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  • SBI Pradhan Mantri Mudra Yojana (PMMY) Loan

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  • State Bank of India (SBI) is a leading public sector bank that offers loans to customers for their personal needs and for business requirements. As part of its portfolio, the lender offers a number of SME loans including the Pradhan Mantri Mudra Yojana (PMMY).

    The Pradhan Mantri Mudra Yojana is a collateral-free loan that can be availed by individuals who require funds for their business needs, for expansion purposes, for modernisation of the business set up or establishment, etc. Read on to know the particulars of the Pradhan Mantri Mudra Yojana.

    Features of the Pradhan Mantri Mudra Yojana (PMMY) Scheme

    Nature of facility Term loan and working capital
    Purpose Modernisation, business capital, expansion
    Target group People belonging to trading sector, part of business enterprises, and those who carry out agricultural activities
    Quantum of loan
    • Maximum loan amount: Rs.10 lakh
    • Loans up to Rs.50,000 is under SHISHU category
    • Loans from Rs.50,001 to Rs.500,000 is under KISHORE category
    • Loans from Rs.500,001/- to Rs.10,00,000/- is under the TARUN category
    Repayment period 3 –5 years
    Processing fee
    • Nil for Shishu and Kishore loans
    • 0.5% of the loan amount for Tarun loans
    Margin
    • Nil for loan up to Rs.50,000
    • 10% for loan amount from Rs.50,001 to Rs.10 lakh
    Pricing Pricing linked to MCLR
    Collateral security No collateral required. However, as Primary Security, hypothecation of P&M for TL and hypothecation of stocks and receivables for CC to be done.
    Eligibility criteria New and existing units
    Other conditions you must be aware of
    • The loan that you avail under Mudra Scheme is guaranteed by Credit Guarantee for Micro Units (CGFMU) and provided by National Credit Guarantee Trustee Company (NCGTC).
    • The cover is available for 5 years and hence the advises granted is for 60 months.
    • You can view the leads on Udyami Mitra Portal.
    • All CC account holder will be issued a Mudra RuPay card by their respective branches.

    Particulars of Pradhan Mantri Mudra Yojana scheme:

    Loan Amount Loan Tenure Interest Rate Processing Fee
    • Shishu: Up to Rs.50,000
    • Kishore: Between Rs.50,001 and Rs.5 lakh
    • Tarun: Between Rs.5,00,001 and Rs.10 lakh
    3 years to 5 years (moratorium period of up to 6 months may be offered) Linked to the MCLR Nil for Kishore and Shishu loans; 0.50% plus tax for Tarun

    Who Can Apply for the Pradhan Mantri Mudra Yojana Scheme?

    The following entities can avail the Pradhan Mantri Mudra Yojana loan:

    • Both existing and new units can avail the Pradhan Mantri Mudra Yojana loan.
    • Business enterprises that are engaged in manufacturing goods can avail this loan
    • Individuals who are employed in the trading and services sector can apply for the PMMY loan.
    • Those who participate in allied agricultural activities can apply for this loan.

    Things to Keep in Mind

    A few things that you should keep in mind about the Pradhan Mantri Mudra Yojana scheme are as follows:

    • Loans that are issued under the Pradhan Mantri Mudra Yojana scheme are guaranteed under the CGFMU or the Credit Guarantee for Micro Units. The same guarantee is also provided by the NCGTC or the National Credit Guarantee Trustee Company.
    • The guarantee that is offered by the CGFMU and the NCGTC is available for a maximum period of five years. Thus, the maximum repayment scheme for the Pradhan Mantri Mudra Yojana scheme is fixed at 60 months.
    • MUDRA RuPay cards will be offered to all eligible accounts.

    Why You Should Apply for the Pradhan Mantri Mudra Yojana Scheme?

    The Pradhan Mantri Mudra Yojana scheme is an ideal choice for individuals who are in need of funds to finance their various business-related requirements. Listed below are a few reasons why you should apply for the Pradhan Mantri Mudra Yojana scheme:

    • Through the PMMY scheme, microenterprises in the country have better access to funds.
    • Individuals in need of funds for business requirements can avail loans under the PMMY scheme at an affordable rate of interest.
    • The PMMY scheme aids in employment generation and growth of GDP.
    • The processing fee charged for the Pradhan Mantri Mudra Yojana is comparatively low. For the Kishore and Shishu schemes, MSE units that avail the loan are charged a zero processing fee, while for the Tarun scheme, a nominal interest of 0.50% plus tax is charged.

    How to Apply for the Pradhan Mantri Mudra Yojana Scheme?

    To apply for the Pradhan Mantri Mudra Yojana Scheme, you will need to do as follows:

    • Read through the features, benefits, and terms and conditions of the loan. It is advisable to familiarise yourself with all the charges that will be levied once you borrow the loan.
    • Check the eligibility criteria specified by the lender to know if you qualify to apply for the scheme.
    • Reach out to State Bank of India to apply for the loan.
    • The lender will require you to fill up an application form and submit the form with a few documents.
    • Post this, your application will be verified. Once it gets approved, you will receive the loan amount in your account.

    Once you receive the loan amount, you will need to start making repayments to the lender. It is in your best interest to repay the loan as per the schedule specified by the lender to avoid any hassles and have a good borrowing experience. For any queries with regard to the Pradhan Mantri Mudra Yojana scheme, you can contact the lender through the customer care channels specified on the lender’s website.

    Thus, if you require funds for any business requirements, you can assess your needs and approach State Bank of India for the Pradhan Mantri Mudra Yojana loan.

        

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