PM MUDRA YOJANA: Mudra loans are given for various purposes, which lead to income generation and employment generation.
PM Mudra Yojana (PMMY) is a scheme of the Government of India aimed at providing affordable loans to micro enterprises engaged in trading, manufacturing and service sectors including agricultural activities. Micro Units Development and Refinance Agency (MUDRA) is an NBFC that refinances assistance to RRBs, commercial banks, MFIs, small finance banks and other NBFCs for on-lending to micro enterprises.
Business loan borrowers can avail MUDRA loans up to Rs 20 lakh from banks/NBFCs. Borrowers can also avail MUDRA card for working capital requirements, cash withdrawal from any ATM and making purchases through POS machines
MUDRA Loan Details
| Feature | Shishu | Kishore | Tarun | Tarun Plus |
|---|---|---|---|---|
| Loan Amount | Up to ₹50,000 | ₹50,001 – ₹5,00,000 | ₹5,00,001 – ₹10,00,000 | ₹10,00,001 – ₹20,00,000 |
| Loan Facility | Cash Loan, Overdraft, Term Loan | Cash Loan, Overdraft, Term Loan | Cash Loan, Overdraft, Term Loan | Cash Loan, Overdraft, Term Loan |
| Interest Rate | Based on bank/NBFC policy | Based on bank/NBFC policy | Based on bank/NBFC policy | Based on bank/NBFC policy |
| Tenure | Up to 5 years | Up to 3 years | Up to 3 years | Up to 3 years |
| Processing Fee | Nil | As per bank/NBFC policy | As per bank/NBFC policy | As per bank/NBFC policy |
Mudra Loan Interest Rates
Mudra does not determine the interest rates of PMMY loans. The agency has given the loan lending institutions the freedom to determine the interest rates for Mudra loans. Thus, prospective borrowers planning to avail a Mudra loan should contact the concerned bank/NBFC/MFI for their Mudra loan interest rates.
Features of Pradhan Mantri Mudra Yojana
Mudra loans are classified as Shishu, Kishor, Tarun and Tarun Plus, reflecting the growth and financing needs of the applicant.
MUDRA Loan Categories and Loan Amounts
| Category | Loan Amount |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishore | Above ₹50,000 and up to ₹5 lakh |
| Tarun | Above ₹5 lakh and up to ₹10 lakh |
| Tarun Plus | Above ₹10 lakh and up to ₹20 lakh |
Note- Tarun Plus is offered only to those entrepreneurs who have taken previous loans under the Tarun category and have successfully repaid them.
Collateral for Mudra Loans
Mudra loans are collateral-free. These loans are covered under the Credit Guarantee Fund for Micro Units (CGFMU) operated by National Credit Guarantee Trustee Company Limited (NCGTC).
Repayment Period
The loan tenure will be determined based on the economic life of the assets created and/or the cash flows generated through the Mudra loan. While the maximum tenure of a Mudra loan can be up to 3 years, the repayment period of a Mudra Shishu loan can be up to 5 years.
Mudra Loan Fees and Charges
Lenders offering Mudra loans may consider charging an upfront fee as per their internal guidelines. However, most lenders waive off the upfront fee or processing fee for loans under the Shishu category.
PM Mudra Yojana Registration Process
Business loan borrowers can approach designated public and private sector commercial banks, co-operative banks, regional rural banks (RRBs), micro finance institutions, foreign banks and non-banking finance companies to avail loans under PMMY.
Individuals can also apply online for Mudra loans through the Udyammitra portal – www.udyamimitra.in.
Eligibility for PM Mudra Loan
Mudra loans are given to micro enterprise sector engaged in business including manufacturing, service, processing, field or agriculture related activities. The borrower should not be a defaulter in any bank or any financial institution and should have a satisfactory credit track record.
The educational qualification (if any) of the applicant may also be evaluated based on the nature of the proposed activity and its requirements. In addition, applicants may need to have experience, skills or knowledge required to carry out the proposed activity.
Read also: PM Kisan Yojana: Aadhaar link, e-KYC, Check why your Kisan Samman Nidhi may get stuck
