Information about Mudra Bank Loan Scheme – PPMY Scheme

        Mudra Bank Loan Scheme – PPMY Scheme

MUDRA LOAN SCHEME – Pradhan Mantri Mudra Yojana Scheme 2017, Steps to apply for PPMY, Application form, and interest rates.
Recently, the government has launched many schemes to help the people in need. Out of which, one such project is Mudra Loan Yojana or Pradhan Mantri Mudra Yojana. The objective of this scheme is to contribute financial assistance (by providing loans at reasonable interest rates). Loans are being offered depending on the size of business accordingly. Under this scheme, loans up to 10 Lakh rupees are being provided. The MUDRA Loans have been grouped as – Shishu Loan, Kishore Loan & Tarun Loan. Continue reading for more information regarding how to apply, procedure and other vital information.
For smooth working, all businesses should be financially secure. Established businesspeople manage all the financial issues by themselves. However, the startups or entrepreneurs need help. And, if that support comes from the government nothing can be better than that. Indian Government has introduced a Loan scheme that has been named as Pradhan Mantri Mudra Yojana (PMMY). Commonly known as Mudra Loan.
If you are interested in other important factors like Type of Loans, Interest rates being offered, and how to apply, then knowing about the Mudra Loan process is important. The article will address the same issues and helps in finding out the detailed information regarding the Mudra Loan. We have attached the official documents to download and have a look to them.

Mudra-Loan-Scheme-Complete-details-process-explained

DETAILS AND PROCESS OF MUDRA BANK LOAN SCHEME

There are many small organisations, companies and start-ups, Entrepreneurs in India. Collectively known as Micro Units. It has been noted that these Micro Units lack Financial Support. If financial aid is given, they can grow and be much better than they are right not.
MUDRA, Full form “Micro-units Development and Refinance Agency Ltd.” is an institution that has been set up by Indian Government under the leadership of PM Sh. Narendra Modi. MUDRA Bank has been created with only one goal – Fulfilling all the Funding needs of Non-Corporate Small Businesses.

Functions of MUDRA Bank

  • Preparing and launching the policy guidelines of the loan.
  • Registration and regulation of MFI (Micro Finance Institution) Entities.
  • Running a credit guarantee scheme.
  • Creating a good architecture for serving small business by providing them Loan (Financial Assistance)

PRADHAN MANTRI MUDRA YOJANA – LOAN SCHEME

All the essential responsibilities and functions of Mudra Bank will be mentioned under this unique scheme that has been launched and named as Pradhan Mantri Mudra Yojana (PMMY).
Now, the big question arises in the mind of people is that what is the eligibility criterion to be the part of Mudra Bank Loan Yojana and what is the procedure of Loan Application. Other important things are the interest rate & forms. But before proceeding to that, it is crucial to know the category of your Business and venture.

MUDRA BANK SCHEME CATEGORIES – SHISHU, KISHOR & TARUN

Micro units or small business had to be categorised to signify the growth stage, development and funding requirements. 3 groups were framed for this purpose namely “Shishu (Child Category)”, “Kishor Category” and “Tarun Category”.

Here is the explanation of each category to let you find in which type your business falls.

Shishu (Child) category – As the name resembles, this category is for the Start-ups. All those companies that have been initiated recently and looking for a loan will come in this category. An investment cover of Rs. 50,000 will be provided to all micro units under this group. Interest Rate for this Category ranges from 10 to 12 %.

Kishor Category – For the ones who have started their business since few months but need to be established yet falls under this line. A loan cover from Rs. 50,000 to 5 Lakh will be provided to units under this category. The interest rate ranges from 14% to 17%.

Tarun Category – All small firms which have been set up and established since and require some financial requirements for the betterment of the business longwill come under this category. That’s why all small units falling into this group will be eligible for a Loan Cover up to Rs. 10 Lakh. The interest rate in the Tarun category starts from 16 %.

Eligibility Criteria for Participating Banks and Financial Companies:

Scheduled Commercial Banks – All scheduled commercial Banks in public and private sector with three years of continuous profit track record, net NPAs not exceeding 3%, minimum net worth of Rs.100 crore and not less than 9% CRAR are eligible to Lend Loan.

Regional Rural Banks – All restructured RRBs having net NPA within 3% (relaxable in deserving cases), having profitable operations and not carrying any accumulated losses and CRAR >9% are eligible under Pradhan Mantri Mudra Scheme.

MFI, Small Business companies, are also likely if they fulfil the requirement.

APPLICATION FORM DOWNLOAD & OTHER DETAILS – MUDRA BANK LOAN SCHEME (PMMY)

Below is the step by step information regarding applying to the Mudra Bank Loan Scheme (PMMY) for all groups i.e. Shishu, Kishor and Tarun.

Note – All you need is to prepare a business idea before applying. You have to represent your plan of activities along with the application form.

  • Firstly, the borrower (Who wishes to take a loan) under Pradhan Mantri Mudra Yojana needs to visit the commercial or private bank nearest to the location.
  • Present your Business Idea along with the Loan Application (Forms given below) along with the filled form you need to provide identity proof, Address proof, and recent passport size photographs.
  • All formalities as per the bank instructions are to be completed by the borrower.
  • After accomplishing all the steps above, the loan will be sanctioned and will be made available to the loan seeker.

MUDRA Bank Helpline – Pradhan Mantri Mudra Yojana 

If you have any queries or doubts regarding the scheme, you can contact the helpline stated below:

Write an Email at – help@mudra.org.in

MUDRA LOAN APPLICATION FORM – PDF FILES 

PMMY Form English download
How and Where to get MUDRA loan
Eligibility criteria for PMMY Scheme

Leave a Reply

Your email address will not be published. Required fields are marked *