Mobile No.: +91 9843167599 / 98842 67599
  Phone No. : 0422 - 4204182


Pradhan Mantri MUDRA Yojana (PMMY)-2015

Launched: 8 April 2015

Main Objective: Financial support for growth of micro enterprises sector.

Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana was launched with the purpose to provide funding to the non-corporate small business sector. Pradhan Mantri Mudra Yojana (PMMY) is open and is available from all Bank branches across the country.

The small businesses/startups or entrepreneurs can avail loans from Rs. 50 thousand to 10 Lakh to start/grow their business under the three, Shishu, Kishore and Tarun categories of the scheme.

As per the official website of PMMY, 27344053 number of loans have been sanctioned under the scheme till 26 February 2016. The amount sanctioned has reached more than Rs. 1 Lakh Crore.


About Complete Scheme

   Large enterprises in India have always managed to secure credit facilities because of the perception that they create more employment. However, statistics show that large industries employ only 1.25 crore people, while small scale industries which fall under the unorganized sector always experience a dearth of credit facilities, although they employ around 12 crore people in the country.

  With these facts coming to light, the Prime Minister envisaged the Micro Units Development & Refinance Agency Ltd (MUDRA) scheme.


What is the Mudra scheme?

   Mudra is a wholly-owned subsidiary of the SIDBI and provides refinancing facilities to banks and microfinancing institutions against the loans that they have provided to small enterprises in order to promote the development of these micro units.

   The Mudra scheme was created with the sole purpose of funding small entrepreneurs and saving them from exploitation at the hand of money lenders and has supported 1.5 crore new entrepreneurs in setting up small businesses.

  The Mudra scheme offers loans without asking for collaterals. There is no fixed interest on the loans availed under this scheme. Interests are being charged at a minimum of the base rate plus 1-7%. This can be also be higher and depends upon the risk involved and the customer profile.


Who can apply for Mudra Loans?

           Loans under the Mudra scheme can be availed by any Indian Citizen who plans to engage in an income generating activity from non-agricultural sources and whose credit requirement ranges from INR 50,000 to INR10 lac. Under this scheme Banks, Microfinancing and Financial institutions or NBFCs can offer loan facilities for:

* Purchase of transport vehicles for providing public transport or transport of small goods.

* Setting up of shops for community, social and personal service activities like saloons, tailor shops, Courier shops, DTP or dry cleaning shops.

* Financing of food products sectors like making of jams, jellies, bread, pickles or setting up food stalls

* Starting a business in the textile sector like making handloom sarees, dyeing, apparel design, cotton ginning etc.

* Offering business loans for traders and shopkeepers.

* Equipment financing for micro enterprises.


How to apply for Mudra Loans?

 The Procedure to apply for a loan under the Mudra scheme has been kept very simple. Depending upon the loan amount required it is targeted and streamlined with 3 categories:

 Shishu: Start-ups looking for a loan of not more than INR 50,000 can apply for a loan under this category. The interest rate would be 10-12%.

 Kishor: Unestablished Business looking for a loan amount of INR 50,000 to INR 5lacs can apply for a loan under this category and will need to pay an interest in the range of 14-17%.

 Tarun: Established businesses looking for an expansion which can be achieved with a funding of up to INR 10lacs can apply for a loan under this category. Interest will be charged at a rate of 16% and above.

A person seeking a loan under the Mudra scheme will need to

* Prepare a business proposal

* Select a business category (Shishu, Kishor, Tarun)

* Approach a public or private bank where you can apply for a Loan under the Mudra Scheme

* Submit a filled up Loan Application form along with recent passport size photographs, proof of identity and a proof of address

* Complete the formalities stipulated by the bank.

  Once, the bank deems you eligible to secure a loan under the Mudra Scheme, the loan in extended to you in the form of a preloaded Mudra Card which comes  personalised with your name on it.

   This is a RuPay debit card linked to the Pradhan Mantri Jan Dhan Yojana Savings Account and enables you to make easy withdrawals from any ATM when you need to make purchases for your business. The limit of cash withdrawals is set to INR25,000 a day and also covers cash credit and current deposit accounts.

Benefits of the Mudra Scheme

      Loans offers to small businesses in the unorganized sector are now covered by a credit guarantee scheme. It also helps bridge the shortfall in loans for these businesses. This helps small entrepreneurs save on the interests that they need to pay.

         Beneficiaries of the loan do not have to visit the bank every time for withdrawal of the loan amount, as they can make withdrawals using the Mudra Debit Card. Landless and vulnerable sections can make significant gains from this scheme because of the increased liquidity and access to funds.

       The MSME sector has, for long, been overlooked because of their lack of reliable financial information and because of the presumption that it does not generate as much revenue. As a result the growth of this very potent sector has remained stunted and they have suffered due to lack of access to capital.

       The Mudra scheme addresses this very issue by offering them hassle free services with easy clearances and by eliminating the need for collaterals all of which have helped the sector immensely.

       Several people have benefited from this scheme and the government plans to mobilise an additional amount of INR 1 lac crore into the market most of which will be directed towards the Shishu category.