Pradhan Mantri Mudra Yojana is a special scheme set up by the Government of India through an institution named Micro Units Development & Refinance Agency Limited (MUDRA) in order to provide financing aid through loans to the non-corporate non-farm sector income generating activities of micro and small entities (subject to those enterprises with credit needs below INR 10 lakhs).
The Pradhan Mantri Mudra Yojana (PMMY) has three facilities or options available for catering to enterprises at different stages of growth and financing needs. These options are Shishu, Kishore and Tarun.
On top of the basic criteria set by the government, lending institutions will have their own norms and guidelines for providing loans under the scheme. As such, you need to read the terms and conditions of your particular lender to ascertain the extra eligibility conditions that they might have put in place. You can check sample requirements for the Mudra Loan below.
The loans availed as per this scheme can be used for multiple purposes, like vehicle loans for automobiles meant for commercial purposes, business instalment loans that can aid in working capital financing / purchase of plant and machinery / renovating the infrastructure and/or business loans group and rural business credit.
A versatile loan as this has the following criteria to be met in order for the applicant to avail the loan
Based on the different options available under the scheme, differing rates of interest and repayment tenures are available for loans availed under Pradhan Mantri Mudra Yojana (Mudra Bank Loan). Aimed to facilitate growth and prosperity of businesses and enterprises in the micro segment, these loans can be very helpful to ease any kind of financial crunches.
The Mudra Scheme is applicable for Indian citizens who are investing in non-farm income activities like service, trading, processing and manufacturing with credit needs up to Rs.10 lakhs can apply for loans under the Mudra Scheme through any of the recognized intermediaries. These intermediaries include Public and Private Sector banks, NBFCs, MFIs, RRBs and other financial institutions.
No, there is no directive from the central government regarding submission of ITRs. However, the lending institution may ask you for this under its own rules and regulations.
Yes, the loan amount may be requested on the basis of your SB account. The terms of the loan will be decided by the lending authority which includes amount of loan, interest rate and repayment tenure. The lending authority takes into account multiple factors before deciding the terms of the loan for each case.
All Indian citizens including women, men, proprietary concern, private limited company, partnership firms and other such entities can apply for Mudra Loan.
Yes, the scheme doesnt differentiate between applicants who fulfil the basic criteria and is applicable for all Indian citizens irrespective of region, religion, physical prowess, economic background etc.
There is no direction under the scheme for providing PAN card details. However, the lending institution may ask you to fulfil KYC norms which may ask for PAN details.
Documentation requirements are decided by the lending intermediary under RBI guidelines. You may approach any of the lenders to find what documents they are looking for.
Yes, the Mudra loan can be claimed through NBFCs, banks or MFIs. Service, trading and manufacturing units are included under the Mudra Scheme, with rational pricing of products to help their needs.
Yes, you can get loans up to Rs.10 lakhs as per the three distinct bands namely Shishu, Kishor and Tarun. If your business requirements fall under the broad ambit of Mudra Scheme, you can approach any of the intermediaries for a loan under the scheme.
There are no security or collateral requirements for Mudra Loans, essentially making them unsecured loans.
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