fee.
- You no need to give security collateral.
Pradhan Mantri Mudra Yojana Apply Online
The process of applying is very easy. But you must have to fill full all the conditions. You must have documents and your plan that tell about your business. there are two ways to apply for mudra yojna. The first way is to visit the authorized bank and fill the application either the Shishi, Kishore, or Tarun as per your need. Here are the steps to apply for PM Mudra Yojna 2023.
- PMMY authorized financial institution will help you to apply for a mudra loan.
- A new page will open before you where you may see download buttons.
- Then you have to click on the download button on Shishu, Tarun, or Kishor.
- Then you have to fill the form by giving various details such as name, date of birth, business address education qualifications, etc.
- After filling out the form, you have to submit this form to the authorized financial institute. While submitting the form, make ensure that you have your original documents in your hand.
Offline Apply For Mudra Loan
If you are facing problems with the online mode or are not comfortable with the online mode then you may go with the offline procedure to get a loan under Mudra Yojna. Here are the steps to apply in offline mode.
- There are many banks are providing loans under PM Mudra yojana. These banks are called authorized banks. You have to visit any authorized bank.
- You must have your business presentation or plan.
- Then fill out the application form for the mudra loan.
- Attach the required documents with the application form.
- Bank will verify your application. Once your application process is done then your desired amount will be credited to your bank account.