Pradhan Mantri Mudra Yojana -Benefits for people

 Introduction-                                                                                                                  

The Government of India's Pradhan Mantri Mudra Yojana (PMMY) program is its flagship program. The program enables income-generating micro-enterprises working in the non-farm sector of manufacturing, processing, commerce, or service to access microcredit or loans of up to Rs. 10 lahks. MUDRA encourages Financial Intermediaries to lend money to micro and small businesses that generate income outside of the corporate and agricultural sectors.

 

 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.

Rate of interest

Interest rates are assessed by the bank's policy decision. However, the interest rate assessed to final debtors must be fair.

Initial payment and processing fees

In accordance with their own policies, banks may think about implementing upfront fees. Most banks eliminate the upfront fee or processing charges for Shishu loans.

AVAILABLE

Public Sector Banks

Private Sector Banks

State-operated cooperative banks

Rural banks from the regional sector

Categories

To reflect the level of growth/development and the finance requirements of the recipient micro unit/entrepreneur, the benefits under the scheme have been divided into three categories: 'SHISHU', 'KISHOR', and 'TARUN'.

Shishu: Paying interest on loans up to Rs. 50,000.

Kishor: Dealing with loans between Rs. 50,001 and Rs. 5,00,000

Tarun: Covering loans between 5,000 and 100,000 rupees.

Eligibility

Suitable borrowers People

a private matter.

The firm of partnerships.

Ltd. Private Company.

Public Corporation.

The applicant should not have a history of bank or financial institution defaults and should have a positive credit history. Individual borrowers might need to have the requisite qualifications to carry out the intended activity. Based on the proposed activity's nature and requirements, the need for educational qualification, if any, must be determined.

 

Online application process

The following conditions must be met to enroll:

ID Documentation

The Address Is

a passport-sized photo

Candidate Signature

Identity documentation and business addresses

Visit the PM MUDRA website at https://www.mudra.org.inthen we choose the Udyamitra portal (https://udyamimitra.in/).

Click "Apply Now" next to Mudra Loan.

Choose from the following:  Existing business owners, new business owners, and self-employed individuals

Then, enter the applicant's name, email address, and mobile number to generate an OTP.

 

After Registration 

 

Fill in your personal and professional information. If assistance is needed for writing project proposals or other tasks, choose hand-holding agencies; otherwise, select "Loan Application Center" to start an application.

Choose the type of loan you need, such as Mudra Sishu, Mudra Kishore, Mudra Tarun, etc. After that, the applicant must fill out the business information form, choosing an industry type such as manufacturing, service, trading, or agriculture and associated industries.

Complete other information, such as the director's details, existing or proposed credit facilities, future projections, and the preferred landowner.

Attached are all necessary documents, including identification and address verifications, as well as the applicant's photo and signature.

Following application submission, an application number is generated that must be recorded for future use.

Documentation Needed For A Sishu Loan

Self-attested copies of voter identification cards, driver's licenses, PAN cards, Aadhaar cards, passports, and other government-issued photo identification are acceptable as proof of identity.

 Voter's ID card, Aadhar card, passport of the individual, proprietor, or partner, bank passbook or most recent account statement duly attested by bank officials, domicile certificate, certificate issued by government authority, local panchayat, municipality, etc. are all acceptable forms of proof of residence.

Recent (2 copies) photographs of the applicant that are no older than 6 months.

Request for a quote on machinery or other goods.

Request for a quote on machinery or other goods.Name of Supplier, information on the machinery, and/or the cost of the things you plan to buy. Copies of the pertinent licenses, registration certificates, and other documents about the ownership, identity, and address of the business unit, if any, are acceptable forms of identification and proof of address.

 

Kishore and Tarun Loan's sake

Identity proof includes a self-certified copy of a voter identification card, driver's license, PAN card, Aadhar card, or passport.2) Recent utility bills, property tax receipts (not older than two months), voter identification cards, Aadhar cards, and passports of the proprietor, partners, and directors are acceptable forms of proof of residency.

Evidence of SC/ST/OBC/minority. Copies of pertinent licenses, registration certificates, and other papers about the ownership, identity, and address of the business unit are acceptable forms of proof of the identity and address of the business enterprise. The applicant should not have a history of financial institutions or bank defaults. Accounts statement from the current banker, if any, for the previous six months.Balance sheets from the units' most recent two years, along with income tax returns, sales tax returns, etc. (Applicable for all instances starting at Rs. 2 Lacs and beyond).projected balance statements for the period of the loan in cases of term loans and for the year in cases of working capital limits (applicable in all cases from Rs. 2 Lacs and above).sales made up until the application deadline during the current fiscal year.

Report on the proposed project that includes information on its technical and financial viability.the company's memorandum and articles of association, the partners' partnership deed, etc. If there is no third-party guarantee, the borrower's asset and liability statement, which includes the directors and partners, may be requested to determine net value.                                                                                        FAQS-

Who are eligible for PMMY?

Any individual including women, proprietary concern, partnership firm, private limited company, or any other entity are eligible applicants under PMMY loans, whose loan requirement is up to 10 lakh.

What is the limit of PMMY?

Shishu: covering loans up to 50,000/- Kishor: covering loans above 50,000/- and up to 5 lakh. Tarun: covering loans above 5 lahks and up to 10 lahks.

What is the PMMY scheme available for?

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India. The scheme facilitates micro credit/Loans up to Rs. 10 lacks to income-generating micro-enterprises engaged in the nonfarm sector in manufacturing, processing, trading, or service sector.

Is income proof required for a MUDRA loan?

Duly filled Mudra form application in PDF format along with passport-size photographs. KYC documents for the applicant. Income proof: bank statement for the past 12 months.

Who launched PMMY?

The Pradhan Mantri MUDRA Yojana (PMMY) was launched on 8th April 2015 by Prime Minister Shri Narendra Modi to facilitate easy collateral-free micro-credit of up to ₹10 lacks to non-corporate, non-farm small and micro-entrepreneurs for income-generating activities.

What happens if the MUDRA loan is not paid?

Legal action against mudra loan defaulters can be taken by the government. The borrower may be asked to pay back the full amount of their loan plus interest and penalties. The government also has the right to file a civil suit in court and pursue criminal proceedings against defaulters.

Is a PAN card mandatory for a MUDRA loan?

No. A PAN card is not a requisite to apply for a MUDRA loan. The main objective of a MUDRA loan is to provide financial support to new businesses and new entrepreneurs.