Mudra Loan | Pradhan Mantri Mudra Loan Bank Yojana (PMMY) Details| Apply, Documents Required, Interest rates, Eligibility, Application Form, Government Business Loan
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
|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:
|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:
- 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.
- 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.
- 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.
- 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
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.
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.
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.
Gurgaon business men have untill now received around rs 14 crore loan. Around 1400 people have benefited from this scheme.
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.
Rs 50,000 crore have already been given to small business owners in India. Most of these loans have been given in rural areas.
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.
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.
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.
Chhattisgarh Government has claimed to disburse Rs.1800 Crore.
PM Narendra Modi from red fort claimed that around 8 cr people have already availed this government business loan.
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.
President Ramnath Kovind have said in parliament that around 10cr people have been benefited from this scheme until now.
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.
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.
Pradhan Mnarei Mudra Loan NPA :- It has been reported that this particular flagship scheme of modi have increased the NPA of banks. Banks are bleeding with NPA and if true this could still harm them and Indian Economy.
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:
|2||Punjab National Bank|
|4||Kotak Mahindra Bank|
|7||State Bank of India|
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|
|3||Buying Personal Car or Bike|
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.|