Launched by Prime Minister Narendra Modi in April 2015, Pradhan Mantri MUDRA Yojana, or PMMY, is a scheme that aims to offer loans of up to Rs 10 lakh to non-farm small/micro and non-corporate enterprises in a bid to support their businesses and encourage entrepreneurship among the underprivileged sections of the society. These loans, also classified as MUDRA loans are provided by the Regional Rural banks (RRBs), Commercial Banks, Small Finance Banks, MFIs, Cooperative Banks and NBFCs. This initiative is also aligned with the government’s Skill India program which emphasises creating employment opportunities for the youth.
Those interested in the scheme can apply online through the PMMY portal. Here’s are the important details about the PMMY scheme:
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Pradhan Mantri Mudra Yojana: Features
– The scheme offers three types of loans including ‘Shishu’ (loans up to Rs 50,000), ‘Kishore’ (loans above Rs 50,000 and up to Rs 5 lakh), and ‘Tarun’ (loans above Rs 5,00,000 and up to Rs 10,00,000)
– The loans are provided in collaboration with state-level and regional coordinators.
– Existing small businesses can also avail credit facilities at reasonable interest rates in order to expand their operations.
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Pradhan Mantri Mudra Yojana: Sectors
Loans are provided to individuals or businesses from sectors like land transport, service sector, food processing and textile, among others.
Pradhan Mantri Mudra Yojana: Eligibility
– The applicant must be a citizen of India.
– Loans are offered to individuals involved in income-generating activities in the non-farming segment such as manufacturing, processing, trade and service sector.
– The applicant should not have a history of loan default with any bank or financial institution.
– The applicant’s business must be at least 3 years old.
– The entrepreneur should belong to the age group of 24 to 70 years.
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Pradhan Mantri Mudra Yojana: Required documents
– KYC proof like an Aadhaar card/PAN/passport/VoterID
– Proof of business ownership
– Bank documents
Pradhan Mantri Mudra Yojana: How to apply?
Interested applicants can approach any of the lending institutions to apply for the scheme or submit the application online.
– Go to the official website at www.udyamimitra.in
– Click on the option of ‘Apply Now’ on the Home Screen.
– Select from the provided options between ‘New Entrepreneur’, ‘Existing Entrepreneur’, and ‘Self-Employed’.
– In case of a new registration, add the ‘Name of the Applicant’, ‘Email ID’, and ‘Mobile Number’.
– Generate OTP and Register.
