These micro and small units include small manufacturing units, service sector units, shopkeepers, fruit/vegetable vendors, truck operators, food service units, repair shops, machine operators, small scale industries, artisans, food processors and others in rural and urban areas. . There are millions of proprietorship/partnership firms running as
It may be noted that loans under Mudra Yojana can be availed only through banks and lending institutions which include:
Public Sector Banks
Private sector banks
A state run co-operative bank
Regional Rural Bank
Institutions offering microfinance
Financial companies other than banks
Interest rate
The rate of interest is charged as per the policy decision of the bank. However, the government has asked to ensure that the interest rate charged is fair to the end borrowers.
Advance Fee/Processing Fee
Banks may consider charging advance fees as per their internal guidelines. Advance charges/processing charges are waived off for infant loans (covering loans up to Rs. 50,000/-) by most banks.
The special thing is that no agent or middleman is engaged by Mudra to get Mudra loan. Borrowers are advised to stay away from persons posing as agents/facilitators of MUDRA/PMMY.
benefits
The benefits under the scheme are categorized into three categories namely ‘Infant’, ‘Adolescent’ and ‘Youth’, reflecting the growth/development and funding requirements of the beneficiary micro-unit/entrepreneur.
Infant: Rs. Covers loans up to 50,000/-
Kishore: Rs. 50,001 to Rs. 5,00,000 covers loan upto
Youth: 5,00,001 to Rs. 10,00,000/- to cover a loan of Rs.
eligibility
To give a loan, the bank ensures that the loan does not default. Hence it is seen that the applicant should not be a defaulter of any bank or financial institution and should have a satisfactory credit track record. Individual borrowers must have the requisite skills/experience/knowledge to undertake the proposed activity. The need for educational qualification, if any, should be assessed based on the nature of the proposed activity and its need.
Application Process
Application for this scheme can be filled online.
The following are the prerequisites for the registration process:
- ID proof
- address proof
- Passport size photograph
- Applicant’s signature
- Identity/address proof of business enterprises
- Go to official website of PM Mudra (https://www.mudra.org.in/) then we select Udyamitra Portal – https://udyamimitra.in/
- Click on Mudra Loan “Apply Now”.
- Select one of the following: New Entrepreneur/Existing Entrepreneur/Self Employed Professional
- Then, fill the applicant’s name, email and mobile number and generate the OTP
After successful registration
Fill in personal details and business details
If any assistance is required for preparation of project proposal etc. then opt for hand holding agencies. Otherwise click on “Loan Application Center” and apply now.
Select the required loan category – Mudra Shishu / Mudra Kishore / Mudra Tarun etc.
Then the applicant needs to fill the business information like business name, business activity etc. and select the type of industry like manufacturing, service, trading, agriculture related.
Fill in other information such as director details, existing banking/credit facilities, proposed credit facilities, future projections and preferred lenders.
Attach all required documents: ID Proof, Address Proof, Applicant’s Photo, Applicant’s Signature, Identity Proof / Address of Business Enterprise etc.
Once the application is submitted an application number is generated which needs to be kept for future reference.
Necessary documents
For infant loans
Proof of Identity – Self attested copy of Voter ID Card/ Driving License/ PAN Card/ Aadhaar Card/ Passport/ Photo Identity Card issued by Government Authority etc.
Residence Proof: Latest Telephone Bill / Electricity Bill / Property Tax Receipt (not more than 2 months old) / Voter ID Card / Aadhaar Card / Passport of Personal / Owner / Partners / Bank Passbook or Latest Account Statement duly attested by Bank Officials / Domicile Certificate / Certificate Issued by Government Authority / Local Panchayat / Municipality etc.
Applicant’s recent photograph (2 copies) should not be more than 6 months old.
Quotation of machinery/other items to be purchased.
Name of supplier/ description of machinery/ cost of machinery and/or items to be purchased.
Proof of Identity / Proof of Address of Business Entity – Copies of relevant license / registration certificate / other documents related to ownership, proof of address of business entity entity, if any.
Evidence of SC/ST/OBC/Minority etc category.
For Kishore and Youth Loans
Proof of Identity – Self attested copy of Voter ID Card / Driving License / PAN Card / Aadhaar Card / Passport.
2) Proof of Residence – Recent Telephone Bill, Electricity Bill, Property Tax Receipt (not older than 2 months), Voter ID Card, Aadhaar Card and Passport of Proprietor/Partners/Directors.
SC/ST/OBC/Minority proof.
Proof of Identity / Proof of Address of Business Undertaking –
- Copies of relevant license / registration certificate / other documents related to ownership, identity and address of the business entity.
- Applicant should not be a defaulter of any Bank/Financial Institution.
- Statement of accounts (last six months) from current banker if any.
- Last two years balance sheet of the units along with income tax/sales tax return etc. (Applicable for ₹2 lakh and above in all cases).
- Estimated balance sheet for one year in case of working capital limit and up to loan period in case of term loan (applicable for ₹2 lakh and above in all cases).
- Sales during the current financial year till the date of submission of application.
- Project report (for proposed project) with details of technical and economic feasibility.
- Articles of Association of the company / partnership deed of partners etc.
- In the absence of a third party guarantee, details of assets and liabilities of the lender, including directors and partners, may be called for to ascertain the net worth.