Mudra Loan: Get Loan Under PMMY [Ultimate Guide]
If you want to know how to get Mudra Loan under Pradhan Mantri Mudra Yojana (PMMY).
You are on the right page!
If you want to start your own business Or you want to grow your current business Pradhan Mantri Mudra Yojana (PMMY) is best for you.
Hello, friends welcome to another fresh article of “Wealthsetup.com”, Here in this article I explained how to apply for a Loan under Mudra Yojana and procedure.
I will also cover the document requirement and eligibility to borrow a loan under PMMY.
As everybody knows that to start a new business or grow the existing business you need funds.
To fulfill fund requirements normally everybody approaches banks for a loan but tacking a loan from the bank is not an easy process,
You need to face lots of problems in taking loans from the bank because banks ask for a long list of documents to allow loans in some cases banks ask for collateral also.
But after the introduction of the Pradhan Mantri Mudra Yojana by the Government of India, tacking business loans is no more difficult process.
Even the smallest business can avail business loan of up to Rs.10 lakh under the Pradhan Mantri mudra yojana.
Here in this article, we will discuss all the below points one by one to understand how you can borrow loans under PMMY.
- What are the benefits?
- Documents requirements?
- Who can avail?
- Which Banks are providing this facility?
- What is the rate of Interest?
- How to apply?
This information will give you a clear-cut vision to obtain a business loan.
If your are plan to borrow a loan under PMMY you must a have good CIBIL history.
If you don’t know how get check the CIBIL score read our article:- What Is CIBIL Score? | How To Get CIBIL Score On WhatsApp.
Benefits Of Loan Borrowing Under PMMY.
First of all, we discuss the benefits of the loan under the Pradhan Mantri Mudra Yojana,
There are too many benefits of PMMY but here we will discuss the main benefits of PMMY.
The first benefit of a PMMY loan is that there is no minimum loan amount.
You can take Rs.10000, Rs.20000, Rs.50000 or you can take a maximum loan of up to 10 lakh rupees.
The second benefit, If you take a business loan from a bank, then you need to provide collateral or security.
But if you take the same loan under a Pradhan Mantri Mudra Yojana then no need to provide any collateral or security.
The third benefit is you do not need to pay any processing charges when availing of a loan under PMMY.
The fourth benefit is under PMMY any small business can avail loan and start or grow your business.
The fifth benefit is the loan amount you can use for any other purpose also.
These are some major benefits which you must know.
Now let’s discuss what are the documents required to get a loan under Pradhan Mantri Mudra Yojana.
Documents Required For Loan Under PMMY?
As you all know if you want to get a loan from any bank you need to provide some documents to the bank.
Let’s check what are documents you need to provide to get the loan under Pradhan Mantri Mudra Yojana.
First, you need to provide your identity proof Like:-
- Aadhar card
- PAN card
- Voter ID Card
- Driving License
Second, you need to provide resident proof Like:-
- Aadhar card
- Voter Id card
- Ration card
- Telephone Bill
- Any other Utility Bill
- Bank Statement
If you are already doing business and want to take a loan to grow your business.
Then you need to provide the identity of your business address proof & license of your business.
As address proof of business, you can give a rent agreement for the business.
As a license of your business, you can give your business a PAN card.
If you want to take a higher amount of loan you need to explain your business plan.
When you are filling the form for loan transactions there you need 2 recent passport size photos.
So, please carry all these basic documents with you when you apply for Loan.
Who Can Avail Loan Under Pradhan Mantri Mudra Yojana?
The most important question is who can avail loan under Pradhan Mantri Mudra Yojana.
The answer is anybody can avail loan who wants to start a new business or grow an existing business.
- Existing business owners.
- Startup entrepreneurs.
- Any small Industrialist.
- Manufactures etc.
It’s mean any small businessman can avail loan under Pradhan Mantri Mudra Yojana.
Now you understand the benefits and document requirements to avail of the loan.
You are now aware of who can avail of this loan, now it’s time to check from where you can get these loans.
Which Banks Offering Loan Under Mudra Yojana?
Our government allows you to get a loan from any public or private sector bank.
- Public Sector Bank.
- Private Sector Banks.
- Regional Rural Banks.
- Small Finance Banks.
- NBFCs (Non-Banking Finance Company)
Here below I mentioned some examples of Public Sector Bank, Private Sector Banks, Regional Rural Banks, Or Smal Finance Banks, and NBFCs.
Examples of Public Sector Banks:-
- ALLAHABAD BANK
- BANK OF BARODA
- ANDHRA BANK
- CANARA BANK
- BANK OF INDIA
- BANK OF MAHARASHTRA etc…
Examples of Private Sector Banks:-
- Axis Bank Development Credit Bank (DCB Bank Ltd)
- HDFC Bank
- ICICI Bank
- IndusInd Bank
- Kotak Mahindra Bank
- Yes Bank
- Bandhan Bank of Bandhan Financial, etc…
Examples of Regional Rural Banks Or, RRBs:-
- Allahabad UP Gramin Bank
- Andhra Pradesh Grameena Vikas Bank
- Andhra Pragathi Grameena Bank
- Arunachal Pradesh Rural Bank
- Assam Gramin Vikash Bank
- Bangiya Gramin Vikash Bank, etc…
Examples of NBFCs:-
- Power Finance Corporation Limited.
- Shriram Transport Finance Company Limited.
- Bajaj Finance Limited.
- Muthoot Finance Ltd., etc…
These are the option from where you can take a loan under Pradhan Mantri Mudra Yojana.
You can choose any bank from the above list to avail of this loan.
Types Of Loan Under Pradhan Mantri Mudra Yojana.
Before applying for a loan under PMMY you should decide which type of loan you want to take.
There are 3 types of loans:-
Shishu Mudra Loan:- Under this type of loan, you can take a maximum loan of up to Rs.50,000. This loan is mainly for startups, who want to start a business.
Kishore Mudra Loan:- Under this type of loan, you can take a loan of up to Rs.50,000 – Rs.5 lakhs.
Tarun Mudra loan:- Under this type of loan, you can take a loan ranging from Rs.5 lakh to Rs.10 lakh.
Kishore and Tarun loans are for both type-wise people, Those who are already doing business and want to grow their business.
Rate Of Interest For Loan Under PMMY.
Now it’s time to check how much interest you need to pay on the loan you borrow under PMMY.
The overall interest rate on loans under Pradhan Mantri Mudra Yojana is 12% P.A.
But Interest will be decided according to your business plan.
Interest is decided according to how much risk is involved in your business plan and all the banks have different interest rates.
So it is very important for you when you plan to take a loan under Pradhan Mantri Mudra Yojana.
You need to visit all the banks how much you can visit and need to compare the interest rates which low.
Which bank will give you less interest rate you can get a loan from that bank.
The interest rate for the Shishu loan, Kishore loan, Tarun loan will be the same for all types of loan.
Now let’s check how to apply for the loan under Pradhan Mantri Mudra Yojana.
How To Apply For Mudra Loan?
Here now we will check how to apply for a loan If you want to take a loan under Pradhan Mantri Mudra Yojana.
You just have to visit the bank or any financial institution from where you want to take a loan.
After the visit, you have to tell them you want to take a business loan under Pradhan Mantri Mudra Yojana.
They will give you an application form, you can also download the form from the bank website.
You have to fill the form and submit the same at the bank along with supporting documents that I have already mentioned in this article.
All the supporting documents must be self-attested by yourself.
You also need to keep original documents with you.
Bank will take one to two days to verify your documents, business plan, and your CIBIL score.
If your CIBIL score and all other documents are correct then the bank will approve your loan.
After approval once again you have to visit the bank to open a Mudra account with the same bank.
You can also apply for a loan online, www.udyamimitra.in is dedicated to tacking applications for loans.
You just need to visit the website and fill the online application to avail yourself of the loan facility.
FAQ On Mudra Loan.
How Many Mudra Loans Distributed?
Mudra loan distributed as below from 2016
Rs.132954.73 CRORE in 2016
Rs.175312.13 CRORE in 2017
Rs.246437.40 CRORE in 2018
Rs.311811.38 CRORE in 2019
Rs.329715.03 CRORE in 2020
Rs.264676.44 CRORE as of 26th March 2021
What Is The Maximum Limit Of Mudra Loan?
10 lakh is the maxim limit of Mudra loan, you avail under the Tarun Mudra loan scheme.
Is Mudra Loan Available Now?
Yes, Mudra loan is still offered by many banks, you can easily avail this loan according to your business needs.
Is CIBIL Score Mandatory For Mudra Loan?
CIBIL Score is not considered for Mudra Loan, because Government starts this scheme to help people to start a new business and grow existing business.
I hope this article will help you to know how to get a Mudra loan to start or grow a business. If anyone has any queries or suggestions regarding Pradhan Mantri Mudra Yojana, please ask in the comment box.