Pradhan Mantri Mudra Yojana is a Government of India scheme, provide financial assistance to a small business to borrow loans from banks upto 10 lakh for non farm income generating activities.
The best part of the scheme, banks issue loans upto Rs. 10 lakh WITHOUT COLLATERALS.
MUDRA stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units enterprises.
The scheme was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016.
The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.
Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.
a. Shishu : covering loans upto 50,000/-
b. Kishor : covering loans above 50,000/- and upto 5 lakh
c. Tarun : covering loans above 5 lakh to 10 lakh
Any Indian Citizen who has a business plan for a non farm income generating activity such as manufacturing, processing, trading or service sector whose credit need is less than 10 lakh can approach either a Bank, MFI or NBFC for availing of MUDRA loans under PMMY. The usual terms and conditions of the lending agency may have to be followed for availing of loans under PMMY. The lending rates are as per the RBI guidelines issued in this regard from time to time.
1. PAN Card of applicant
2. Identity & Address Proof
3. Three/Two years Income Tax Return of applicant
4. Project Report for proposed business