All about Pradhan Mantri Mudra Yojana loans

Any interested beneficiary who wants to start their own business and seek a bank loan to progress their business can apply under the Pradhan Mantri Mudra Yojana. Prior to the implementation of this scheme in our nation, entrepreneurs had to go to banks to seek loans to start their own businesses, and face many issues but could not get the loan without a guarantee. 

Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana was launched on April 8, 2015 by Prime Minister Narendra Modi. With the Pradhan Mantri Mudra Yojana, PMMY, all enterprises would be able to readily obtain bank loans of up to Rs 10 lakh. 

Commercial banks, RRBs, small finance banks, cooperative banks, and MFIs offer Mudra loans. The Mudra Loan Scheme has no fixed interest rate. The primary interest rate on these loans is 12%. The loan repayment time has been extended to five years.

“Empowerment of Women through entrepreneurship, ease of living and dignity has gained momentum in last 10 years 30 crore MUDRA Yojana loans have been given to woman entrepreneurs,” said finance minister Nirmala Sitharaman in her Budget speech 2024.

Pradhan Mantri Mudra Yojana: What are mudra cards?

Mudra Loan refers to the loan issued under the Pradhan Mantri Mudra Yojana and Mudra cards are debit cards issued to Mudra loan holders. Their characteristics are:

• You can withdraw money from ATMs with this card.
• The bank makes a loan section in your name up to a certain limit. You can withdraw money with this card up to the bank’s approved limit.
• This card can be used to meet the business’s working capital needs.
• Currency transactions using Mudra cards are now entirely digital.
• The beneficiary can use this card to withdraw money from ATMs located around the country and to make payments at Point of Sale devices.

PMMY: Mudra loan types

• Shishu Loan – The bank will provide a loan of up to Rs 50,000.
• Kishor Loan – The bank would provide a loan ranging from Rs 50,000 to Rs 5 lakh.
• Tarun Loan – The bank would provide a loan ranging from 5 lakh to 10 lakh.

Pradhan Mantri Mudra Yojana: Eligibility

• The age of the applicant must be at least 18 years old.
• Person should have valid ID proof.
• The groups listed below are eligible for this scheme:

1. Small Business 
2. Artisans 
3. Shopkeepers 
4. People engaged with Agriculture 
5. Purchase of commercial vehicles such as tempo, truck, auto etc.
6. Food processing sector including manufacturing, packing and distribution.
7. Services such as doctors, lawyers etc.
8. Other income generating sectors such as repair shops, beauty parlours etc.

 

Pradhan Mantri Mudra Yojana: Documents required 

• Application form for Mudra
• 2 passport-sized colour photos
• Photo identification is required
• Address verification
• Proof of income
• Account statement (last 6 months)
• Business plan
• Quotation of the business
• Caste certificate
• Proof of ownership of the business

 

Pradhan Mantri Mudra Yojana: Advantages 

• It assists the country’s entrepreneurs by providing banks with low-interest loans to launch their own businesses.
• You will not be required to provide any guarantee in order to obtain a loan under this plan.
• It can be used for various purposes such as working capital, expansion, machinery, renovation etc.
• Can be availed from public sector bank, private sector bank, regional banks, co-operative banks etc.
• The PMMY also offers the Mahila Udyam Scheme for women entrepreneurs.

Pradhan Mantri Mudra Yojana: Lending Activities

Mudra loans are provided under the Pradhan Mantri Mudra Yojana to generate revenue and employment. This loan is intended for the following purposes:

• Vendor, merchant, and shopkeeper loans, as well as other service sector operations
• Mudra Card provides a working capital loan.
• Micro-unit equipment financing.
• Loan of a transport vehicle for commercial use only.
• Loans for non-farm income-generating businesses such as fish farming, beekeeping, poultry farming, and so on.

Pradhan Mantri Mudra Yojana: How to Apply?

If you wish to acquire a bank loan to establish your business through the Pradhan Mantri Mudra Yojana, you must follow the steps outlined below.

• To begin, to apply under this plan, the applicant must fill out the Pradhan Mantri Mudra Yojana application form from the relevant bank.
• Following that, all of the information requested in the application form, such as name, address, mobile number, Aadhar card number, and so on, must be filled out and submitted to the relevant bank.
• After the bank officer has verified your application form and all of your documentation, the loan money will be deposited into your bank account within one month.

Pradhan Mantri Mudra Yojana: Steps to login in portal 

• To begin, go to the Pradhan Mantri Mudra Yojana’s official website.
• It will now appear in front of you at home.
• After that, you must click on the Login for PMMY Portal link.

• The login form will now appear in front of you, and you must login by entering your username, password, and captcha code.
• You will then be able to access the PMMY Portal.

 

Pradhan Mantri Mudra Yojana: Steps to download toll free number

• To begin, go to the Pradhan Mantri Mudra Yojana’s official website.
• It will now appear in front of you at home.
• You must click on the Contact Us link on the home page.

• Now, a new page will appear in front of you, and you must click on the download link printed next to the PMMY toll free number.

• When you click on this link, all of the state-specific toll free numbers will be downloaded.

 

Pradhan Mantri Mudra Yojana: Beneficiaries

Financial Year	No. of PMMY Loans sanctioned in a year	Loan Sanctioned amount (in Rs)	Loan disbursed amount (in Rs)
2015-2016	34880924	137449.27 crore	132954.73 crore
2016-2017	39701047	180528.54 crore	175312.13 crore
2017-2018	48130593	253677.10 crore	246437.40 crore
2018-2019	59870318	321722.79 crore	311811.38 crore
2019-2020	62247606	337495.53 crore	329715.03 crore
2020-2021	50735046	321759.25 crore	311754.47 crore
2021-2022	53795526	339110.35 crore	331402.20 crore
2022-2023	4206708 *	29894.08 crore *	28994.94 crore *
Total	349361060	1921636.91 crore	1868382.28 crore

*Provisional data

Pradhan Mantri Mudra Yojana: Atmanirbhar Bharat Abhiyaan

Finance Minister, Nirmala Sitharaman, announced the Atmanirbhar Bharat Abhiyaan /Self-Reliant India campaign on May 14, 2020. Under the self-reliant India campaign, all those who have accepted Shishu loans under the Pradhan Mantri Mudra Yojana received a 2% interest subsidy for a period of 12 months.

PMMY: Contact information

For any queries regarding PMMY, email help@mudra.org.in 

FAQs

Who are eligible for PMMY?

Any Indian Citizen with a business plan for a non-farm income generating activity can avail of a loan up to Rs 10 lakh from a bank, MFI or NBFC under PMMY.

Is PAN Card necessary for availing PMMY loans?

No, PAN Card is not necessary. However, have to satisfy the KYC requirements of the institution lending the PMMY loan.

What is the interest rate under Mudra Loans?

The interest rates are deregulated. Institutions have been advised to charge reasonable interest rates within the overall RBI guidelines.

What is the turn-around time for processing of PMMY-Shishu loans?

Loans will be processed within 7-10 days.

Is there a subsidy under the PMMY?

No, there is no subsidy under the PMMY.