Pradhan Mantri Mudra Yojana: Mudra Loan Online Process and Eligibility Details

On 8th April 2015, the Hon’ble Prime Minister Narendra Modi launched the Pradhan Mantri Mudra Yojana scheme  for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises because in any economy, these institutions forms the backbone of the Indian economy. This scheme mainly aims to attain the holistic development of the above mentioned organisations in an inclusive and sustainable manner by supporting and promoting partner institutions and creating an ecosystem of growth for micro enterprises sector. This is one of the most important topic that is often asked in exams and from interview point of view as well this is one such topic which you cannot leave at any cost. In this article, we will be discussing this topic in detail.

Background

Finance Minister Shri Arun Jaitley, presented the Union Budget  for FY 2015-16, and announced the formation of MUDRA Bank and after the announcement, in March 2015 under the companies Act 2013, MUDRA was registered as a Company and as a Non Banking Finance Institution with the RBI on 07 April 2015. On 8th April 2015, MUDRA was launched by the Hon’ble Prime Minister Shri Narendra Modi at a function held at Vigyan Bhawan, New Delhi.

Initially, the Micro Units Development & Refinance Agency Ltd (MUDRA) was set up by the Government of India (GoI) as a wholly owned subsidiary of Small Industries Development bank of India (SIDBI) and 100% capital was contributed by SIDBI. Currently, the authorized capital of MUDRA is 1000 crores and paid up capital is 750 crore, fully subscribed by SIDBI. More capital is expected to enhance the functioning of MUDRA.

SIDBI holds the responsibility for developing and refinancing all Micro-enterprises sector by supporting the finance Institutions which are in the business of lending to micro / small business entities engaged in manufacturing, trading and service activities. MUDRA Organizations would partner with Banks, MFIs and other lending institutions at state level / regional level to provide micro finance support to the micro enterprise sector in the country.

At the bottom of the pyramid, Micro Finance holds the responsibility to provide income generating opportunities to the people by covering a range of services which include, credit facility and many other credit plus services, financial literacy and other social support services.

Roles and Responsibilities of MUDRA

The main objective of MUDRA was to develop the micro enterprise sector in the country by extending various support including financial support in the form of refinance, so as to achieve the goal of funding the unfunded. On 2 March 2015, The GOI had released the Press release that it has laid down the roles and responsibilities of MUDRA.

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It was decided by the GOI that MUDRA will provide refinance support and will  monitor the PMMY data by managing the web portal. It will also facilitate offering guarantees for loans granted under PMMY and take up other activities assigned to it from time to time and since then, MUDRA has been carrying out these functions over the last one year.

Types of Loan provided by MUDRA Bank

There are three types of loans which are provided by MUDRA Bank and they are as given below:

• MUDRA SHISHU Yojana-  Covering loans upto  50,000/-
• MUDRA KISHOR Yojana- Covering loans above  50,000/- and upto 5 lakh
• MUDRA TARUN Yojana- Covering loans above  5 lakh and upto 10 lakh

How To Apply?

• First step is to visit their nearest commercial or private bank.
• Then the applicant need to put forth the business idea/plan
• Finally, you can submit duly filled loan application form
• Some documents which need to be submitted are: Identity proof, address proof, company address proof, company identity proof, caste certificate, balance sheets, IT returns, sales tax returns of the last three years, and other machinery details
• Make sure to complete all further formalities and procedures by the bank
• After the above-mentioned steps are done, your documents will be verified
• Finally, the loan will then get sanctioned

Eligibility Criteria:

There are different eligibility norms in respect of the partner lending institutions for the purpose of availing refinance from MUDRA for on-lending to micro units in manufacturing, trading and service sectors in rural and urban areas. We are providing you the PDF which you can download and learn more about it. 

Click Here To Download Eligibility Criteria