Mudra Loan Eligibility PMMY
Published on May 31, 2020
Eligibility criteria to avail Mudra Loan (Pradhan Mantri Mudra Yojana)
Pradhan Mantri Mudra Yojana. Objective; Eligibility; Purpose; Nature of Facility; Repayment; Margin; Security; Rate of Interest; The borrowers must be from the following Non-corporate Small Business Segment:
2. Partnership firms
3. Small manufacturing units
4. Service sector units
6. Fruit or vegetable vendors
7. Truck operators
8. Food service units
9. Repair shops
10. Machine operators
11. Small industries
12. Food processors
13. Other industries in rural and urban areas.
In addition to the above, individuals also require various business statements and a report projecting their revenue as part of the eligibility for MUDRA loan.
All Non-Corporate Small Business Segment (NCSBS) comprising of proprietorship or 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, food processors and others in rural and urban areas, are eligible for assistance under Mudra.
Bank branches would facilitate loans under Mudra scheme as per customer requirements. Loans under this scheme are collateral free loans.
Mudra Loans could be availed for the following
Vehicle loan: Commercial vehicle loan, Car loan and Two-wheeler loan
Business Installment Loan (BIL): Loan for working capital requirement, buying plant and machinery, renovating offices etc.
Business Loans Group Loans (BLG) and Rural Business Credit (RBC): We offer Drop line overdraft/Overdraft facility/Working capital loans
What interest rate is charged on MUDRA loan?
It depends upon many thinks like quantum of loan, internal rating and product even.
The different banks may have different rates but upto the amount of Rs 1 lac the GOI has advised the banks to cap the rates to 10% but there are banks (Inclusive of mine) which offer the loan upto 1.00 lac at 9.70% even and as of now.
The main objectives of Mudra are as follows.
1. Regulating the borrower and lender of microfinance and forging a stability in the sector through inclusive participation.
2. Extending credit and finance to support microfinance institutions (MFIs) and agencies that lend money to self-help groups, small business, traders, and individuals.
3. Registering all MFIs and putting in place an accreditation and performance rating system for the first time. It will help the last-mile borrowers to evaluate and approach MFIs that best meets their requirements and whose records, as a lender, are the most satisfactory. Such a measure will also introduce competitiveness among the institution. The borrower will be the ultimate beneficiary.
4. Providing structured guidelines for borrowers to avoid business failures, or adopt timely corrective measures. Mudra will also help to lay down the acceptable procedures and guidelines to be followed by lenders for recovering money from defaulters.
5. Developing standardised covenants that would become the backbone of the last-mile business in future.
6. Introducing proper technologies to assist swift lending and monitoring of the disbursed money.
7. Building a stable framework under the PMMY to develop an efficient last-mile credit deliver system for small businesses.
What is Mudra?
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.
Rate of Interest
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.
Here are some points that ideated the setting up of Mudra.
• PMMY is expected to benefit over 58 million small business owners and entrepreneurs in the country. More than 120 million people are employed in this sector and they mostly come from the underprivileged sections of the society.
• Most of the small business owners have always remained beyond the ambit of organised and mainstream bank credit. This is because products and services of most banks and financial institutions mostly target secured businesses that can afford to pay a higher rate of interest. PMMY attempts to change the trend.
• While institutional finance was always relevant to small businesses, inadequate corpus and unorganised credit management, failed to reach it to eager entrepreneurs. Mudra is backed by a dream to fulfil the aspirations of many young and budding entrepreneurs spread beyond the big metros.
• Repayment has always been a major concern for institutional lenders shying away from extending credit to small entrepreneurs in semi-urban and rural areas. But Mudra promises to assure the lenders on this front and help both banks and MFIs, and small business owners come on a common platform.
What are Micro Units?
Micro Units Development and Refinance Agency Bank has been set up by the Indian Government to fulfil all the funding needs of the non-corporate small business. The responsibility of Micro Units Development and Refinance Agency Bank is to prepare and launch the policy guidelines and registration and regulation of Micro Finance Institution entities. They are also responsible to run a credit guarantee scheme and create a good architecture to serve micro business by offering financial assistance.
Pradhan Mantri Mudra Yojana is a new scheme under Micro Units Development and Refinance Agency for developing and refinancing activities that are relating to micro units. This scheme was announced while presenting the budget for the 2016 financial year. The main purpose of this loan is to provide funds to non-corporate small business sectors.
Documents Required for Pradhan Mantri Mudra Yojana
• Mudra application form
• Vehicle loan application form
• 2 passport size colour photographs
• Photo Identity proof
• Address proof
• Income proof
• Bank statement (last 6 months)
Business Installment Loan
• Mudra application form
• BIL application form
• Photo identity proof
• Address proof
• Establishment proof
• Bank statement (last 6 months)
• Ownership proof of residence/office
• Proof of continuity of business
• Proof of qualification
• Trade references
• 2 years ITR
• CA certified financials
Business Loans Group and Rural Business Credit
• Mudra application Form
• BIL/RBC application form
• Photo identity and age proof
• Address proof
• Ownership proof of residence/office
• Business vintage proof
• Bank statement (last 12 months)
• Income tax return (last 2 years)
Critics of the scheme say that too many best practices in loan origination have been neglected while authorising and disbursing loans. Earlier this year, the CBI registered a case against a former official of Punjab National Bank for alleged abuse of official position in sanctioning and disbursing 26 Mudra loans amounting to ₹65 lakh. Even if loans are sought by business owners genuinely seeking growth and bankers disburse them with an eye on economic development, ensuring repayment is still a challenge. First, these loans are unsecured — a collateral that could protect the interests of the bank is not required, unless an asset that is purchased can itself serve as collateral.
The scheme is meant for those who need small amounts, but do not have access to such funds, but the very nature of the business of such borrowers is susceptible to volatility and annual cycles, not to mention the itinerant ways of some business owners, such as vegetable vendors. They may choose one location for their place of business on a day, and another elsewhere in their city the next day. Further, the public banking system may not be staffed for work this may entail. When it comes to collection, bank staff may choose to go after one loan with outstanding of ₹10 lakh, for example, rather than 10 loans of ₹1,00,000 each.
Aam Admi Bima Yojana (AABY) - Scheme Details,
My Adsense Earnings not Updating in my Earnings Page - Top Reasons,
Atal Pension Yojana (APY),
Ayushman Bharat Card- Scheme Details, Eligibility, Registration,
Ayushman Bharat Eligibility Criteria,
Ayushman Bharat Registration Apply Online,
Ayushman Bharat Scheme in Kerala,
Ayushman Bharat Yojana Card Hospital List 2019 2020,
Ayushman Bharat Yojana Get Free Registration 2019 2020,
Boxing Day Stickers for Whatsapp and Facebook 2018,
Buy Kerala Lottery Online thru Speed Post or Courier - Purchase Lotteries,
Chardham-Highway Project - Status, Completion, UPSC, PIB,
Which Bank Gives the Cheapest Personal Loan in India?,
LIVE : 10.2.20 Christmas New Year Bumper 2019 2020 BR 71 Kerala Lottery Results,
Christmas Stickers for Whatsapp and Facebook 2019 - Apps on Google Play,
Can we get a Darshan ticket in Tirupati? Can we go directly in Tirumala?,
Guidelines For Home Quarantine India : Prevention of CoronaVirus COVID-19 Virus,
Happy Birthday Stickers for Whatsapp and Facebook,
Herbal Sanitizer Formulation : Prevention of COVID-19 Coronavirus,
How to Book Ticket for Arjita Brahmotsavam Online for Tirumala Tirupati Devasthanams,
How to Book Ticket for Kalyanotsavam Online for Tirumala Tirupati Devasthanams,
How to Book Ticket for Sahasra Deepalankara Seva Online for Tirumala Tirupati Devasthanams,
How to Book Ticket for Special Entry Darshan Online for Tirumala Tirupati Devasthanams,
How to Book Ticket for Darshan Online for Tirumala Tirupati Devasthanams,
How to Book Accommodation Rooms Online for Tirumala Tirupati Devasthanams,
How to Book Ticket for Unjal Seva Online for Tirumala Tirupati Devasthanams,
How to Book Ticket for Vasantotsavam Online for Tirumala Tirupati Devasthanams,
How to Book Ticket for Vishesha Pooja Online for Tirumala Tirupati Devasthanams,
How To Make Sanitizer Spray : Prevention of COVID-19 Coronavirus,
How to Register Sabarimala Virtual Queue Q 2019 2020
LIVE Kerala Lottery Result : Sthree Sakthi Lotteries Today,
LIVE Kerala Lottery Result : Win Win Lotteries Today WinWin,
Pradhan Mantri Kisan Samman Nidhi - 2019 Eligibility Criteria,
PM Kisan Samman Nidhi Yojana 2019 Application Form PDF,
Malayalam Keyboard Typing for Whatsapp and Facebook: Manglish Typing,
Malayalam Stickers for Whatsapp - SMS, Quotes and Status,
Mudra Loan Eligibility PMMY,
Mudra Loan Interest Rate,
Chaitra Navratri 2020 Date in Indian or English Calendar, Colours List,
Navratri 2020 Date and Colours List : October 17 to 26 Each Day Colour,
Happy New Year 2019 Whatsapp and Facebook Stickers,
Happy New Year 2020 Whatsapp and Facebook Stickers - Apps on Google Play,
Payment Cancelled - You have cancelled the Payment,
Payment Failed - Your Payment for the Lottery is Failed,
Payment Successful - Thanks for making the payment,
Personal Loans for Self Employed With No Proof of Income in India,
Pradhan Mantri Awas Yojana (PMAY) Application Status,
PMJAY CSC Cloud Logout : pmjay.gov in : PMSYM,
Pradhan Mantri Kaushal Vikas Yojana (PMKVY),
Pradhan Mantri Awas Yojana Gramin List 2018,
Pradhan Mantri Ayushman Yojana PMJAY 2019 2020 Sarkari DNA,
Pradhan Mantri Kisan Samman Nidhi Yojana - PM-Kisan Scheme,
Pradhan Mantri Ujjwala Yojana Form in Hindi and English,
Preparation of a Poly Herbal Hand Sanitizer : Prevention of COVID-19 Coronavirus,
Private Accommodation in Tirumala Online Booking - Accommodations, Food and Darshan,
Happy Republic Day Stickers 2020 for Whatsapp and Facebook,
Sabarimala Accommodation- Online Booking, Rooms at Pampa Sannidhanam,
Sabarimala Q Darshan Virtual Queue Online Booking 2019 2020,
Sabarimala Temple Opening Closing Dates 2019 2020 - Temple Calendar,
Sabarimala Vazhipadu Rates List, Online Booking Vazhipadukal
Sabarimala Virtual Q Booking Opening Date 2019 2020,
Sabarimala Virtual Queue Booking Online 2019 2020,
Happy Sankranti, Pongal, Lohri Greetings 2020 for Whatsapp,
Statue of Unity - Images, Cost, Location Map, Construction,
Statue of Unity - Tickets and Booking Online,
Sukanya Samriddhi Yojana Post Office,
Thiruvairanikkulam Temple Virtual Queue Booking Online 2019 2020 - Book Now,
Tirumala Accommodation Online Booking Srinivasam - Accommodations, Food and Darshan,
Tirumala Darshan Ticket Counters in Tirupati Online Booking,
Tirumala Room Booking Online Near Temple - Accommodations, Food and Darshan,
Tirumala Seva Availability Chart - Seva | Process | Timings | Dress Code,
Tirumala Suprabhatam Darshan Online Booking : Suprabatha Seva and Online Booking Date,
Tirumala Suprabhatam Dress Code - Seva | Process | Timings | Dress Code,
Tirumala Suprabhatam Seva Tickets Price - Seva | Process | Timings | Dress Code,
Tirupati Darshan Without Online Booking : Steps to get the Tickets,
Top 10 Apps, Trends, Free Games, Popular Apps and Books,
TTD Kalyanam Tickets Availability Chart 2020 - How to Book Tickets for Kalyanotsavom,
TTD Kalyanotsavam Tickets Availability Chart 2020 - Seva | Process | Timings | Dress Code,
TTD Seva Lucky Electronic Dip Registration Results for Suprabatha Seva and Online Booking Date,
TTD Suprabhata Seva Tickets Availability 2020 : Suprabatha Seva and Online Booking Date,
Upcoming Infrastructure Projects by Modi in India 2019 2020,
Happy Valentines Day Stickers 2020 for Whatsapp and Facebook,
Where to Get 300 Rs Ticket In Tirupati - Steps to get the Tickets,
LIVE Kerala Lottery Result : Akshaya Lotteries Today,
LIVE Kerala Lottery Result : Karunya Lotteries Today,
LIVE Kerala Lottery Result : Karunya Plus Lotteries Today,
LIVE Kerala Lottery Result : Nirmal Weekly Lotteries Today,
Kerala Lottery Sambad Result,
Kerala Lottery Tickets Results Today Live,
Kerala Lottery Unsold Tickets Number Today
Kerala Lottery Winning Number Tricks,
Kerala Lottery Yesterday Results Numbers,
Kerala State Lotteries Result Live Today,
Lottery Result Today Kerala Lottery Result Today,
www.Kerala Lottery Result Today Last 3 Numbers,
Kerala Lottery Result Today Guessing Numbers,
Kerala Lottery Guessing Today Last 3 Number,
2019 2020 Kerala Lottery Result Chart Download Weekly,
Kerala Lottery Results Today Live Results Today,
LIVE : 2.6.20 Pournami RN 435 Kerala Lottery Results,
LIVE Kerala Lottery Result : Pournami Lotteries Today,
LIVE: Kerala Lottery Result 2.6.20 Pournami RN 435 Today,
Kerala Lottery Daily Result 2.6.20 Pournami RN 435,
Ennatha Kerala Lottery Result Malayalam Bhagyakuri,
Innathe Innalathey Kerala Lottery Result,
Kerala Lottery Aaj Ka Result Tarika Number Chahiye,
Kerala Lottery Agency,
Kerala Lottery Agent Commission Prize Tax as on March 2020,
Kerala Lottery A to Z,
Kerala Lottery Bhagyakuri Results Today Live,
Kerala Lottery Confirm Number Winning and Guessing,
Kerala Lottery Evening Result Live Today,
Kerala Lottery First Prize Number List Today,
Kerala Lottery Innathe Phalam,
Kerala Lottery Online Results Today Live