Pradhan Mantri Mudra Yojana Kya Hai: Pradhan Mantri Mudra Yojana (PMMY) was introduced on April 8th, 2015. The scheme provides Rs. 50,000 as a loan under the sub-scheme Shishu, Rs. 50, 000 to 5 lakhs under the sub-scheme Kishore and Rs. 5 lakhs to 10 lakhs under the sub-scheme Tarun.

The loan received does not need collateral. These plans aim to increase the confidence of young, skilled, or educated workers, who can now seek to become first-generation entrepreneurs. Small existing businesses can also expand their businesses.

Pradhan Mantri Mudra loan is collateral-free, provided by financial institutions with a repayment period of between 12 months and 5 years through a flexible EMI.

Pradhan Mantri Mudra Yojana Features 

• Three types of loans are given under this scheme which are Shishu, Kishor, and Tarun. The interest rate on the loan varies from one bank to another bank and it depends on the requirement of business 
• No minimum loan amount under this scheme
• Rs. 10 lakh is the maximum loan amount under this scheme
• Security or collateral is not needed to take a loan under this scheme
• A processing fee is not required
• The loan repayment period is between 12 months to 5 years. 

How Many Schemes are there Under Pradhan Mantri Mudra Yojana?

Mantri Mudra Yojana loan scheme provides loans under three schemes, namely Shishu, Kishor, and Tarun. The loan amount provided under each category is mentioned below: 

• Shishu Loan Scheme: You can avail of a loan amount of Rs. 50, 000 under the Mudra Shishu loan scheme for new businesses and start-ups.  
• Kishore Loan Scheme: Under this loan scheme one can avail of a loan from Rs. 50,000 to 5, 00, 000 to buy machinery/equipment, raw materials and to expand existing business. 
• Tarun Loan Scheme: This loan scheme provides a loan amounting from 5, 00,000 to 10, 00,00 to establish start-ups and businesses. 

Mudra Yojana Loan Benefits

• Mudra loans are mostly given to individuals, traders, retailers, shopkeepers, vendors, and Micro, Small & Medium Enterprises. (MSME) operating only in the manufacturing, trading, and service sectors.
• This loan scheme is covered by the Government of India under Credit Guarantee Schemes.
• The loan amount can also be used as time loans, working capital loans, and overdraft loans. 
• The Mudra loan can be obtained by all non-agricultural enterprises, i.e. small or micro-enterprises involved in income-generating activities. 
• People belonging to SC/ST categories can also avail of Mudra loans at low-interest rates. 
• To withdraw money borrowers are provided with a Mudra card that can be used to withdraw loan amounts according to the need of the business. The amount of the loan can partially be withdrawn by the Mudra card from the total amount sanctioned.  

Also Read: Ayushman Bharat Bima Yojana

What is the Purpose of Pradhan Mantri Mudra Yojana? 

The following is a list of businesses covered by the Mudra scheme to engage in revenue-generating activities:

• Commercial Vehicles: Mudra financing loan for equipment and machinery can be used to purchase commercial vehicles such as tractors, taxis, tillers, auto-rickshaws, trollies, vehicles used to carry goods, e-rickshaws, 3-wheelers, etc.
•  Service Sector Activities: The loan can be used to start tailoring shops, gym centers, salons, pharmacies, workshops, and dry cleaning and photostat shops, etc.
•  Food and Textile Activities: Different activities related to respective sectors such as papad, achaar, jam, biscuits, ice cream, jellies, and confectionery, and the preservation of agricultural products in rural areas. 
•  Traders and Shop Owner Businesses: Starting up of shops, service companies, trade, and business activities, and non-agricultural revenue generation activities. 
• Micro Units Equipment Financing: Loan up to Rs. 10 lakhs. 
• Allied Agricultural Activities: Activities linked to employment in agricultural business centers and food and agricultural processing units, poultry farming, pisciculture, beekeeping, animal husbandry, gardening, agro-industry, dairy, etc.

Pradhan Mantri Mudra Yojana Application

The application form for Pradhan Mantri Mudra Yojana is available at www.mudra.org.in. If you want to apply you can download the form and fill out all the required information. There may be slightly different application procedures for different banks. 

You need to go to the nearest bank branch where you want to get a Mudra loan. You also need to complete the formalities of the bank after submitting a duly completed application form.

Steps to Apply for Pradhan Mantri Mudra Loan (PMMY) 

• By visiting the website mudra.org you can download the application form. 
• The Shishu loan application form is different, but the Kishor and Tarun loans forms are the same.
• Enter information such as mobile phone number, Aadhaar number, name, address, etc. on the loan application form.
• Attach 2 passport size photographs.
• Once you have completed the form, go to any bank or private company and complete all the necessary procedures to get the loan.
• The head of the bank branch will ask for information about the work you want to start. Based on this, PMMY will approve your loan. 

Interest Rate on Mudra Loan Scheme

The interest rate on Pradhan Mantri Mudra Loan is not fixed. For Mudra loans, different banks charge different interest rates. The minimum interest rate for these loans is generally 12 percent. 

Mudra Loans for Women Entrepreneurs

PMMY scheme promotes women’s entrepreneurship within PMMY and therefore banks and microfinance institutions (MFIs), offer credit options such as reduced or concession loan interest rates to female borrowers. 

Mudra currently offers a discount of 25 basis points (bps) on interest rates offered by the Non-Banking Financial Company (NBFC) and MFI to female entrepreneurs.

Under Mudra Yojana the maximum amount of the loan given to women entrepreneurs is Rs. 10 lakhs. The eligibility of Mudra Loan for Women remains the same as stated for individuals and companies 

What is the Mudra Card?

Mudra cards are types of Debra cards that are issued to Mudra borrowers to meet their working capital needs. After approving the Mudra loan, the Mudra lender opens a credit account for the borrower and issues him a debit card.

The amount of the loan is paid to the bank account, after which it can be withdrawn from the total amount sanctioned in portions through the Mudra card by the borrower according to his/her business needs. 

Conclusion

Launched in 2015, Pradhan Mantri Mudra Yojana aims to lend up to Rs. 10 lakhs to small businesses and act as a financial regulator for microfinance institutions (MFIs). Mudra is designed for trained or educated young workers and entrepreneurs, including women entrepreneurs.

The purpose of this scheme is to promote and ensure access to finance for small and medium-sized enterprises (NCSBS), making them a tool for GDP growth and job creation.

Mudra loans are readily available in three categories – Shishu, Kishore, and Tarun – to indicate the level of growth/development and capital requirements of the micro-units/ entrepreneurs.