Pradhan Mantri Mudra Bank Loan Yojana

Pradhan Mantri Mudra Bank Loan Yojana

Posted on Posted in Business, News

The Micro Units Development and Refinance Agency Bank or also known as MUDRA Banks is a new scheme launched on April 8,2015. According to Pradhan Mantri Mudra Bank Loan Yojana(PMMY) , the latest scheme is to look forward to the development of small entrepreneurs. This scheme is launched keeping in mind the remote places in the country where the normal banks are not present or people who are unable to use the regular bank services like loans and credit cards.

Pradhan Mantri Mudra Bank Loan Yojana – Objectives
  • Mudra committee will create a system to grow business by providing loans to small businesses and micro institutions. Entrepreneurs will get the necessary financial assistance through this without any difficulty. Under the MUDRA Scheme, all small businesses and enterprises in need of finance are eligible for a loan.
  • The main objective of the bank is to make a good credit guarantee system.
  • To help set up responsible financial practices in order to prevent over borrowing for lower income entrepreneurs.
  • The committee will also be guiding the person with necessary advice so that he succeeds in his business.
  • Registering all the Microfinance Institutions and agencies to evaluate the performance rating and later accreditation for the first time.
Pradhan Mantri Mudra Bank Loan Yojana scheme offers three types of loans
  • Shishu : Under the Shishu stage, MUDRA will provide a loan up to RS.50, 000 to small businesses.
  • Kishor : Under this stage, MUDRA will provide loans of an amount ranging from RS.50, 000 up to Rs.5 lakh.
  • Tarun : Under this stage,MUDRA will provide loans of amounts ranging from Rs.5 lakh to Rs.10 lakh.

Various public and private sector banks have been given the responsibility to provide loans under PMMY. One can approach the following institutions or banks to apply for a loan with a proper(feasible) business plan:

  1. All Scheduled Commercial Banks in public and private sector.
  2. Regional Rural Banks.
  3. All Micro Finance Institutions (MFI), small business finance companies and NBFCs.
  4. Scheduled urban and state co-operative banks.

These institutions have to pass the eligibility criteria laid down by MUDRA yojana. Institutions which passed the eligibility criteria can provide loans to suitable candidates as per the common parameters, under the PMMY. When the loan is passed, one will get a MUDRA card, similar to a credit card with limit up to 10% of loan amount to purchase working capital.

Documents required for applying for MUDRA loan
  1. Self attested proof of identity along with the loan applicant’s 2 passport size photographs.
  2. Quotation of items and machinery to be purchased.
  3. Details of suppliers and machineries as well as other items to be purchased.
  4. Identity of ownership of business and business address along with copies of necessary licences and certificates.
  5. Proof of category life SC/ST and others if any.

Visit Banks for MUDRA Loan: – Bank of Baroda  |  ICICI  |  Canara Bank  |  PNB

 

 

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