Pradhan Mantri Mudra Yojana (PMMY)

MAY 12, 2024
Pradhan Mantri Mudra Yojana (PMMY)

The PMMY scheme launched in 2015 aims to provide MUDRA Loans to small and micro enterprises through various commercial banks, RRBs, SFBs, NBFCs, and Cooperative Banks.

Description

Who is it for?

Benefits

To loan funds in the form of MUDRA for promoting MSMEs

For small-scale businesses & MSMEs

Business loans ranging from Rs.50,000 to Rs.10 lakh can be applied under this scheme, which is divided into three categories: Sishu, Kishor, and Tarun.

The loan range may vary depending on growth, development, and funding needs. The MUDRA loan can be categorized into

  • Sishu - Up to Rs. 50,000
  • Kishore - Rs. 50,000 to 5 Lakh
  • Tarun - Rs. 5 Lakh to 10 Lakh
The essentials of US Incorporations - documents, eligibility and process.

Eligibility

  • Must have business plans for service sector activities or trading or manufacturing activities.
  • In the case of an individual applicant, the age range must be between 18 and 65 years.
  • Must be a non-corporate and non-farm small and micro-enterprise.

Documents Required for the PMMY Scheme

  • Proof of identity 
    Self-attested copy of Voter's ID card/Driving Licence/PAN Card/AadhaarCard/Passport/Photo IDs issued by Govt. authority etc.
  • Proof of Residence
    Recent telephone bill/electricity bill/property tax receipt (not older than 2 months) / Voter's ID card / Aadhaar Card / Passport of Individual / Proprietor/Partners/Bank passbook or latest account statement duly attested by Bank officials/Domicile certificate/certificate issued by Govt. authority/Local panchayat/Municipality etc.
  • Applicant's Recent Photograph (2 copies) 6 months or older.
  • Proof of Identity/Address of the Business
    Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity, and address of the business unit, if any

Other relevant documents, like proof of category, quotation, etc., are also required during the application process.

Application procedure

If you are eligible, applying for a MUDRA loan is relatively easy and can be done both online & offline.

Online

  • Visit the official website of the PMMY-authorized financial institution from which you wish to avail of the Mudra loan.
  • Download the relevant form depending on the type of loan (Sishu, Kishore, and Tarun).
  • Fill out all the personal and business details and then “Submit” the form.
  • Once received, the application form is verified and processed accordingly. Following the verification, the loan amount is approved and disbursed.
  • The loan amount can be withdrawn with the help of a MUDRA card issued after the loan approval.
Application procedure

Offline

  • Visit a PMMY-authorized bank or NBFC of your choice.
  • Fill out the MUDRA loan application form with the required details.
  • Submit the application form with a self-written business plan and other documents to substantiate those details.
  • After successful document verification, the loan will get approved, and the desired amount will be credited.
  • Must have the required infrastructure and targeted acceleration programs.

Benefits of the PMMY Scheme

  • MUDRA loans can be taken for small amounts at affordable interest rates; also, the credit guarantee is borne by the Government.
  • This scheme could be availed without any collateral or security.
  • The Mudra loan scheme in collaboration with the “Make In India” campaign, helps in fostering innovation, facilitating investment, and improving skill development.
  • Women Borrowers can avail this scheme with discounted interest rates.
  • Relief of up to 1500 Crore will be provided to the Borrowers as Interest Subsidy under the Mudra Shishu Category.

Achievements Under PMMY Scheme

Here’s a table to highlight the achievements under the PMMY scheme in the last 3 years.

No. of PMMY loans sanctioned

Amount sanctioned

FY 23-24

66777013

INR 541012.86 Crores

FY 22-23

62310598

INR 456537. 98 Crores

FY 21-22

53795526

INR 339110.35 Crores

Frequently Asked Questions

Who is eligible to apply for the PMMY Scheme?

Individuals, including entrepreneurs, micro-enterprises, and small businesses in the non-corporate, non-farm sector, are eligible to apply for loans under the PMMY Scheme.

Is there any collateral required for loans under the PMMY Scheme?

Loans under the PMMY Scheme are collateral-free, meaning borrowers do not need to provide any security or collateral to avail of the loans, making them accessible to a wider segment of the population.

Can existing businesses apply for loans under the PMMY Scheme, or is it only for new startups?

The PMMY Scheme is open to both existing businesses and new startups. As long as the business falls under the micro-enterprise or small business category and meets the eligibility criteria, it can apply for a loan under the scheme.

What is the role of the Micro Units Development and Refinance Agency (MUDRA) in implementing the PMMY Scheme?

The Micro Units Development and Refinance Agency (MUDRA) acts as the nodal agency for the implementation of the PMMY Scheme. It works in collaboration with various financial institutions to ensure the effective disbursal of loans and monitoring of the scheme's progress.

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Dhaval Trivedi
Basanth Verma
shopeg.in
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@foxsellapp
#razorpayrize #rizeincorporation
Dhaval Trivedi
Prakhar Shrivastava
foxsell.app
We would recommend Razorpay Rize incorporation services to any founder without a second doubt. The process was beyond efficient and show's razorpay founder's commitment and vision to truly help entrepreneur's and early stage startups to get them incorporated with ease. If you wanna get incorporated, pick them. Thanks for the help Razorpay.

#entrepreneur #tbsmagazine #rize #razorpay #feedback
Dhaval Trivedi
TBS Magazine
Hey, Guys!
We just got incorporated yesterday.
Thanks to Rize team for all the Support.
It was a wonderful experience.
CHEERS 🥂
#entrepreneur #tbsmagazine #rize #razorpay #feedback
Dhaval Trivedi
Nayan Mishra
https://zillout.com/