Pradhan Mantri Mudra Yojana

For availing Digital Mudra Loan (WC)      Apply Now

  1. Mudra loan is extended for a variety of purposes which provide income generation and employment creation. These are loans upto Rs.20.00 lakh to the micro enterprises engaged in activities like manufacturing, trading, services, food processing, agriculture allied units & services thereof being the income generating activity.

Following is an illustrative list of the activities that can be covered under MUDRA loans:

  1. Transport Vehicle: Purchase of transport vehicles for goods and personal transport such as auto rickshaw, small goods transport vehicle, 3 wheelers, e-rickshaw, passenger cars, taxis, etc.
  2. Community, Social & Personal Service Activities: Saloons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shop, DTP and Photocopying Facilities, Medicine Shops, Courier Agents, etc.
  3. Food Products Sector: Activities such as papad making, achaar making, jam / jelly making, agricultural produce preservation at rural level, sweet shops, small service food stalls and day to day catering / canteen services, cold chain vehicles, cold storages, ice making units, ice cream making units, biscuit, bread and bun making, etc.
  4. Textile Products Sector / Activity: Handloom, Powerloom, khadi activity, chikan work, Zari and zardozi work, traditional embroidery and hand work, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other textile non garment products such as bags, vehicle accessories, furnishing accessories, etc.
  5. Business loans for Traders and Shopkeepers: Financial support for on lending to individuals for running their shops / trading & business activities / service enterprises and non-farm income generating activities.
  6. Equipment Finance Scheme for Micro Units: Setting up micro enterprises by purchasing necessary machinery / equipments.
  7. Activities allied to agriculture: Allied Activities included are pisciculture, beekeeping, poultry, livestock rearing, grading, sorting, aggregation agro industries, diary, fishing, Agri clinics and agribusiness Centres, food & agro - processing, etc. and services supporting these which promotes livelihood or are income generating shall be eligible for coverage under PMMY.

The agricultural activities not eligible for coverage under PMMY are crop loans, land improvement such as canals, irrigation, wells etc.

The Salient features of MUDRA loans scheme are:

S.N.

Parameter

Guidelines

1

Name

MUDRA Loan

2

Purpose

  • Need based term loan/OD limit/composite loan to eligible borrowers for acquiring capital assets and/or working capital/marketing related requirements.
  • Financial assistance to income generating micro enterprises engaged in manufacturing, Processing, trading, and services sectors.
  • The Project cost is decided based on business plan and the investment proposed. MUDRA loan is not for consumption/personal needs.
3

Nature of Facility

  1. Term Loan Facility.
  2. Cash Credit / Overdraft Facility
4

Eligibility Borrowers

  1. New or existing micro unit / enterprise, including micro unit/enterprise set up under Joint Liability Group (JLG) framework, individually or jointly (irrespective of the availability of guarantee under JLG), falling under any sector covered under PMMY or as defined in the MSMED Act, 2006 (as amended from time to time), who meets eligibility criteria prescribed by CGFMU and whose credit requirement does not exceed the specified limit under PMMY. Specified maximum limit of the loan shall be Rs.20 lakh or such other amount as may be decided by the CGFMU from time to time.
  2. Overdraft loan amount of Rs.10,000/- sanctioned under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund.
  3. Self Help Groups who meet eligibility criteria.
  4. Individuals, Proprietary concern, Partnership Firm, Private Ltd. Company, Public Company, and any other legal entity.
  5. The applicant should not be defaulter to any bank or financial institution and should have a satisfactory credit track record.
  6. The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity. The need for educational qualification, if any, need to be assessed based on the nature of the proposed activity, and its requirement.
5

Quantum of Finance and Categories under MUDRA Loan

The schematic interventions of MUDRA Ltd. have been named 'Shishu', 'Kishor', 'Tarun' and ‘Tarun Plus’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth. They are presently defined as under:

  1. Shishu: covering loans upto Rs.50,000/-
  2. Kishor: covering loans above Rs.50,000/- and upto Rs.5 lakh.
  3. Tarun: covering loans above Rs.5 lakh and upto Rs.10 lakh.
  4. Tarun Plus: covering loans above Rs.10.00 lakh and upto Rs.20.00 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category.
6

Repayment Tenure

  1. Term Loan: To be repaid in suitable installments with suitable moratorium period as per cash flow of the business.
  2. OD & CC Limit: Repayable on demand. Annual Renewal/ Review.
7

Margin

25%

8

Rate of Interest

  1. For Loan Upto Rs.10 Lakh: RLLR + 2.25 + BSS
  2. For Loan Above Rs.10 Lakh and upto Rs.20 Lakh: RLLR + 2.00 + BSS

(At present RLLR is 9.05 % p.a., BSS is 0.50% p.a.)

9

Primary Security

First and exclusive charge on all assets created out of the loan extended to the borrower and the assets which are directly associated with the business/project for which credit has been extended.

10

Collateral

NIL

11

Guarantee Coverage

  • MUDRA Guarantee cover under Scheme of CGFMU from NCGTC. Guarantee fee to be borne by borrower.
12

Insurance

Comprehensive insurance of all the securities charged to the Bank should be taken with Bank clause.

13

Processing Fee

As per extant service charges guidelines.

At present:

  1. Working Capital Facility:
    • Up to Rs 5.00 Lakh: NIL
    • Above Rs. 5 Lakh @ 0.35% p.a.
  2. Term Loan:
    • up to Rs. 5 Lakh: NIL
    • Above Rs 5 Lakh upto to Rs.20.00 Lakh: 1.00% of Sanctioned limit.
14

Commitment Charges

Nil

15

Prepayment Charges

Nil

16

Account Handling Charges (Includes Documentation, Inspection/ supervision, NeSL and CIBIL charges)

As per extant service charges guidelines of Bank.

At Present:

  1. Up to Rs.25000/-: NIL
  2. Above Rs.25000/- to Rs 2.00 Lakh: Rs. 2000/-

Above Rs 2.00 lakh to Rs.20 Lakh: 0.55% p.a.

Min: Rs. 2500/-

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Click here for FAQs related to Pradhan Mantri MUDRA Yojana (PMMY)

Download Form :

  1. English :"Shishu" application form with revised checklist & Udyog Aadhaar Registration Number
  2. English :"Kishore" & "Tarun" application form with revised checklist & Udyog Aadhaar Registration Number
  3. Marathi :Loan Application Form
  4. Kannada ::Loan Application Form
  5. Manipuri ::Loan Application Form
  6. Assame ::Loan Application Form
  7. Urdu ::Loan Application Form
  8. Tamil ::Loan Application Form