Details
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India. The scheme facilitates micro credit/Loan up to Rs. 10 lakhs to income generating micro enterprises engaged in the non farm sector in manufacturing, trading or service sectors including activities allied to agriculture such as poultry, dairy, beekeeping, etc. The Scheme provides financial assistance extended by Member Lending Institutions to the non-corporate, non-farm sector income generating activities of micro and small entities.
These micro and small entities comprise of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others.
The loans under Pradhan Mantri Mudra Yojana can be availed through eligible Member Lending Institutions (MLIs), which include:
- Public Sector Banks
- Private Sector Banks
- State operated cooperative banks
- Rural banks from regional sector
- Micro Finance Institution (MFI)
- Non-Banking Finance Company (NBFC)
- Small Finance Banks (SFBs)
- Other financial intermediary approved by Mudra Ltd. as member financial institutions
Interest rate
The interest rates are declared by Member Lending Institutions from time to time as per Reserve Bank of India guidelines based on which applicable interest rate is determined.
Upfront fee/Processing charges
Banks may consider charging of upfront fee as per their internal guidelines. The upfront fee/processing charges for Shishu loans (Covering loans upto Rs. 50,000/-) are waived by most Banks.
Note :
There are no agents or middleman engaged by MUDRA for availing of Mudra Loans. The borrowers are advised to keep away from persons posing as Agents/ facilitators of MUDRA/PMMY.
Benefits
The scheme has been classified under three categories as ‘SHISHU’, ‘KISHORE’ and ‘TARUN’ to signify the stage of growth / development and funding needs of the beneficiary micro unit/ entrepreneur.Shishu: Covering loans upto Rs.50,000/-.Kishore: Covering loans above Rs.50,000/- and upto Rs. 5 lakhs.Tarun: Covering loans above Rs. 5 lakhs and upto Rs. 10 lakhs.
Eligibility
Eligible borrowers
- Individuals
- Proprietary concern.
- Partnership Firm.
- Private Ltd. Company.
- Public Company.
- Any other legal forms.
Note 01:The applicant should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.
Note 02: The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity.
Note 03: The need for educational qualification, if any, is assessed based on the nature of the proposed activity and its requirement.