PRADHAN MANTRI MUDRA YOJANA
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by Hon'ble Prime Minister on 8th April, 2015.
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of state of India to “fund the unfunded” which brings the enterprises to the formal economic system and also increases the affordable credit to them.
It enables a little borrower to borrow loans up to Rs 10 lakhs for non-farm income-generating activities from all Public Sector Banks like PSU Banks, Regional Rural Banks and Cooperative Banks, Micro Finance Institutions (MFI) and Non-Banking Finance Companies (NBFC), Private Sector Banks, Foreign Banks. The Hon'ble Prime Minister launched the scheme on 8th April, 2015.
Any Indian Citizen who features a business plan for manufacturing, processing, trading or service sector i.e., for a non-farm sector income generating activity and whose credit need could also be a smaller amount than Rs 10 lakh can approach either a Bank, MFI, or NBFC for availing of Micro Units Development & Refinance Agency Ltd. (MUDRA) loans under Pradhan Mantri Mudra Yojana (PMMY).
Type of Loans Provided
Under the aegis of Pradhan Mantri MUDRA Yojana, MUDRA has already created the subsequent products/schemes.
Shishu: It covers loans up to 50,000/-;
Kishor: It covers loans above 50,000/- and up to 5 lakhs;
Tarun: It covers loans above 5 lakh and up to 10 lakhs.
The interventions are named 'Shishu', 'Kishor' and 'Tarun' to suggest the stage of growth/development and funding needs of the beneficiary micro unit / entrepreneur and also provide a point of reference for subsequent phase of graduation / growth to seem forward to.
It would be ensured that a minimum of 60% of the credit flows to Shishu Category Units and therefore the balance to Kishor and Tarun Categories.
There is no grant for the loan given under PMMY. However, if the loan proposal is linked some Government scheme, wherein the govt is providing capital subsidy, it'll be eligible under PMMY also.
To maximize coverage of beneficiaries and tailor products to satisfy requirements of specific business activities, sector / activity focused schemes would be unrolled. To begin with, supported higher concentration of companies in certain activities / sectors, schemes is proposed for:
- Land Transport Sector / Activity - which can inter alia support units for purchase of transport vehicles for goods and private transport like auto-rickshaw, small goods transport vehicle, 3 wheelers, e-rickshaw, passenger cars, taxis, etc.
- Community, Social & Personal Service Activities - This includes saloons, beauty parlors, gymnasium, boutiques, tailoring shops, cleaning, cycle and motorcycle repair shop, DTP and Photocopying Facilities, Medicine Shops, Courier Agents, etc.
- Food Products Sector - Assistancewould be available for undertaking activities like papad making, achaar making, jam/jelly making, agricultural produce preservation at the rural level, sweet shops, small service food stalls and day to day catering/canteen services, cold chain vehicles, cold storages, ice-making units, dessert making units, biscuit, bread and bun making, etc.
- Textile Products Sector- To provide assistance for activities like handloom, power loom, chikan work, zari and zardozi work, traditional embroidery and handwork, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other textile non-garment products like bags, vehicle accessories, furnishing accessories, etc.
HOW TO APPLY?
Borrowers, who wish to avail benefitunder Pradhan Mantri MUDRA Yojana (PMMY), can approach the local branch of any of the financial institutions in their region - PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non-Banking Finance Companies (NBFC). Sanction of assistance shall be as per the eligibility norms of respective financial institution.
Check List: (Documents to be submitted alongside the application)
- Proof of identity – Self attested copy of Voter’s ID card / driver's license / PAN Card / Aadhar Card / Passport / Photo Ids issued by Govt. authority etc.
- Proof of Residence: Recent phone bill / electricity bill / land tax receipt (not older than 2 months) / Voter’s ID Card / Aadhar Card / Passport of Individual / Proprietor / Partners Bank passbook or latest account duly attested by Bank Officials / Domicile Certificate / Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
- Applicant’s recent Photographs (2 copies) which should not be older than 6 months.
- Quotation of Machinery and other purchased items.
- Name of Supplier, details and price of machinery and the purchased items.
- Proof of Identity / Address of the commercial enterprise unit – Copies of relevant Licenses / Registration Certificates / Other Documents concerning the ownership, along with the identity of the address of the business unit, if any
- Proof of community category like SC / ST / OBC / Minority etc.
Note: For all PMMY loans, the following are to be noted.
- No processing fees;
- No collateral;
- Repayment period of loan is extended up to five years;
- Applicant shouldn't be a defaulter of any Bank / financial organization.