Mudra Loan | Pradhan Mantri Mudra Loan Bank Yojana (PMMY)

It has been the strongest endeavor of the Prime Minister Narendra Modi to bank the unbanked population.  He, in all his addresses emphasizes the importance of bringing the unbanked people under the mainstream banking in order to make the neglected section of population self reliant and self dependent.

Mudra Bank Loan yojana comes as a vision from the Prime Minister by the slogan, ‘Fund the Unfunded’.  MUDRA means Micro Units Development and Refinance Agency.  This initiative has been started after the success of PM Jan Dhan Yojana.

Population engaged in small businesses always requires micro finance to facilitate their business and day to day business needs.  PM Mudra Bank Yojana would help in facilitating micro credit up to Rs 10 lakh to such small business owners.  PM Mudra Bank already has a corpus of more than Rs 70,000 CR and this amount would help in increasing the overall output and creating newer jobs.

Brief Pradhan Mantri Mudra Loan Yojana in Tabular Format

SNO Parameters Details
1 Scheme Name Pradhan Mantri Mudra Yojana or Modi Loan Scheme
2 Launch Date 8th April 2015
3 Last Date No last date
4 Target Audience Small Business Owners
5 Loan Amount From Rs 50,000 to 10 Lakhs
6 Scheme Stages Shishu (50K), Kishor ( 5 Lakhs), Tarun (Rs 10 Lakhs)
7 Scope of Scheme Across India
8 Launched By PM Narendra Modi

The recovery method under pradhan mantri mudra yojana

Mudra Bank would work on both ends, as per the scheme. It would ensure that proper and adequate credit facility is facilitated to the needy entrepreneurs on one hand, whereas, accurate and efficient recovery method is followed by the banks on the other, to create a justifiable and balanced credit system. You will have to repay the loans taken in a tenure ranging from 5 to 7 years.

The stages and reach of loan under pradhan mantri mudra yojana

There are three main stages of PM Mudra Bank Yojana:

SNO Stages Maximum Amount Details
1 Shishu RS 50 Thousand This stage would cater to entrepreneurs who are either in their primitive stage or require lesser funds in order to get their businesses started.  Under this stage the applicant would be eligible to get up to Rs 50,000 credit.
2 Kishor Rs 5 Lakhs This stage would cater to entrepreneurs who have requirement of funds in the range of Rs 50,000 and Rs 5 lakh.  This section of entrepreneurs would belong to either those who have already started their business and want additional funds to mobile the business or those who simply require this much of money to start up their businesses.
3 Tarun Rs 10 Lakhs If an entrepreneur meets the required eligibility conditions, he/she could apply for a loan up to Rs 10 lakh.  This would be the highest level of amount that an entrepreneur could apply for a start up loan.

What you should know about Pradhan Mantri Mudra Yojana

Apart from what we have already informed about PM Mudra Bank, following are the things that you should know as well:

  1. The Pradhan Mantri Mudra Bank Yojana is said to benefit more than 58 million small business owners in the country. This is one sector under which more than 120 million people are employed and this working population mostly comes from less privileged sections of society.
  2. The majority of small businesses owners in India have always remain outside the ambit of mainstream bank credit. This is just because banks and financial institutions often focus their products and services for the secured business lot, who would repay at higher interest and have their monies secured.  PM Mudra bank yojana would help in getting this trend changed.
  3. Institutional finance has always been relevant to small businesses. However, inadequate corpus and unorganized management of credit facility to small entrepreneurs never really made it reach the need entrepreneurs.  A PM Mudra bank yojana comes with a dream to get the dreams of many young and budding entrepreneurs fulfilled.
  4. Repayment has always been a concern why financial institutions could not provide required finance to small business owners. With this initiative from the PM office, the scheme is said to take care of this part as well and thus help both financial institutions and needy small business owners come on one single platform.

You can Download Mudra application Form

 

Official MUDRA Website

Mudra Loan Yojana Interest Rate

Many people have started inquiring about the Mudra Loan Interest. We have got some clarification on this, interest rate wont be fixed and would depend on the type of your business and the bank. Each bank will have their own criteria.

Government may give some subsidy on the interest but the percentage is still not declared. Details on this could be found more on the official site http://www.mudra.org.in/

We have just heard that corporation bank has offered Mudra Loan at interest rate of 11-12%.

How to apply Mudra Loan

There is no formal or structured way of apply Mudra Loan. You will have to approach all the banks listed in this blog and give them the detailed description of your business. Then will ask to to fill the Mudra form. If you already have a current account in that bank then it will help your application to process quickly. If you need any equipment for your business please carry the invoice for the same. This is a collateral free loan so if you have a good credit history then it would help. Please take the acknowledgement slip with you for reference.

Mudra Loan Yojana in SBI

Government has decided to provide loan under Mudra Yojana through SBI from September 25 2015  onwards. Forms of Shishu,tarun and Kishore have already been launched. Under Shishu scheme you could avail loan upto rs 50,000 only. Seems like the first drive of Mudra Bank Yojana in SBI would attract very basic loan ie upto rs 50 thousand only.

Update

26/09/2015

Each Bank has been given the target to give loan under this yojana. It is been estimated that each bank unit should give loan to around 25 business units. This is an average figure and cities with more population will get higher number of loans.

27/07/2015

In an event organised FM said that the Mudra Loan Yojana is going to help small entrepreneur and eventually would lift Indian economy. This will directly and indirectly create lakhs of jobs.

01/10/2015

Gurgaon business men have untill now received around rs 14 crore loan. Around 1400 people have benefited from this scheme.

02/12/2015

Narendra Modi had said that Modi Mudra Loan yojana launched is only for small business and rich people cannot avail it. He is still not happy with the way mudra loan has been disbursed.

18/01/2015

Rs 50,000 crore have already been given to small business owners in India. Most of these loans have been given in rural areas.

20/01/2015

SBI have launched an initiative and in west Bengal and given Shishu loan to women who owns small Business.  As per the news the number of women given loan is 80.

30/01/2016

As per report from The Hindu Newspaper almost 31 thousand have been given loans under this flagship scheme. They also said that most of the small business are not aware about it.

02/02/2016

Recently Launched Start up India Stand Up India scheme would be aligned with Mudra yojana. So that Start ups has the access for government aided Loans.

20/03/2016

Chhattisgarh Government has claimed to disburse Rs.1800 Crore.

15/08/2017

PM Narendra Modi from red fort claimed that around 8 cr people have already availed this government business loan.

09/01/2017

Government to focus more on giving loans to starts up using this scheme for self employment generation.  It had been hard for modi government to generate new jobs and this scheme can be their face saver.

30/01/2018

President Ramnath Kovind have said in parliament that around 10cr people have been benefited from this scheme until now.

29/05/2018

PM Modi in his #MudraKiBaatPMKeSath said that around 6 lakh crore mudra loan have been sanctioned to around 12 crore business in India in last 4 years.

2/8/2018

As per latest reports, this scheme has helped as many as 3.49 crore new businesspersons. From the inception of this scheme till today, 12.27 crore credits have been sanctioned under this scheme. Reports suggest that till July 2018, this program offered credit to as many as 61.12 crore recipients.

Mudra Loan Complaint Office (Helpline, Toll Free, Customer care) Numbers

I have got a lot of people inquiring about the complaint office of Mudra loan Yojana. Please find the toll free number on which you can call and file your complaint. Please provide them detailed information and ask them for the complaint id

 

Banks offering Mudra Loan

Sno Mudra Loan Banks Interest Rate
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 & 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
11 Syndicate Bank Not yet Known
12 Punjab & 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 rate are subject to change without notice from banks

Mudra Loan Card

In essence, on one hand when the card acts as a credit card with a pre-approved loan amount, it also acts as a debit card, allowing ATM withdrawals.

Here is a quick look at how the Mudra Card looks like. This is just the approved design by DFS, Gol:

The Mudra Card will work with RuPay platform and can be used at PoS or Point of Sales. Thus the card will allow users to:

  • Withdraw cash from ATMs
  • Swipe the card at PoS.
  • Can be used as a credit card to avail the overdraft facility.

As of now, only a few banks have managed to jump onto the bandwagon of Mudra Card and it is expected that more and more banks will be joining in quickly. As of now the following banks have come up with Mudra Card:

SNo Bank Name
1 Corporation Bank
2 Punjab National Bank
3 Allahabad Bank
4 Kotak Mahindra Bank
5 Canara Bank
6 Axis Bank
7 State Bank of India
7 Vijaya Bank

Mudra Bank Loan For Women  SC ST and OBC

Government have clarified that women SC ST and OBC Category would be preferred while giving loans under this scheme.  However there is no reservation as such even the criteria of preference has also been not disclosed. We are waiting to consolidate the data which may prove this. You will have to fill this information while filling Mudra Loan form.

Mudra Loan Eligibility Criteria

This loan is only for small businessmen. There is no exact criteria as such. But one thing is for sure you wont get loan if you have a high turnover. One more thing this loan is not for educational purpose, you cannot get this loan for buying a house. You can get a vehicle loan for buying commercial vehicle but not personal. As such all person above 18 years age can apply for Mudra Loan.

These are the list of business for which Mudra Loan cannot be taken.

Sno Mudra Loan Cannot be taken for
1 Personal Requirement
2 Educational Purpose
3 Buying Personal Car or Bike
4 Rich Businessman

Mudra loan vs Personal loan

Mudra loan Personal loan
This type of loan is an entire government administered and approved scheme. So it is safe and secure form of taking credit. This type of loan is given by both government and private financial institutions.
One must have a genuine business plan for getting Mudra loan. No business plan is needed to get personal loans. Only a justifiable reason is required.
This loan is issued through Mudra credit card with a pre assigned credit limit. There is no such issue of separate credit card.
Repayment tenure is as high as 7 years. Repayment tenure is less.

QUICK LINKS

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PMMY REPORTS

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DOCUMENTS

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EVENTS GALLERY

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REGISTERED AND CORPORATE OFFICE
MSME DEVELOPMENT CENTRE, C-11, G-BLOCK, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI – 400 051

PMMY Toll Free Numbers

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Bank's Nodal Officer - PMMY

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MUDRA Nodal Officers

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MUDRA Officers - Mumbai

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PMMY Mission office Contact Details

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MUDRA FAQs-
MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution beingset up by Government of India for development and refinancing micro units enterprises. It 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.
The biggest bottleneck to the growth of entrepreneurship in the Non–Corporate Small Business Sector (NCSB) is lack of financial support to this sector. More than 90% of this sector does not have access to formal sources of finance. GoI is setting up MUDRA Bank through a statutory enactment for catering to the needs of the NCSB segment or the informal sector for bringing them in the mainstream. Pending enactment of an act for MUDRA Bank, a Non Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of SIDBI.
MUDRA would be responsible for refinancing all Last Mile Financiers such as Non-Banking Finance Companies, Societies, Trusts, Section 8 Companies [formerly Section 25], Co-operative Societies, Small Banks, Scheduled Commercial Banks and Regional Rural Banks which are in the business of lending to micro/small business entities engaged in manufacturing, trading and services activities. MUDRA would also partner with State/Regional level financial intermediaries to provide finance to Last Mile Financier of small/micro business enterprises.
Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products / schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to. The financial limit for these schemes are :-

  • 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

MUDRA’s delivery channel is conceived to be through the route of refinance primarily to Banks/NBFCs/MFIs. At the same time, there is a need to develop and expand the delivery channel at the ground level. In this context, there is already in existence, a large number of ‘Last Mile Financiers’ in the form of companies, trusts, societies, associations and other networks which are providing informal finance to small businesses.

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.
Yes, MUDRA will be extending refinance support to RRBs for enhancing their liquidity.
MUDRA is a refinancing agency which will extend its funds to Last Mile Financiers to enable them to reach out to the sector. Access to finance in conjunction with rational price is going to be the unique customer value proposition of MUDRA. It will use a variety of innovative financing means including technology to bring down the cost of funding for the ultimate borrower.
MUDRA loan is available through Banks/NBFCs/MFIs for such activities. All kind of manufacturing, trading and service sector activities can get MUDRA loan. Loans are categorised into Shishu, Kishor and Tarun. These products have been designed to cater to customers operating at the lower end of the enterprise spectrum. The loans will be extended through MFIs, NBFCs, Banks etc.
MUDRA loans are available in three categories. For small business, loans upto  50000/- is available under the 'Shishu' category and beyond  50,000 and up to  5 lakh under the 'Kishor' category. It also offers loans beyond  5 lakh and up to  10 lakh under the Tarun category. Depending on the nature of business and project requirement you can access finance from one of the intermediaries of MUDRA as per the norms.
Food Processing is an eligible activity for coverage under one of the MUDRA schemes. You can avail of assistance under MUDRA schemes for food processing from any financing banks/MFIs/NBFCs.
You can avail assistance under the ‘Shishu’ category through any banks/MFIs operating in your region, for setting up your own enterprise.
MUDRA operates a special refinance scheme for women entrepreneurs; viz; Mahila Uddyami Scheme. Assistance will be provided under all three groups, viz. ‘Shishu’, ‘Kishor’ as well as ‘Tarun’. A interest rebate of 25 bps is available for women borrowers availing of loans from MFIs/NBFCs.
MUDRA operates a special refinance scheme for traders and shopkeepers. You can avail the facilities under the scheme as per your requirements from any banks/MFIs/NBFCs in the area.
You can avail assistance under the 'Shishu' category through any banks/MFIs operating in your region for setting up your own enterprise.
Pradhan Mantri Mudra Yojana (PMMY) loans will be extended by all Public Sector Banks such as PSU banks, Regional Rural Banks (RRBs), Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions and Non Banking Finance Companies. All loans sanctioned on or after April 08, 2015 upto a loan size of  10 lakh for non farm income generating activities will be branded as PMMY loans.
Monitoring of PMMY progress at the State level will be done through SLBC forum and at National level by MUDRA/Department of Financial Services, Government of India. For this purpose, MUDRA has developed a portal, wherein the banks and other lending institutions directly feed their achievement details which is consolidated by the system and reports are generated for review.
Pradhan Mantri Mudra Yojana is a Government of India scheme, which enables a small borrower to borrow from banks, MFIs, NBFCs for loans upto  10 lakh for non farm income generating activities. Generally, loans upto  10 lakh issued by banks under Micro Small Enterprises is given without collaterals.
Carpentary and RO water plant installation, on a business mode, are eligible activities under MUDRA loan, if the loan amount is below  10 lakh. The primary requirement for availing a MUDRA loan is to be a income generating activity under manufacturing, processing, trading and service sector and the loan amount is below  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.
There is no subsidy for the loan given under PMMY. However, if the loan proposal is linked to some Government scheme, wherein the Govt. if providing capital subsidy, it will be eligible under PMMY also.
MUDRA which stands for Micro Units Development and Refinance Agency Ltd is a refinance agency and not a direct lending institution. MUDRA provides refinance support to its intermediaries viz. Banks, Micro Finance Institutions and NBFCs, who are in the business of lending for income generating activities in the non farm sector in manufacturing, processing, trading or service sector and who in turn will finance the beneficiaries.
MUDRA Card is an innovative credit product wherein the borrower can avail of credit in a hassle free and flexible manner. It will provide a facility of working capital arrangement in the form of CC/OD to the borrower. Since MUDRA Card will be RuPay debit card, it can be used for drawing cash from ATM or Business Correspondent or make purchase using Point of Sale (POS) machine. Facility is also there to repay the amount, as and when, surplus cash is available, thereby reducing the interest cost.
Yes. MUDRA Yojana is aimed at supporting all kind of income generating activities under manufacturing, processing, trading and service sector. Assistance can be availed under Micro Credit Scheme through any of the Micro finance institutions/Banks operating in the area.
The terms and conditions of the loan will be governed by the rules of the lending institution and the broad guidelines of RBI. The guidance regarding the documents needed may be obtained from any of the lending institutions in your locality.
Any grievance against non consideration of MUDRA loan can be registered with the higher authorities in the respective Bank like Regional Manager/Zonal Manager of the Bank, provided there is any lapse from the bank officials in sanctioning the loan.
As per the recommendations of the Working Group constituted by RBI for reviewing the Credit Guarantee Schemes for Micro Small Enterprises and accepted by RBI, Banks have been mandated not to insist for collateral security in the case of loans upto 10 lakh extended to the units in the Micro Small Enterprises sector.
Yes. In respect of Shishu category, an one page application format has been designed which has been posted in MUDRA website. In respect of Kishor and Tarun category, a 3 page indicative application format has been designed and the same is also posted in MUDRA website.
The terms and conditions of the loan will be governed by the rules and regulations of the lending institution and the broad guidelines of RBI. The lending institution will be processing the loan request, based on the merits of the proposal only. The loan amount will be decided by the requirement of the proposed income generating activity. The repayment terms will be governed by the cash flow of the enterprise and the eligibility of the borrower will be decided by the norms of lending institutions.
Yes. Department of Financial Services (DFS) vide its letter dated May 14, 2015 have advised all PSBs, RRBs and Scheduled Cooperative Banks regarding roll out of PMMY and to cover all loans upto loan size of  10 lakh sanctioned on or after April 08, 2015 for income generation under PMMY. DFS have also been issuing various instructions including fixing of targets branch wise to the Head Offices of the Banks which has been advised to percolate the same to their zonal/regional/branch offices.
Loan disbursement under the yojana has commenced from April 08, 2015 all over the country through all Banks, including SBI.
Life insurance is not required for loans under PMMY.
PAN card is not compulsory to avail PMMY loans. However, the borrower may have to satisfy the KYC requirements of the financing institutions.
The interest rates are deregulated and the banks have been advised to charge reasonable interest rates within the overall RBI guidelines.
The matter may be escalated within the respective bank’s higher authority. The applicant can also approach another bank or NBFC/MFI operating in the area for the loan requirement.
Compliant against any bank branch can be registered with the Regional Office/Zonal Office/Head office of the respective bank. The details of the Grievance Redressal Mechanism of each bank will be available at the Bank branch.
Any Indian Citizen, who is eligible to avail of loan and has a business plan for income generating activity can avail of MUDRA loan. The loan proposal should be for setting up of a new/upgrading an existing Micro business enterprises in the manufacturing, processing, trading and service sector.
Generally, IT returns are not insisted for small value loans. However, the requirement of documents will be advised by the concerned lending institutions based on the policies framed.
For Shishu loans, normally 7 to 10 days is the turn around time for processing the loan proposals on receipt of complete information.
Any individual including women, proprietary concern, partnership firm, private limited company or any other entity are eligible applicant under PMMY loans.
MUDRA loans would be available for purchase of CNG Tempo/Taxi, in case the applicant intends to use the vehicle as public transport carrier.
Yes. The applicant can approach the branch and apply for the loan in the format being provided by the said lending institution. The terms and conditions of the loan will be governed by the policies of the lending institution, based on the broad guidelines of RBI. The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.
Yes. MUDRA loans are applicable for any activity which results in income generation. As Khadi is one of the eligible activity under Textile sector and in case MUDRA loans are taken for income generation, the same can be covered.

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