Pradhan Mantri Mudra Yojana: MSME Loan / SME Loan Scheme

Pradhan Mantri mudra yojana Application Form | PM Mudra Yojana Loan | Mudra Loan Yojana

The Honorable Prime Minister of India, Shri Narendra Modi, launched PM Mudra Yojana in April 2015 to help non-corporate units in availing loans. This scheme is very beneficial for small and medium businesses as it provides them loans of up to Rs. 10 lakhs. The main focus of Mudra loan Yojana is to help women entrepreneurs and small business units.  

In this article, we will be discussing Pradhan Mantri Mudra Yojana in detail. We will give complete information about this scheme, its benefits, eligibility, the process for applying for loans, and other important points related to the Mudra Loan Yojana. So, if you are going to start a new business or own a small enterprise, you need to read this article.

Pradhan Mantri Mudra Yojana 

Earlier, if you required a new business loan, it took a very long time to complete the proceedings, but the Mudra Yojana loan has made this very simple to support small entrepreneurs. Any non-corporate, non-agricultural, and micro-unit can apply for a Mudra loan.

The government set up MUDRA, a Non-Banking Finance Company (NBFC), to work for the micro-enterprise sector development. Many small scale startups do not have the availability of a formal source of finance, and MUDRA, whose full form is Micro Units Development and Refinance Agency, is helping such businesses by availing loans through microfinance institutions, cooperative banks, regional rural banks, private and public sector banks, Non-Banking Finance Companies, etc. The loan amount has to be returned within a tenure of 3 to 5 years.

The objective of PM Mudra Yojana

The Government of India started mudra loan Yojana to provide loans for self-employment so that small businesses can grow, which will lead to the country’s development. Also, if new businesses flourish, it creates many employment opportunities, which will help provide employment to the many unemployed youths of the country and increase the employment rate. This scheme will also be a solution to the problem of capital investment before starting any new business.

Benefits of Mudra Yojana Loan

  • These loans are provided to traders, shopkeepers, vendors, and MSMEs who are working in the trading and manufacturing and service providing field.
  • The interest rate for these loans is very low.
  • It provides small businesses with a formal source for taking loans to generate the capital for running or starting new start-ups.
  • It is also helpful in creating employment and will motivate people to start their businesses.

Different types of Mudra Loans

There are 3 types of loans that that is provided under Pradhan Mantri Mudra Yojana, which are as follows:

Shishu loan– Under this, someone can avail alone of up to Rs.50000 for starting new business startups.

Kishor loan– Under this, a loan of Rs. 50001- Rs. 5,00,000 is provided for purchasing raw materials, equipment, and for business expansion of the already existing business.

Tarun loan- Under this, any established enterprise can get a loan of Rs .5,00,001 to Rs.1,000,000.

What is a Mudra card?

It is a kind of debit card that is provided to the applicant after the approval of his loan. When someone gets a Mudra loan, a Mudra account and the Mudra card is offered to him, and the Mudra card can be used to withdraw payments from ATMs.

Eligibility for Mudra Loan Yojana

There are different eligibility criteria for taking different loans that we have already discussed above- Shishu, Tarun, and Kishor loans. Still, the basic eligibility criteria is the person applying for the loan should be running/starting a small business enterprise. 

Pradhan Mantri Mudra Yojana Application Form-Online

You can fill up the Pradhan Mantri Mudra Yojana application form online by visiting the official website of the banks which are eligible for granting Mudra loan as per the RBI directions.

Here are the steps for an online application:

  1. You can get the application form from the bank’s website, and then you have to fill in the details asked in that form.
  2. The next step is to upload the documents that are asked to be attached along with the application form.
  3. Then, you have to submit it and wait for the call from representatives of the banks for further proceedings.
  4. After the verification of everything, the loan is granted.

One can also applied online through https://www.udyamimitra.in/

Pradhan Mantri Mudra Yojana Application Form-Offline

  1. You have to visit any private, rural, government, or commercial bank nearby, and you can get the application form there.
  2. You have to fill the application form and submit it along with the documents to the bank officer.
  3. The bank will verify your documents, and within a period of 1 month, you will get your loan granted.

Documents Needed

Below is the list of all the necessary documents that you must be available with while applying for Pradhan Mantri Mudra Yojana.

  • PAN card
  • Aadhar card
  • Balance sheet (of last three years).
  • Age proof (You should be 18+).
  • Address proof.
  • Business establishment proof.
  • Income proof.
  • Licenses, ITR, Sales Tax Return.
  • Passport size photo.
  • Income tax returns.
  • Self tax returns.

Contact Details 

You can contact these National toll-free numbers for PM Modi Mudra Yojana to talk to the officials and get your doubts cleared and problems solved.

Toll-Free Numbers:1800 180 1111/ 1800 11 0001

For more information, visit the official website for PM Mudra Yojana.

Link- https://www.mudra.org.in

I hope this article was helpful to you.

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