Mudra Loan
About Us
Sachin Vashishth
(Managing Director)
Contact Info
- +91-9810454531
- Projectfinancer@yahoo.co.in
Book an Appointment
PM MUDRA YOJNA (PMMY) is a Government of India scheme to provide affordable credit to the micro enterprises engaged in trading, manufacturing and service sectors, including agricultural activities. Micro Units Development and Refinance Agency (MUDRA) is an NBFC, which provides refinance support to RRBs, commercial banks, MFIs, small finance banks, and other NBFCs for lending to micro enterprises. Prospective business loan borrowers can avail MUDRA loans of up to Rs10 lakh from a nearby branch of a bank, NBFC, etc. The NBFC also offers MUDRA Card for working capital loans, cash withdrawals from any ATMs and making purchases through POS machines.
Key Highlights of Mudra Loan | |
Loan Facility | Cash Credit, Overdraft & Term Loan |
Interest Rates | Depends on the bank’s policy decisions |
Loan Amount | Up to Rs10 lakhs (Up to Rs20 lakhs proposed in Budget 2024) |
Tenure | Depends on the bank’s policy decisions |
Processing Fees | For SHISHU category (loans up to Rs50,000) – No processing fee |
For Kishore & TARUN category – depends on the financial institution | |
Mudra Loan Interest Rates
Features of PM Mudra Yojana
Loan Amount
MUDRA loans are categorised as ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the development and funding needs of an applicant:
Category | Loan Amount |
SHISHU | Up to Rs50,000 |
KISHOR | Above Rs50,000 to Rs5 lakh |
TARUN | Above Rs5 lakh to Rs10 lakh* |
*Budget 2024 has proposed to increase the Mudra loan limit to Rs20 lakh for entrepreneurs who have repaid previous loans under the ‘TARUN’ category.
Collateral
The loans are collateral free and are covered under Credit Guarantee Fund for Micro Units (CGFMU) operated by National Credit Guarantee Trustee Company Limited (NCGTC).
Repayment Tenure
MUDRA has not specified any repayment tenure for the loans refinanced through the PMMY scheme. The agency has given a free hand to the lending institutions offering MUDRA loans to set their loan tenures as per their own rules and the regulations set by the RBI.
Types of Mudra Loan Facility
The loans under the PMMY scheme are offered in the form of term loan, overdraft and Cash Credit (CC).
Fees & Charges
The lending institutions providing MUDRA loans can consider charging of upfront fee as per their internal guidelines. However, most lenders waive the upfront fee or processing charges for loans under the SHISHU category.
Eligibility Criteria of PM MUDRA Loan
MUDRA loans are offered to micro enterprise sector in manufacturing, service, processing, sector or trading including activities allied to agriculture. The prospective borrower should not be defaulter in any bank or any financial institution and should have a satisfactory credit track record.
The educational qualification (if any) of an applicant can also be assessed depending on the nature of the proposed activity, and its requirement. Furthermore, applicants may be required to have the necessary experience or skills or knowledge to carry out the proposed activity
Eligible borrowers of PMMY
- Individuals
- Proprietary concern
- Partnership Firm
- Private Ltd. Company
- Public Company
- Any other legal forms
Eligible Activities covered under MUDRA Loans
Transport Vehicle
- Purchase of transport vehicles for transportation of goods and passengers such as auto rickshaws, small goods transport vehicles, 3 wheelers, e-rickshaws, taxis, etc.
- Tractors/Power Tillers/Tractor Trolleys/Two Wheelers used only for commercial purposes
Community, Social & Personal Service Activities
Salons, gymnasium, boutiques, DTP and photocopying facilities, tailoring shops, dry cleaning, medicine shops, beauty parlours, cycle and motorcycle repair shops, courier agents, etc.
Food Products Sector
Papad making, biscuit/bread/bun making, jam/jelly making, ice cream making units, agricultural produce preservation at rural level, achaar making, cold storages, small service food stalls and day to day catering / canteen services, cold chain vehicles, ice making units, sweet shops, etc.
Textile Products Sector/Activity
Handloom, chikan work, traditional embroidery and hand work, computerized embroidery, traditional dyeing and printing, zari and zardozi work, powerloom, khadi activity, apparel design, knitting, cotton ginning, stitching and other textile non garment products such as vehicle accessories, bags, furnishing accessories, etc.
Business loans for Traders and Shopkeepers
- Loan to individuals for running their shops
- Trading and business activities/service enterprises
- Non-farm income generating activities with beneficiary.
Equipment Finance Scheme for Micro Units
Individual setting up micro enterprises by purchasing required machinery or equipment, with per beneficiary.
Activities allied to agriculture
Pisciculture, poultry, livestock-rearing, bee keeping, aggregation agro industries, food & agro-processing, diary, fishery, grading, sorting, agri-clinics and agribusiness centres, etc. and services supporting mentioned activities that which promote livelihood or are income generating. Crop loans, land improvement such as irrigation, canal and wells are excluded from the activities allied to agriculture.
MUDRA Card
MUDRA Card is a RuPay debit card, which offers working capital loan in the form of an overdraft facility. The card allows multiple withdrawals and credits, digitalizing transactions and creating credit history for the borrower. MUDRA card is issued against MUDRA loan account and can be used across the country for cash withdrawals from ATM/micro ATM or make purchase using any Point of Sale (POS) machines. The borrower can repay the amount anytime, depending on the availability of surplus cash.
Documents required for availing PM MUDRA Loans
Documentation for availing loan under Shishu Category
- 1. Identity Proof – Self attested copy of Driving Licence/PAN Card/Voter’s ID Card/ Aadhaar Card/Photo Ids issued by Govt. authority/Passport etc.
- 2. Residence Proof – Latest telephone bill/property tax receipt (not older than 2 months)/ Voter’s ID Card/Electricity Bill/Aadhar Card/Domicile Certificate/Passbook of proprietor or partners or latest bank account statement attested by bank officials/Passport/ Certificate issued by local panchayat or government authority or or municipality etc.
- 3. Recent photograph (2 copies) of an applicant, not older than 6 months.
- 4. Quotation of Machinery or other items to be purchased
- 5. Name of supplier or price & details of machinery and/or items to be purchased
- 6. Proof of Identity and Address of the Business Enterprise – Copies of registration certificates/relevant licences/ other documents related to the ownership, address, identity of business unit, if any
- 7. Proof of category like ST/ SC/OBC/Minority etc.
Documentation for availing loan under Kishor and Tarun Category
- 1. Identity Proof – Self certified copy of Voter’s ID card/ PAN Card/Aadhar Card/ Driving License/Passport
- 2. Residence Proof – Latest telephone bill, Property tax receipt (not older than 2 months), Voter’s ID card, Electricity bill, Aadhaar Card and Passport of Proprietor/Partners/Directors
- 3. Proof of ST/SC/OBC/Minority
- 4. Identity/Address Proof of the Business Enterprise – Copies of registration certificates/relevant licenses/other documents related to the identity, ownership and address of business unit
- 5. Account statement of the last 6 months from the existing banker, if any
- 6. Balance sheet of the units of last 2 years along with income tax or sales tax return etc. (Applicable for all cases from Rs.2 lakhs and above)
- 7. Projected balance sheets of 1 year in case of working capital limits and for the loan duration in case of term loan (Applicable for all cases from Rs.2 lakhs and above)
- 8. Sales achieved during the current FY up to the date of submission of application
- 9. Project report (for the proposed project) having details of economic and technical viability
- 10. Articles and Memorandum of association of the Partnership Deed of Partners/company/ etc.
- 11. In absence of third party guarantee, asset and liability statement from the applicant including directors and partners can be asked to know the net-worth.
About Us
Sachin Vashishth
(Managing Director)
Contact Info
- +91-9810454531
- Projectfinancer@yahoo.co.in