PM MUDRA Yojana (PMMY) is a scheme by the Government of India to help small businesses get affordable loans. The goal is to support micro enterprises in trading, making things, offering services, and even farming. The Micro Units Development and Refinance Agency (MUDRA) is like a bank that helps other banks and financial institutions provide these loans. If you're starting a small business, you can get a MUDRA loan of up to Rs 10 lakh from a bank or other similar places nearby. They also offer a MUDRA Card, which works like a credit card, for things like getting money from ATMs and buying stuff using card machines.
Key Highlights of Mudra Loan |
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|---|---|
| Loan Facility | Cash Credit, Overdraft & Term Loan |
| Interest Rates | Depends on the bank’s policy decisions |
| Tenure | Depends on the bank’s policy decisions |
| Loan Amount | Up to Rs 10 lakhs |
| Processing Fees | For Shishu category (loans up to Rs 50,000) – No processing fee |
| For Kishore & Tarun category – depends on the financial institution | |
MUDRA doesn't decide the interest rates for PMMY loans. Instead, it lets banks, NBFCs, and MFIs choose the rates. So, if you want a MUDRA loan, just ask your bank or lender about their interest rates.
Lending institutions offering MUDRA loans can decide whether to charge upfront fees based on their own rules. But usually, for loans in the Shishu category, many lenders don't charge any upfront fees or processing charges.
Prospective borrowers seeking business loans can go to specific Public and Private Sector Commercial Banks, Cooperative Banks, Regional Rural Banks (RRBs), Micro Finance Institutions, Foreign Banks, and Non-Banking Finance Companies to access loans under PMMY.
Moreover, individuals have the option to apply for MUDRA loans conveniently online through the UdyamMitra portal at www.udyamimitra.in.
MUDRA loans are divided into three categories: 'Shishu', 'Kishore', and 'Tarun'. These categories signify the development and funding requirements of applicants.
| Category | Loan Amount |
|---|---|
| Shishu | Up to Rs 50,000 |
| Kishor | Above Rs 50,000 to Rs 5 lakh |
| Tarun | Above Rs 5 lakh to Rs 10 lakh |
The loans provided by MUDRA are collateral-free and are covered under the Credit Guarantee Fund for Micro Units (CGFMU), which is managed by the National Credit Guarantee Trustee Company Limited (NCGTC). This provides added security to both borrowers and lenders.
MUDRA hasn't set a specific repayment tenure for loans refinanced through the PMMY scheme. Instead, lending institutions providing MUDRA loans have the flexibility to determine loan tenures according to their own policies and the regulations established by the RBI.
The MUDRA Card is a RuPay debit card that provides a working capital loan through an overdraft facility. This card allows borrowers to make multiple withdrawals and credits, facilitating digital transactions and building credit history. It's issued against a MUDRA loan account and can be used nationwide for cash withdrawals from ATMs/micro ATMs or for making purchases using Point of Sale (POS) machines. Borrowers can repay the amount at any time based on the availability of surplus cash.
MUDRA loans are available for micro-enterprises engaged in manufacturing, services, processing, trading, and activities related to agriculture. Prospective borrowers must have a clean record and not be defaulters with any bank or financial institution. Additionally, they should demonstrate a satisfactory credit history.
| Minimum age | 18 years |
| Maximum age | 65 years |
| Who all can avail loan? | Loans can be availed by new and existing MSME units |
| Collateral | No collateral or third-party security is required |
| Maximum Loan Amount | up to ₹10 Lakhs |
| Eligible Lending Institutions | Public Sector Banks, Private Sector Banks, Regional Rural Banks, Micro-Finance Institutions |
| Documents | Identity proof, residence proof, Income proof, application form, and passport-size photos |
| Eligible Entities |
Some of the eligible entities are as follows:
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To apply for a loan under the Shishu category of the MUDRA Yojana, you'll need the following documents:
Ensure all documents are self-attested and up-to-date for a smooth loan application process under the Shishu category of the MUDRA Yojana.
To avail a loan under the Kishor and Tarun categories of the MUDRA Yojana, you'll need the following documents:
Ensure all documents are properly prepared and up-to-date for a successful loan application under the Kishor and Tarun categories of the MUDRA Yojana.
MUDRA, short for Micro Units Development & Refinance Agency Ltd., doesn't dictate a fixed repayment period for MUDRA loans. Instead, lending institutions have the flexibility to choose the repayment duration for their MUDRA loan recipients. They take into account factors such as the business's cash flow and their own terms and conditions when setting the repayment terms.
The highest amount you can get from a MUDRA Yojana loan is Rs 10 lakhs.
MUDRA Loan Yojana, also known as Pradhan Mantri MUDRA Yojana, is a government program that provides loans up to Rs 10 lakh to small businesses. These loans are offered through various types of banks and financial institutions like commercial banks, small finance banks, microfinance institutions, regional rural banks, and non-banking financial companies (NBFCs).
MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., doesn't set a specific repayment tenure for MUDRA loans. Instead, lending institutions have the freedom to decide the repayment period for their MUDRA loan borrowers. They consider factors like the cash flow of the enterprise and their own terms and conditions while determining the repayment tenure.
If you want to apply for a Shishu MUDRA loan, you can do it online through the UdyamMitra portal at www.udyamimitra.in. Alternatively, you can also visit specific cooperative banks, regional rural banks RRBs), public and private sector commercial banks, foreign banks, microfinance institutions, and non-banking financial companies (NBFCs) that provide Shishu MUDRA loans online.