Pradhan Mantri MUDRA Yojana 2020

The full name of MUDRA is Micro Units Development & Refinance Agency Ltd. This scheme is launched by Prime Minister of India. Its launched in 8th April 2015. Its provide financial assistance to person. In this scheme provide loans in public sector on lower rates.

Pradhan Mantri MUDRA Yojana
Pradhan Mantri MUDRA Yojana

Documents Required for MUDRA Yojana

Following documents are required under MUDRA Yojana with application form-

  • I’d proofs (Any Driving license, Voter I’d card, Pan card, Adhar card, Passport and any Photo I’d proof issued by Government of India)
  • Proof of Resident (Any electricity bill and water bill and telephone bill withing last dated three months.)
  • Two passport size photo
  • Identity and address proof of business establishment (business license and registration certificate of business. Other documents containing the owner)
  • Rental agreement of business (if business established in rental facility)
  • Clearance certificate from pollution control board, In case applicable
  • Small and medium enterprises registration are required for business
  • Loan amount above rs. 2 lakhs. (2 years is working capital limit and projrcted loan period)
  • For the company as well as the article of the association
  • In the partnership business required partnership deed
  • Assets and liabilities statement is requires with latest income tax return
  • Furnished copies of lease and tittle deed
  • This loan is provide to all categories SC/ST and all category.

Specific Documents Required for MUDRA Yojana Loan

In below side given a guideline for required documents under this scheme application-
1 For Vehicle Loan is compulsory documents under MUDRA scheme.Following documents is to be submit-
  • Application form of PM MUDRA yojana (fiiled form for vehicle loan)
  • Two passport size photos
  • Identity proof
  • Address Proof
  • Income Proof
  • Bank statement of past six months
2 For Business Installment Loan is compulsory documents under MUDRA scheme.Following documents is to be submit-
  • Bank statement of past six months
  • Photo Identity proof
  • Address proof
  • Application form of PM MUDRA yojana (filed form for business loan)
  • Trade reference
  • Certificates of qualification
  • Proof of business establishment
  • Proof of residence and ownership of office
  • Proof of business continuity
3 For Business Loan (groups and rural business) compulsory documents under MUDRA scheme.Following documents is to be submit-
  • Application form for MUDRA yojana ( filled application form for loan installments and rural business credit)
  • Address proof
  • Photo I’d proof
  • Age proof
  • Proof of ownership of office and resident
  • Bank statement of past one year
  • Income tax return recent past two years.
  • Business continuity proof

Types of Loan

Followings types loans are providing under Pradhan Mantri MUDRA Yojana. These are-
Types of Loans (provide loans under Pradhan Mantri MUDRA Yojana)

Under this scheme provide loan for complete finance assistance and money requirement. It helps all small and another self employed person. This is goof facility for needy. Following facility provide by this and these are-

  • Loan for ‘Working Capital’
  • ‘Overdraft Facility’ for rural and small business
  • Loan for Agriculture activity
  • Loan for buying machines and plants
  • Loan for business renovation
Types of loan segments ( Who can avail MUDRA loan)

Under Pradhan Mantri MUDRA Yojanaloans provide to following types of business person and self employed. These are-

  • Food service business
  • Self proprietor business
  • Fruit and vegetable vendor
  • Partnership business
  • Food processors
  • Service sector firms
  • Small industries
  • Truck operator
  • Machine operator and repair shops
  • Small manufacturing units

Category of Pradhan Mantri MUDRA Yojana Loans

Category of Pradhan Mantri MUDRA Yojana Loans is divided in three parts

  • Shishu Category (Offered maximum amount is rs. 50,000 and interest rate being 10% to 12% annually with up to 5 years of repayment period).
  • Kishor Category (Offered amount rs. 50,000 to 5 lakhs and interest rate & repayment period is based on the scheme and credit history of applicant).
  • Tarun Category (Offered amount is rs. 5 lakhs to 10 lakhs and interest rate and repayment period is as well as based on the scheme and credit history of applicant).

Eligibility for Pradhan Mantri MUDRA Yojana Loans

  • All Non-corporate firms and enterprises
  • Agriculture services from 1st January 2016
  • Where the loan requirement is rs. 10 lakh and below
  • Income generation through trading and manufacturing and services.
Sector Activities Covered Under Mudra Loans
Agriculture Start, establish or expand an agriculture-allied business such as an apiary, a poultry farm, a pisciculture business, a dairy farm, a livestock farm, etc.
Food Purchase of machinery or set up of business in making papad, jam and jellies, biscuit and bread, or selling of fruits and vegetables, etc.
Service Set up a salon, boutique, chemist shop, dry cleaning, photocopying facility, etc.
Textile Artisans who want to start, establish or expand a business in chikan work, zari work, embroidery, stitching, knitting, etc.
Transport Purchase of vehicles for carriage of passengers or goods such as e-rickshaw, small goods transport vehicle, taxi, auto-rickshaw, etc.

Interest Rate for Pradhan Mantri MUDRA Yojana Loans

Bank Interest Rate Tenure
State Bank of India 11.25% Up to 5 years
Syndicate Bank 8.60% – 9.85% Based on the bank’s terms
Bank of India 10.70% onwards 36 – 84 months
Andhra Bank 8.40% to 10.35% 36 months onwards
Tamilnad Mercantile Bank 9.90% – 12.45% Up to 84 months

Benefits of Pradhan Mantri MUDRA Yojana Loans

Benefits and key features of Pradhan Mantri MUDRA Yojana Loans are given in below. By this beneficiaries know about all benefits of the scheme and these are-

  • This loan is used only for business purpose
  • No need for any security
  • Loans provide under the campaign of ‘Make in India’. Its improve skill development and build the best India.
  • Its generated Income
  • Scheme is availed with designated lenders
  • Benefit of discounts of interest rates
  • Repayment period extend up to seven years
  • Many banking facilities
  • Loan for new business start up and affordable interest rate
  • This loan provides in urban and rural areas

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