All you need to know about Pradhan Mantri MUDRA Yojana
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015, for providing loans up to 10 lakh to non-corporate, non-farm small/micro-enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs.
MUDRA has created three products i.e. ‘Shishu’, ‘Kishore’, and ‘Tarun’ as per the stage of growth and funding needs of the recipient micro-unit.
These products cover loan amounts as below:
Shishu: covering loans up to 50,000
Kishore: covering loans above 50,000 and up to 5,00,000
Tarun: covering loans above 5,00,000 and up to 10,00,000
With an objective to promote entrepreneurship among the new generation aspiring youth, it is ensured that more focus is given to Shishu Category Units and then Kishore and Tarun categories.
How to apply for a MUDRA loan
MUDRA loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs.
The borrower can approach any of the lending institutions mentioned above or can apply online through this portal www.udyamimitra.in.
MUDRA funding support is of two types:
Micro Credit Scheme (MCS) for loans up to 1 lakh finance through MFIs.
Refinance Scheme for Commercial Banks / Regional Rural Banks (RRBs) / Small Finance Banks / Non-Banking Financial Companies (NBFCs).
Purpose of MUDRA loan
Mudra loan is extended for a variety of purposes which result in income generation and employment creation. The loans are extended mainly for:
Business loan for Vendors, Traders, Shopkeepers, and other Service Sector activities
Working capital loan through MUDRA Cards
Equipment Finance for Micro Units
Transport Vehicle loans for commercial use only
Loans for agri-allied non-farm income-generating activities, e.g. pisciculture. Beekeeping, poultry farming, etc.
Tractors, tillers as well as two-wheelers used for commercial purposes only…Read more>>