Mudra loan | Pradhan Mantri Mudra Loan Bank Scheme (PMMY) Details| Apply, Documents Required, Interest Rates, Eligibility, Application Form, Government Business Loan
The strongest effort of Prime Minister Narendra Modi has been to connect the deprived population with the bank. In all his addresses, he stressed on the importance of bringing the underprivileged people under mainstream banking to make the marginalized section of the population self-reliant and self-reliant. The Mudra bank loan scheme comes from the slogan of ‘Unfunded Fund’ as the vision of the Prime Minister. MUDRA stands for Micro Units Development and Refinance Agency. This initiative has been started after the success of PM Jan Dhan Yojana.
The population engaged in small businesses always need micro finance to meet their business and day to day business needs. PM Mudra Bank scheme will help in providing micro credit facility up to Rs 10 lakh to such small businessmen. PM Mudra Bank already has a corpus of more than Rs 70,000 crore and this amount will help in increasing the overall production and creating new jobs.
Brief Pradhan Mantri Mudra Loan Scheme in Tabular Format
|1||scheme name||Pradhan Mantri Mudra Yojana or Modi Loan Scheme|
|2||launch date||8 April 2015|
|3||last date||no end date|
|4||target audience||small business owner|
|5||loan amount||50,000 to 10 lakh|
|6||planning stages||Shishu (50 thousand), Kishore (5 lakh), Tarun (Rs 10 lakh)|
|7||Scheme Scope||all over India|
|8||launched by||PM Narendra Modi|
Recovery method under Pradhan Mantri Mudra Yojana
Under the scheme, Mudra Bank will work from both the sides. This will ensure that proper and adequate credit facilities are provided to the needy entrepreneurs on the one hand, while on the other hand, accurate and efficient recovery methodology is followed by the banks to create a just and balanced credit system. You have to repay the loan taken over a period of 5 to 7 years.
Stages of Loan Under Pradhan Mantri Mudra Yojana
There are three main phases of PM Mudra Bank Scheme:
|1||baby||Rs 50 thousand||This phase will cater to the entrepreneurs who are either in their initial stage or need less money to start their business. Under this phase the applicant will be eligible to get a credit of up to Rs.50,000.|
|2||teen||Rupee. 5 lakh||This phase will cater to the entrepreneurs who need funds in the range of Rs 50,000 and Rs 5 lakh. This class of entrepreneurs will either belong to those who have started their business and want extra money to take the business forward or who just need that much money to start their business.|
|3||Tarun||Rs 10 lakh||If an entrepreneur fulfills the required eligibility conditions, he/she can apply for loans up to Rs.10 lakh. This will be the highest level of amount that an entrepreneur can apply for a start up loan.|
What you should know about Pradhan Mantri Mudra Yojana
Apart from the information we have already given about PM Mudra Bank, there are following things that you should also know:
- The Pradhan Mantri Mudra Bank Yojana is said to benefit over 58 million small business owners in the country. It is a sector that employs over 120 million people and this working population mostly comes from the less privileged sections of the society.
- Most small business owners in India have always been outside the purview of mainstream bank loans. This is simply because banks and financial institutions often focus their products and services on secure business, which will pay high interest and keep their money safe. PM Mudra Bank Scheme will help in changing this trend.
- Institutional finance has always been relevant to small businesses. However, inadequate funds and unorganized management of credit facilities to small entrepreneurs never really made it to the needy entrepreneurs. A PM Mudra Bank scheme comes with a dream to fulfill the dreams of many young and budding entrepreneurs.
- Repayment has always been a concern as to why financial institutions cannot provide small business owners with the finance they need. With this initiative of PM Office, the scheme is said to take care of this part as well thus helping both financial institutions and needy small business owners to come on a single platform.
Mudra Loan Scheme Interest Rate
Many people have started inquiring about the interest of Mudra loan. We have got some clarification on this, the interest rate will not be fixed and will depend on your business and type of bank. Each bank will have its own norms.
The government may give some subsidy on interest but the percentage is still not declared. More information about this can be seen on the official website http://www.mudra.org.in/ .
We have just heard that Corporation Bank has offered MUDRA loans at an interest rate of 11-12 per cent.
how to apply mudra loan
There is no formal or structured way to apply for Mudra Loan. You have to approach all the banks listed in this blog and give them the detailed description of your business. Then it will ask you to fill the currency form. If you already have a current account with that bank then it will help in processing your application expeditiously. If you need any equipment for your business, please keep an invoice for it. It is a collateral free loan so it will help if you have a good credit history. Please keep the acknowledgment slip with you for reference.
Mudra Loan Scheme in SBI
Government has decided to provide loan under Mudra Yojana through SBI from 25th September 2015. Forms for Shishu, Tarun and Kishor have already been launched. Under Shishu Yojana, you can take a loan up to Rs.50,000 only. It seems that the first campaign of Mudra Bank scheme in SBI will attract very basic loan i.e. up to Rs.50 thousand only.
Pradhan Manrei Mudra Loan NPA :- It is reported that this special flagship scheme of Modi has increased the NPAs of the banks. Banks are bleeding from NPAs and if this is true it could hurt them and the Indian economy.
Mudra Loan Complaint Office (Helpline, Toll Free, Customer Care) Numbers
A lot of people are asking me about the complaint office of Mudra loan scheme. Please find out the toll free number on which you can call and register your complaint. Kindly provide them the detailed information and ask for the complaint id from them
Banks Offering Mudra Loans
|snow||mudra loan bank||Rate of interest|
|1||State Bank Of India (SBI)||not yet known|
|2||State Bank of Mysore (SBM)||not yet known|
|3||State Bank Of Hyderabad (SBH)||not yet known|
|4||State Bank Of Travancore (SBT)||not yet known|
|5||State Bank Of Bikaner And Jaipur (SBBJ)||not yet known|
|6||State Bank Of Patiala (SBP)||not yet known|
|7||Vijaya Bank||not yet known|
|8||United Bank Of India||9.65% to 11.15%|
|9||Union Bank of India||9.65% to 11.15%|
|10||UCO Bank||not yet known|
|1 1||Syndicate Bank||not yet known|
|12||Punjab And Sind Bank (PSB)||not yet known|
|13||Oriental Bank Of Commerce (OBC)||not yet known|
|14||Indian Overseas Bank (IOB)||not yet known|
|15||Corporation Bank||11% to 11.9%|
|16||Central Bank Of India (CBI)||not yet known|
|17||Canara Bank||not yet known|
|18||Bank of Maharashtra (BOM)||9.7% to 11.7%|
|19||Bank of India (BOI)||not yet known|
|20||Bank Of Baroda (BOB)||not yet known|
|21||axis Bank||not yet known|
|22||Andhra Bank||9.75% to 11.5%|
|23||Allahabad Bank||9.7% to 11.7%|
|23||ICICI Bank||not yet known|
Note: All these interest rates are subject to change without notice from banks
Mudra Loan Card
In short, while the card acts as a credit card with a pre-approved loan amount, it also acts as a debit card, allowing ATM withdrawals.
Here’s a quick look at what a currency card looks like. This is the only design approved by DFS, Government of India:
The Mudra card will work with the RuPay platform and can be used at PoS or Point of Sales. Thus the card will allow users to:
- ATM cash withdrawal
- Swipe the card at PoS.
- Can be used as a credit card to avail overdraft facility.
As of now, only a few banks have managed to jump into the Mudra card bandwagon and it is expected that more and more banks will join in soon. So far the following banks have come out with Mudra cards:
|sno||Name of bank|
|2||Punjab National Bank|
|4||Kotak Mahindra Bank|
|7||state Bank of India|
Mudra Bank Loan for Women SC ST and OBC
The government has clarified that women SC ST and OBC category will be given priority while giving loan under this scheme. However, there is no reservation, even the criteria of preference have not been disclosed. We look forward to consolidating data that can prove this. You need to fill this information while filling the Mudra loan form.
Mudra Loan Eligibility Criteria
This loan is only for small businessmen. There is no such exact criterion. But one thing is certain that if your turnover is high then you will not get the loan. One more thing this loan is not for educational purpose, you cannot get this loan to buy a house. You can get a vehicle loan to buy a commercial vehicle but not a personal one. Hence all persons above 18 years of age can apply for Mudra Loan.
Here is the list of business for which Mudra Loan cannot be taken.
|snow||Mudra cannot be taken for loan|
|3||Buying a Personal Car or Bike|