The Pradhan Mantri Mudra Yojana or PMMY is a flagship scheme of the Government of India to extend affordable credit to micro and small enterprises.
Mudra loans are designed to bring enterprises into the formal financial system, or to “fund the unfunded”. Loans under PMMY scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading and services. Enterprises involved in allied agricultural activities can also apply for Mudra loans.
1. The Mudra loan scheme offers credit facilities to micro and small enterprises engaged in income generation.
2. One of the key benefits of a Mudra loan is that borrowers are not required to provide security or collateral. Additionally, there are no processing charges on Mudra loans.
3. The credit facilities extended under the PMMY can be for any type of fund or non-fund-based requirements. Hence, borrowers can use the Mudra loan scheme for a variety of purposes. The credit from Mudra loans can be used for term loans and overdraft facilities, or to apply for letters of credit and bank guarantees.
4. There is no minimum loan amount for Mudra loans.
The Services which are included in our package are as Follows:
✅ Documents preparation
✅ Preparation of Application
✅Application Filing
✅ In Principal Approval Letter
1. Pan Card of the Company /LLP or Firm
2. Certificate of Incorporation, MOA & AOA
3. Passport Size Photograph
4. Income Tax Return for last 2 Years
5. Utility bill (electricity, telephone, water, gas, post-paid mobile phone, property tax)
6. Income/sales tax returns
7. Bank account statements
8. Sales made during the current FY and up to the loan application filing
9. Estimated balance sheet for 1 year or for the loan tenor
10. Business report certifying economic and technical viability of the business
In case , Department is not satisfied with the Documents Uploaded The said Application stands Cancelled.
Step -1 Arrange all Required Documents:
The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step -2 Documentation:
The next Step is Preparation of Documents to be Submitted at Department.
Step-3 Filing of Application:
The Next Step is Submission of Application at Department
Step-4 In Principal Approval Letter:
After Submission of Application and scrutinity of Documents, Department Issues In Principal Approval Letter or Rejection letter, whatever the case it may be.
There are three types of Mudra loans depending on the loan amount:
1. Shishu: Loans sanctioned under the PMMY scheme up to Rs.50000
2. Kishore: Loans sanctioned under the PMMY scheme from Rs.50001 up to Rs.5.00 lakh
3. Tarun: Loans sanctioned under the PMMY scheme Rs.5,00,001 up to Rs.10.00 lakh
• While there is no minimum loan amount under the Mudra loan scheme, the maximum loan amount that can be taken under the PMMY is Rs.10 lakh.
• Borrowers don’t need to pay processing charges or offer collateral if they avail a Mudra loan
• As per the PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can include those engaged in allied agricultural activities, such as horticulture and fisheries.
• The interest rate on Mudra loans is determined by the Marginal Cost of Lending Rate or MCLR, which is calculated according to the RBI guidelines
Mudra loans are designed to bring enterprises into the formal financial system, or to “fund the unfunded”. Loans under PMMY scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading and services. Enterprises involved in allied agricultural activities can also apply for Mudra loans
The interest rate applied on MUDRA loans are based on RBI defined MCLR (Marginal Cost of Lending Rate) with the following break-up.
Up to Rs.50000:
Micro Enterprises: MCLR + SP
Small Enterprises: (MCLR + SP) + Bank Load
Above Rs.50000 up to Rs.2 lakhs:
Micro Enterprises: (MCLR + SP) + Bank Load
Small Enterprises: (MCLR + SP) + Bank Load
Above Rs.2 lakhs up to Rs.10 lakhs:
Micro Enterprises: (MCLR + SP) + Bank Load
Small Enterprises: (MCLR + SP) + Bank Load
Q. Can MUDRA loan application form be submitted online?
A. Yes, Mudra Loan Application can be Submitted Online.
Q. Which are the required MUDRA loan documents?
A. The documentation is simply based on the type of loan applied for.
Q. What is the main purpose of MUDRA Loan?
A. The basic aim being income generation, the purpose of the loan serves:
1. Business loans for vendors, shopkeepers , traders and another service sector.
2. Use of MUDRA Cards online to meet working capital needs.
3. Finance for equipment.
4. Loans to the transport sector.
Q. What is MUDRA card?
A. It is a digital facility introduced for working capital needs under cash credit of MUDRA loan granted Rupay branding by NPCL.
Q. Does MUDRA scheme extend portfolio guarantee?
A. Yes, under the MUDRA Credit Guarantee Scheme promoted by the Government of India to mitigate collateral and security concerns of the lending institutions.
Q. What is the normal repayment of MUDRA loans?
A. The normal term of repayment is 12 to 60 months.
Q. What is the processing time of MUDRA loan?
A. It is normally processed in 24 hours.