What is Pradhan Mantri Mudra Yojana Loan?

 

In order to promote small & medium scale businesses, Government has started MUDRA (Micro Units Development Refinance Agency ) Yojana. It started in April 2015. Government of India has launched SIDBI Bank to facilitate this. Through them you can get different types of loans to develop your business.

In order to promote Laghu Udyog, Pradhan Mantri MUDRA Yojna got started. It is a 100 % without guarantee loan.

We can get loan in the following 3 categories from Pradhan Mantri Mudra Yojana

  • Shishu Loan : 50 K
  • Kihore Loan : 50 K to 5L
  • Tarun Loan : 5L to 10 L

There is no fixed interest rate. Different banks charge differently. On an average, interest rate is 12 %. We can link our other subsidy accounts to our MUDRA Loan.

How to use the Pradhan Mantri Mudra Yojna Loan?

It can be utilised in the following ways:

  • Commercial Vehicle Loan
  • Car Loan
  • Two Wheeler Loan
  • Loan for Business Development
  • Loan for Working Capital requirement
  • Loan to buy Plant & Machinery
  • Loan to Renovate your office

Maximum Limit for Pradhan Mantri Mudra Yojana Loan  is 10 Lakhs.

Benefits of taking Pradhan Mantri Mudra Yojana Loan

  • Loan without guarantee.
  • No processing fee.
  • Total life for Mudra Loan is 5 years. We can also extend it. Mudra Card is also provided to facilitate transaction.

How to apply for Pradhan Mantri Mudra Yojana Loan ?

There is no specific way or steps to apply for the loan.  For the convenience, we can go through these steps:

  • Check out the banks registered under the Mudra Loan
  • Visit the Banks official website and know more about it. Also visit their nearest branch.
  • Banks may use Good Will Calculator to decide the amount of loan they will issue . There are many other factors as well.

Documents we need to apply for Pradhan Mantri Mudra Yojana Loan

As we have seen, Pradhan Mantri Mudra Yojana Loan  can be availed in three different categories :

  • Shishu Loan : 50 K
  • Kihore Loan : 50 K to 5L
  • Tarun Loan : 5L to 10 L

Documents which we need will differ from category to category.

For Shishu Loan we may not need many documents but for availing a loan of Rs 10 Lakhs, we may need many the following documents :

  • Proof of Identity
  • Proof of Residence
  • Proof of SC, ST & OBC
  • Identity of Business Unit
  • Application should not differ in any bank
  • Balance Sheet of Last 6 Months
  • Income Tax Return Statement
  • Project Report
  • Copies of Proprietorship

Please note that we may need different documents as per the bank rules and the type of loans we are opting for. Also note that the applicant should not be defaulter in any bank.

PM Shri Narendra Modi launches Pradhamantri MUDRA Yojana :

 

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