PMMY: PM Mudra Yojana: Who gets the benefit of Mudra Yojana, who can avail the benefit: What is PM Mudra Yojana? Know who gets the benefit of this government scheme, what is the eligibility…
Prime Minister Narendra Modi on Tuesday said that guarantee-free loans worth more than Rs 33 lakh crore were sanctioned under the Mudra scheme and this has given innumerable people an opportunity to showcase their entrepreneurial skills. While interacting with select beneficiaries of the Pradhan Mantri Mudra Yojana (PMMY) at his residence on the 10th anniversary of the Pradhan Mantri Mudra Yojana (PMMY), he said that it has helped in promoting the spirit of entrepreneurship among the youth of the country. Today we are telling you what is PM Mudra Yojana? Under this government scheme, one loan is being disbursed every half a second. If you also want to start your own business but you are short of funds, then you can also take a loan under Pradhan Mantri Mudra Yojana (PMMY).
What is Pradhan Mantri Mudra Yojana (PMMY)?
Pradhan Mantri Mudra Yojana (PMMY) is a scheme launched on 8 April 2015 by the Hon’ble Prime Minister to provide loans up to Rs 10 lakh. ₹ 20 lakh (for entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category) for non-corporate, non-agricultural small/micro enterprises. These loans are classified as Mudra loans under PMMY.
These loans are offered by commercial banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or apply online through this portal http://www.udyamimitra.in.
Under the aegis of PMMY, MUDRA has created four products namely ‘Shishu’, ‘Kishore’, ‘Tarun’ and ‘TarunPlus’ to reflect the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also offer a reference point for graduation/next stage of growth.
What type of business is Mudra loan available for?
Under the scheme, loans are given to people who are short of money and want to start their own business. Generally, loans are given to vendors, traders, shopkeepers and other small enterprises through this scheme. Under this scheme, loans can be taken for self-proprietors, partnerships, service sector companies, micro industries. Apart from this, loans are taken for food related business, fruit and vegetable related business and micro manufacturing firms.
Eligibility for Mudra Loan
Who can apply for Mudra Loan, its information is given below:-
-The age of the applicant should be between 18 years to 65 years
-Loan amount: Upto Rs 20 lakh.
Who can apply
-Individuals, start-ups, business owners, entrepreneurs and MSMEs
-Traders, artisans, shopkeepers, vendors, small manufacturers, retailers and other business entities engaged only in trading, services and manufacturing sector
-Women entrepreneurs, as well as people from SC/ST/OBC category
-People from any financial institution who have not defaulted any loan will be given priority by the bank/NBFC.
-Applicants with no loan default
-Indian citizens with no criminal background are eligible.
Micro-Units Development and Refinance Agency (MUDRA) Scheme is an initiative by the Government of India to promote small and medium businesses and MSMEs under the Pradhan Mantri Mudra Yojana (PMMY), which provides financial assistance with the help of various banks for expansion and growth of their business. The maximum loan amount given under the MUDRA scheme is Rs 20 lakh. And the repayment period is 5 years.
Documents required for Mudra Loan
-Filled application form with passport size photo
-Applicant’s KYC documents like Passport, Aadhaar card, PAN card, Voter ID card, Driving license, Birth certificate, Utility bill (water and electricity)
-Proof if applicant belongs to SC/ST/OBC/Minority category
-Business incorporation certificate, if applicable
-Business address proof
-Bank statement of last 6 months
-Any other document required by bank and NBFC
Achievements under Pradhan Mantri Mudra Yojana
Since its launch in April 2015, Pradhan Mantri Mudra Yojana (PMMUDRA) has sanctioned over 52 crore loans worth Rs 32.61 lakh crore. This has led to an entrepreneurship revolution across the country. Business growth is no longer limited to big cities. It is spreading to small towns and villages, where first-time entrepreneurs are realising their destiny. The change in mindset is evident: people are no longer job seekers, they are becoming job creators.
MSME Loan Boom: A Strong Business Eco-System
The SBI report states that loans to MSMEs grew from Rs 8.51 lakh crore in FY14 to Rs 27.25 lakh crore in FY24, and is projected to cross Rs 30 lakh crore in FY25. The share of MSME loans in the bank’s total loans grew from 15.8 per cent in FY14 to nearly 20 per cent in FY24, reflecting its growing role in the Indian economy.
68 per cent of total beneficiaries of Mudra Yojana are women
68 per cent of total beneficiaries of Mudra Yojana are women, reflecting the important role of the scheme in promoting women-led enterprises across the country. Between FY16 and FY25, the Pradhan Mantri Mudra Yojana disbursement amount per woman will grow 13 per cent year-on-year to Rs 62,679
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