New Delhi | Jagran Business Desk: Launched in the year 2015, the Pradhan Mantri Mudra Yojana (PMMY) aims at providing financial support to small and medium scale businesses across the country. As a part of this government initiative, small businesses can avail a Mudra loan of up to Rs. 10 lakhs for meeting their financial requirement. According to government data, in the 7 years since its inception, loans worth Rs 18.60 lakh crore have been disbursed under the PMMY. For this, a total of more than 34.42 crore loan accounts have been opened.
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Types of loans under PMYY
There are three types of loans that can be availed under the PMYY. They are as follows:
1. Shishu: covering loans up to Rs 50,000/-
2. Kishor: covering loans above Rs 50,000/- and up to 5 lakh
3. Tarun: covering loans above Rs 5 lakh and up to Rs 10 lakh
It is to be noted that, while availing Tarun loan, a processing fee of 0.50% (plus applicable tax) of the loan amount is applicable. Whereas, no processing fee is charged in the case of Shishu loans and Kishor loans.
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Eligibility criteria for loans under PMYY
Any Indian Citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading, or service sector and whose credit need is less than Rs 10 lakh can approach either a Bank, MFI, or NBFC for availing of Micro Units Development & Refinance Agency Ltd. (MUDRA) loans under PMMY.
Documents required
1. MUDRA Loan Application with self-attested identity proof of loan applicant and 2 passport size photographs.
2. Loan application prescribed by the lender seeking information about the applicant, past financial results and profile of the activity proposed.
3. Details of suppliers, types of machinery, and other items to be purchased for the activity proposed.
4. Identity of business ownership and business address.
5. Copies of necessary licenses and certificates to carry out the trade or activity for which the finance is availed.
How to apply for PMMY?
You can apply for a Mudra loan under PMMY with the help of leading banks and financial institutions. The steps to apply for a Mudra loan online are mentioned below:
1. Choose the bank or the financial institution with which you wish to avail a Mudra loan.
2. Fill out the basic Mudra loan application form by providing your personal and employment details.
3. Submit your KYC documents such as PAN card, Aadhar Card, or driver’s license, address proof along with other required documents.
4. If you have an existing business, you must provide continuity proof of your business and financial statements.
5. Once you submit the application form and necessary documents, the loan under the PMMY scheme will be sanctioned by the lender.
