Pradhan Mantri Mudra Yojna (PMMY)

Overview

Pradhan Mantri Mudra Yojana (PMMY) is a government scheme in India aimed at providing financial support to small and micro enterprises. It offers loans categorized as "Mudra Loans" to individuals for starting or expanding their businesses.
Pradhan Mantri Mudra Yojana (PMMY) is a government scheme in India launched in 2015 to provide financial support to small and micro enterprises. It offers loans categorized as Shishu (up to INR 50,000), Kishore (INR 50,000 to INR 5 lakh), and Tarun (INR 5 lakh to INR 10 lakh) to help individuals start or expand their businesses. The scheme aims to promote entrepreneurship, generate employment, and improve financial inclusion.

Categories of Mudra Loans

Shishu

Loans up to INR 50,000 for businesses in the early stage.

Kishore

Loans ranging from INR 50,001 to INR 5 lakh for businesses with moderate financial requirements.

Tarun

Loans ranging from INR 5,00,001 to INR 10 lakh for established businesses with higher financial requirements.

Eligibilty Criteria

01

Individual Entrepreneurs

The scheme is open to individuals who are engaged in non-farm income-generating activities such as manufacturing, trading, and services.

02

Minimum Two Person

The scheme covers various types of businesses, including small and micro enterprises, artisans, shopkeepers, fruit/vegetable vendors, truck operators, food service units, repair shops, and other similar activities

03

Loan Amount

The loan amount under PMMY depends on the stage of the business and the financial requirements. The loans are categorized as Shishu, Kishore, and Tarun, with different maximum loan amounts for each category.

04

Loan Repayment

The repayment period for Mudra Loans can range from 3 to 5 years, depending on the loan amount and the nature of the business. However, it’s important to note that the specific repayment terms may vary among participating financial institutions.

Benefits of PMMY

Collateral-Free Loans

One of the significant benefits of PMMY is that the loans provided under the scheme are collateral-free. Borrowers do not need to pledge any assets or provide guarantors to secure the loan.

Lower Interest Rates

Under PMMY, the interest rates on Mudra Loans are typically lower compared to traditional business loans.

Wide Range of Loan Amounts

PMMY offers Mudra Loans in three categories: Shishu, Kishore, and Tarun. This allows individuals to choose the loan amount that best suits their business requirements

Streamlined Loan Application Process

PMMY has simplified the loan application process, making it more accessible and convenient for borrowers. Individuals can approach participating banks, NBFCs, or MFIs to apply for Mudra Loans.

Documents Requirements

Required in Soft Copy Only

Documents of Individual

PAN & AadharCard
Other ID Proof Driving license, Voter Id or Passport
Address Proof Bank Statement or Utility Bills - E.g.- Electricity Bill / Water Bill / Property Tax
Colour Photo
Email id and Mobile Number

Required in Soft Copy Only

Business Address Proof

If Premises is Owned Sale Deed/Electricity Bill/ Property Tax
If Premises is Rented Rent Agreement or Electricity bill along with NOC from Owner of the premises (Formate will be provided)

Required in Soft Copy Only

START BUSINESS

SPECIAL ENTITY

MANDATORY REGISTRATIONS

NEED BASED REGISTRATIONS / LICENCES

INTELLECTUAL PROPERTIES

DRAFTING

INCOME TAX RETURN (ITR)

GOODS AND SERVICES TAX ( GST )

TDS / TCS

COMPANY COMPLIANCE

LLP COMPLIANCE

CONVERSIONS

ACCOUNTING & BOOK-KEEPING

pAYROLL MANAGEMENT

LOANS

INVESTMENTS

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Pradhan Mantri Mudra Yojna (PMMY)