 "PM MUDRA Yojana: How to get a collateral-free loan with this Scheme")
Pradhan Mantri MUDRA Yojana (PMMY) was launched in April 2015 with the aim to facilitate easy and collateral-free micro credit of up to Rs 10,00,000 for non-corporate, non-farm small and micro entrepreneurs. Loans under PMMY are provided by member lending institutions (MLIs): Banks, non-banking financial companies (NBFCs), micro finance institutions (MFIs) and other financial intermediaries.
Benefits of PM Mudra loan
It offers the reliability of a government-endorsed scheme.
No collateral required: Borrowers don’t need to provide any security or third-party guarantee.
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Competitive interest rates: Interest rates are affordable. The rate of interest is decided by lending institutions in terms of RBI guidelines.
Accessibility: Funds can be accessed easily using a Mudra loan card.
Wide coverage: Available to a range of businesses including vendors, traders, and service providers.
Flexible repayment terms: Designed to accommodate the financial situation of small businesses.
Types of PMMY loans
Shishu (up to Rs 50,000).
Kishore (from Rs 50,001 to Rs 5,00,000).
Tarun (from Rs 500,001 to Rs.10,00,000).
Documents required for Mudra loan application
Duly filled application form with recent passport-sized photographs.
KYC documents of the applicant, such as passport, voter’s ID card, driving licence, Aadhaar Card, PAN card.
Relevant documents if the applicant belongs to special categories like SC/ST, or any other specified category.
Proof of business address.
Business establishment certificate (applicable for existing enterprises).
Bank statements for the last 12 months.
Any additional documents as required by the bank.
How to apply for PMMY loans
Visit a PMMY-authorised financial institution or NBFC.
Ensure you have a well-documented business plan in hand.
Complete the Mudra loan application form accurately, providing all required details.
Submit the application form along with necessary documents and passport-sized photographs.
Following thorough verification of your documents, your loan request will be approved, and the sanctioned amount will be transferred directly to your designated bank account.
How apply for a Mudra loan online
Visit the official website of Pradhan Mantri Mudra Yojana.
Fill out the form with accurate details including your name, address, contact number, and Know Your Customer details.
Ensure you have all the required documents for Mudra loan application ready, and submit them along with the filled application form.
Complete any additional procedures as specified by the bank. Note that these procedures may vary slightly depending on the bank you are applying to.
The bank will then proceed to verify the submitted documents.
Upon successful verification, the loan amount will be credited to your account.