Pradhan Mantri Mudra Bank Loan Scheme Complete Information
MUDRA – Micro Units Development and Refinance Agency is an institution set up by Indian Government under leadership of Prime Minister Sh. Narendra Modi. The aim of the institution is to fund all the non corporate small businesses. There are many such companies and small businesses, start ups, entrepreneurs etc.
MUDRA Bank will be responsible for:
- regulation of MFI(Micro Finance Institution) entities
- preparing and launching the policy guidelines
- running a credit guarantee scheme
- creating good design for the business and by providing financial assistance
Details of Pradhan Mantri Mudra Yojana(PMMY):
As you know it will support the entrepreneurs, small scale businesses and startups but what actually is the eligibility to be a part of this Mudra Bank Loan Scheme. Next is, how to fill in the application for the loan, what will be the interest rates, the procedure of the banks.
Decide upon the category of your business for better understanding:
There are 3 categories under which your business may fall. These are: Shishu i.e. Child Category, Kishor category and Tarun category. Read the descriptions for each below and find the best suitable category for your business:
- Shishu Category: All the startups who have just started fall under this category. Such business owners are looking for business loans. All the micro units under this category are eligible for a total cover of Rs. 50,000.
- Kishor Category: People who have started the business but has been established yet fall under this category. These businesses are eligible for a loan cover of Rs. 50,000 to Rs. 5lakhs.
- Tarun Category: People who have well established businesses but have some financial requirements for its betterment can mark themselves into this category. To fulfill such requirements, those small businesses are eligible for a cover of upto Rs. 10 lakhs.
After you have selected the perfect category for your business, now is the time to apply for the loan under Mudra Bank Loan Yojana. Here is the procedure for the application:
- Visit the private or commercial bank nearest to your location to apply for the loan.
- Download common bank loan application form, fill it and submit it along with your business idea.
- Also, attach your proof of identity, passport sized photographs and proof of address.
- Fill in and complete all the formalities as per the bank instructions.
- Once all the steps are completed, bank will analyse your application and sanction the loan accordingly and made available to you.
All the scheduled commercial banks, regional rural banks, MFI and small business companies which meet the following eligibility requirements can participate in this scheme:
- All public and private sector scheduled commercial banks with a 3 years of continuous profit track record, minimum net worth of Rs. 100cr., net NPAs not exceeding 3% and not less than 9% CRAR are eligible to lend loan.
- All Regional Rural Banks not carrying any accumulated losses and CRAR>9%, having net NPA within 3% and profitable operations are eligible to provide loan under this scheme.
- Download Mudra Loan Scheme Application form for Shishu, Kishor, Tarun Category
- Download pdf file About How to Get Mudra Loan
- Download the Eligibility Criteria Details.
- Or Visit Mudra Scheme Official Site