Pradhan Mantri MUDRA Yojana (PMMY): Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY.
These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply online through this portal www.udyamimitra.in . Under the aegis of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore' and 'Tarun' to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.
The central government has launched the Pradhan Mantri Mudra Yojana (PMMY) to start small enterprises. Under this, people are given small amount of loan to start their enterprise (business). This scheme started in April 2015.
What is the purpose of Mudra Yojana (PMMY)? The Central Government's Mudra Yojana (PMMY) has two objectives. First, easy lending for self-employment. Second, creating employment through small enterprises. If you are also facing the problem of capital to start your business, then you can make your dream come true with the PMMY of the Central Government.
The government's thinking is that people will be motivated for self-employment on a large scale if they get easy loans. Due to this a large number of employment opportunities will also be created. Before the Mudra Yojana (PMMY), small enterprises had to complete a lot of formalities to get a loan from the bank. One had to give a guarantee to take a loan. Because of this, many people wanted to start an enterprise, but were reluctant to take loans from the bank.
Focus on women
The full name of Pradhan Mantri Mudra Yojana (PMMY) is Micro Unit Development Refinance Agency. The special thing about Mudra Yojana (PMMY) is that three out of four people who take loans under it are women.
According to the website made for PMMY, loans worth Rs 228144 crore have been sanctioned under the Mudra Yojana till 23 March 2018. The government has disbursed loans of Rs 220596 crore under the Mudra scheme till 23 March this year.
What are the benefits of Pradhan Mantri Mudra Yojana (PMMY)?
Loans are provided without any guarantee under the Mudra Yojana (PMMY). Apart from this, no processing charge is also charged for the loan. In the Mudra Yojana (PMMY), the repayment period can be extended up to 5 years. The borrower gets a Mudra card, with the help of which can be spent on business needs.
Who can avail loans under Mudra Yojana (PMMY)?
Any person who wants to start his business can take a loan under PMMY. If you want to carry on the current business and need money for that, then you can apply for a loan of up to 10 lakh rupees under the Pradhan Mantri Mudra Yojana (PMMY).
Three types of loans in Mudra (PMMY)
- Shishu Loans: Loans up to Rs 50,000 are given under Shishu Loans.
- Kishore Loans: Loans ranging from Rs 50,000 to Rs 5 lakh are given under Kishore Loan.
- Tarun Loans: Loans ranging from 5 lakh to 10 lakh rupees are given under Tarun loan.
What is the interest rates on Mudra Loans (PMMY)?
There are no fixed interest rates under the Pradhan Mantri Mudra Yojana (PMMY). Different banks may charge different interest rates for Mudra loans. The rate of interest also depends on the nature of the business of the borrower and the risk involved. The minimum interest rate is usually 12%.
How can you take a PMMY loan?
For the loan under Mudra Yojana (PMMY), you have to apply to the government or bank branch. If you want to start your own business, then you have to provide the ownership or rental documents, work related information, Aadhaar, PAN number and many other documents.
Also read: How is the report card of the Central Government's Mudra Scheme? The branch manager of the bank takes information about your business. On that basis, PMMY approves the loan. Depending on the nature of the work, the bank manager may ask you to make a project report.
