Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri MUDRA Yojana (PMMY) is a major scheme by the Government of India aimed at providing financial assistance to micro and small entrepreneurs. This scheme aims to strengthen their businesses by offering loans of up to ₹10 lakh to entrepreneurs working in sectors such as manufacturing, processing, trade, and service sectors.

Benefits of Pradhan Mantri Mudra Yojana

• Simple Loan Process: PMMY offers a simple loan application process that requires minimal documentation.
• No Collateral Required: Loans under this scheme do not require any collateral, making it easier for small entrepreneurs to receive financial assistance.
• Competitive Interest Rates: Banks provide loans under the Pradhan Mantri Mudra Yojana according to their policies, featuring competitive interest rates.
• Special Benefits for Women Entrepreneurs: The scheme offers special facilities for women entrepreneurs to encourage their participation in business.
• Support for Micro, Small, and Medium Enterprises: PMMY helps in the development and expansion of micro, small, and medium enterprises, contributing to economic growth and job creation.
• New Employment Opportunities: The scheme supports new enterprises, helping to create new job opportunities.

Loan Amount Given under the Pradhan Mantri Mudra Yojana

• Shishu Loan: The maximum loan amount available is up to ₹50,000. This category is for entrepreneurs who are starting small businesses and need a loan amount of up to ₹50,000.
• Kishor Loan: Under this category, entrepreneurs can get a loan amount ranging from ₹50,000 to ₹5,00,000. This is for entrepreneurs whose businesses have passed the initial stage and require a loan amount between ₹50,000 and ₹5,00,000 for expansion.
• Tarun Loan: The maximum loan amount available is from ₹5,00,000 to ₹10,00,000. This category is for entrepreneurs who need to scale up their businesses to a larger level and require a loan amount between ₹5,00,000 and ₹10,00,000.

Required Documents for Application

• Identity Proof: Aadhaar Card/ PAN Card/ Voter ID/ Driving License/ Passport, etc.
• Address Proof: Aadhaar Card/ Passport/ Voter ID/ Driving License/ Electricity Bill/ Water Bill/ Telephone Bill/ etc.
• Business Certificate: Business registration certificate, business license, establishment certificate, etc.
• Photograph: Recent passport-sized photographs.
• Bank Details: Bank statement for the last 6 months.
• Income Proof: Income tax returns, sales tax returns, or any other type of income proof.
• Estimated Project Report: Detailed description of the proposed business, including the business plan, expenses, and profit details.
• GST Registration (if applicable): GST registration certificate.
• Other Documents: Any other documents requested by the bank must also be provided.

Application Process

• Visit the Official Website: First, go to the official website of PM Mudra Yojana.
• Choose the Loan Type: Upon reaching the homepage, you will see three options: Shishu, Tarun, and Kishore. Click on the type of loan you want to take.
• Download the Application Form: After clicking on the option, a link to the relevant application form will appear. Click on the download option to download the application form.
• Print the Form: After downloading the form, print it out.
• Fill Ou t the Form: Carefully read and accurately fill out all the information asked in the form.
• Attach Required Documents: Attach all the necessary documents requested in the form.
• Submit at the Bank: Submit all the filled-out forms and documents to your nearest bank branch.
• Receive the Loan After Approval: Bank employees will review your application, and upon approval, you will be granted a loan under the PM Mudra Yojana.

Would you like to take advantage of the Pradhan Mantri Mudra Yojana (PMMY)? If you want any other information related to farming, please let us know by commenting below. And if you found this information useful, please like it and share it with your fellow farmers. Follow the 'Farmer's Scheme' channel for information on government schemes for farmers.

Frequently Asked Questions (FAQs)

Q: Who can avail of the Pradhan Mantri Mudra Yojana?

A: The Pradhan Mantri Mudra Yojana is an important scheme launched by the Government of India, with the primary objective of providing loan facilities to micro and small entrepreneurs. Under this scheme, entrepreneurs have the opportunity to receive loans ranging from ₹50,000 to ₹10 lakhs, which helps them develop and strengthen their businesses. Applicants need to visit the official website to choose the type of loan, fill out the application form, and submit it along with the necessary documents to their nearest bank. Upon approval, they receive the loan.

Q: What is the interest rate on a ₹50,000 loan under the Pradhan Mantri Mudra Yojana?

A: Under the Pradhan Mantri Mudra Yojana, loans ranging from ₹50,000 to ₹5 lakhs are approved. The interest rate starts from 8.60% and depends on the guidelines of the scheme and the concerned applicant's credit history.

Q: What documents are required to take a loan under the Pradhan Mantri Mudra Yojana?

A: To apply for a Pradhan Mantri Mudra loan, you will need a duly filled application form, proof of identity (such as Aadhaar card, PAN card, Voter ID, Driving License, or Passport), proof of address (such as Aadhaar card, Passport, Voter ID, Driving License, or Electricity/Water/Telephone bill), business proof (registration certificate, license, establishment certificate), passport-sized photo, bank statement for the last 6 months, income proof (tax return, sales tax return), a proposed business report, GST registration (if applicable), and any other documents required by the bank.