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Introduction
The unorganized sector in India plays a significant role in GDP contribution. The unorganized sector employs the majority of the workforce, to improve the unorganized sector and micro-units by providing financial assistance curbing poverty and unemployment rate, the Government of India (GOI) launched Pradhan Mantri Mudra Yojana (PMMY) scheme. In this article, we will discuss various features of the PMMY Scheme.
Pradhan Mantri Mudra Yojana (PMMY) is a financial inclusion scheme, launched along with the Micro Units Development & Refinance Agency Ltd (MUDRA) on 8th April 2015 with a motive to fund the unfunded. On march of 2015 MUDRA bank was registered with companies act,2013 and on 7th April of 2015 registered with RBI as a Financial Institution.
The Loans under MUDRA shall be sanctioned to the non-corporate, non-farm small or micro-entities.
The Loans under MUDRA are lent out by the Commercial Banks, RRBs, Small Finance Banks, Micro Finance Institutions (MFIs) and Non-Banking Financial Company (NBFCs).
Eligibility Criteria
The Person Applying for a loan under MUDRA scheme should satisfy below conditions
- He should be Citizen of India
- He should have a business plan for non-farm sector income generating enterprises such as manufacturing, processing, trading or service sectors.
- The maximum financial assistance needed is less than 10 Lakhs.
Types of MUDRA Loans
By the Support of the Pradhan Mantri Mudra Yojana (PMMY), MUDRA has categorized its products based on the funding need of the borrowers or beneficiary entrepreneurs. Products were named in a manner signifying the stage of growth or development.
The Products under MUDRA are
- Shishu- covers loans up to Rs.50,000/-
- Kishor-covers loans above Rs.50,000/- and up to Rs.5,00,000/-
- Tarun- covers loans above Rs.5,00,000/- and up to Rs.10,00,000/
Note: It has been ensured that 60 percent of the loans under the scheme shall be disbursed to Shishu category products and the remaining 40 percent shall be disbursed to Kishor and Tarun category products.
The Borrower or applicant or entrepreneur can approach any of the Commercial Banks, RRBs, Small Finance Banks, Micro Finance Institutions (MFIs) and Non-Banking Financial Company (NBFCs) for Loan or he can apply online by visiting www .udyamimitra.in
Documents Required to get a loan
Shishu Loans
- Identity Proof. i.e. Self-certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card / Passport / Photo Ids, issued by Govt. authority, etc.
- Residential Address Proof i.e. Recent telephone bill / Electricity bill / Property tax receipt / Voter’s ID card / Aadhaar Card / Passport of Individual / Proprietor / Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.
- Recent Photo Copies of Borrower
- Proof of SC/ST/OBC/Minority, caste certificates (if any)
- Establishment or Business address proof
- Last Six months existing bank statement.
- Quotations for the products to be purchased.
Kishor/Tarun Loans
- Identity Proof. i.e. Self-certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card / Passport / Photo Ids, issued by Govt. authority etc.
- Residential Address Proof i.e. Recent telephone bill / Electricity bill / Property tax receipt / Voter’s ID card / Aadhaar Card / Passport of Individual / Proprietor / Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.
- Recent Photo Copies of Borrower
- Proof of SC/ST/OBC/Minority, caste certificates (if any)
- Establishment or Business address proof – Copies of relevant Licenses / Registration Certificates/lease or Rent agreement/ Other Documents certifying to the ownership / Udyog Aadhaar Memorandum
- Last Six months existing bank statement.
- Income tax or Gst return copies (for loans above 2,00,000/-)
- Projected Financial Statements
- Quotations for the products to be purchased.
Mudra Loan Purpose
Financial assistance provided under Mudra loan is extended for a wide range of purposes, some of them are listed below:
- Business Loans
- Working Capital Loans
- Capital Assets or Equipment Finance for Micro entities
- For Commercial transport Vehicles
- Loans for activities allied to agriculture
- Loans for tractors, tillers, two-wheelers used for commercial purpose
MUDRA Card
Mudra card is nothing but the debit card issued against MUDRA loan account for facilitating the working capital loans in the form of cash credit or overdraft.
Mudra card can be operated throughout the country for cash withdrawals and for making payments through any point of sale machines, credit card swiping machines.
Achievements of MUDRA Loan
| Financial Year | 2017-18 | 2018-19 | 2019-20 |
| No of PMMY Loans Sanctioned | 4,81,30,593 | 5,98,70,318 | 5,98,70,318 |
| Sanctioned Amount | Rs.2,53,677.10 CRORE | Rs.3,21,722.79 CRORE | Rs.3,21,722.79 CRORE |
| Disbursed Amount | Rs.2,46,437.40 CRORE | Rs.3,11,811.38 CRORE | Rs.3,11,811.38 CRORE |