alexa

Search in Indianmoney's WealthPedia

Home Articles Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana

IndianMoney.com Research Team | Posted On Tuesday, October 16,2018, 06:38 PM

5.0 / 5 based on 1 User Reviews

Pradhan Mantri Mudra Yojana

 

 

What is Pradhan Mantri Mudra Yojana?

This is a scheme under the Micro Units Development And Refinance Agency (MUDRA), which helps improve prospects relating to micro units.  This scheme takes ahead the works of the previous government in the area of small and medium enterprises development. The scheme was announced by the Union Government during the financial year 2016.

Want to know more on Investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

You May Also Watch:

Iframe Content

Pradhan Mantri Mudra Yojana

Purpose of Pradhan Mantri Mudra Yojana:

The purpose of the Mudra scheme is to provide funds to the non corporate small business sector. The government has identified there’s a shortage of funds in the small and medium scale businesses in India. There are three categories under this scheme bearing in mind the stages of growth and funding requirements of the beneficiary micro units. They are:

  • Shishu: covering loans up to Rs 50,000
  • Kishore: covering loans up to Rs 5,00,000
  • Tarun: covering loans up to 10,00,000

Banks facilitate loans under the Mudra Scheme as per customer requirements. The loans under this scheme are collateral free loans.

Documents required for Mudra Loans:

If the borrower requires financial help for purchasing a vehicle under this scheme, he must submit the following documents:

  • Pradhan Mantri Mudra Yojana application form
  • Vehicle loan application form
  • Photo ID proof, Income proof and address proof
  • Last 6 months bank statement.

If the borrower wishes to take loans for his business under this scheme, he must submit the following documents:

  • Pradhan Mantri Mudra Yojana application form and business installment loan application.
  • Photo identity and address proof
  • Proof of establishment
  • Last 6 months  bank statement
  • Ownership proof or residential proof
  • Qualification proof
  • Trade references.

If the applicant applies for rural business credit under the Pradhan Mantri Mudra Yojana, he must submit the following documents:

  • Pradhan Mantri Mudra Yojana application form and business installment loan application form.
  • Photo identity proof, age proof and address proof
  • Ownership proof of residence or office
  • Business vintage proof
  • Last 12 months bank statement
  • Last 2 years income tax returns.

Mudra loan application form (important fields):

The following details must be filled in the application form of this scheme:

  1. Enterprise name or category to be mentioned for office use.
  2. Business information:
  • Name of the enterprise
  • Current business address
  • Telephone or mobile number
  • Email address
  • Proposed business activity
  • Date of commencement of business
  • Registration number
  • Registered office address
  • Social category which may be SC/ ST or OBC.

3. Information on the proprietor:

  • Name
  • Date of birth
  • Sex
  • Residential address
  • Mobile number
  • Academic qualification
  • Experience in years
  • ID proof and ID proof number
  • Address proof and address proof number
  • PAN card number or DIN number

4. Name of the associate concerns:

  • Name of the associate concern
  • Address of the associate concern
  • Bank details of the associate concern
  • Nature of the associate concern
  • Extent of interest as proprietor or partner, director or investor in the associate concern.

5. Extending banking or credit facilities:

The following details must be filled

  • Type of facility allowed
  • Limit availed
  • Outstanding amount
  • Security lodged
  • Asset classification status
  • Customer ID
  • Bank that the business is associated with.

6. The credit facility proposed, the amount, the purpose and the details of the security must be mentioned.

7. In case of working capital, the actual sales and projected sales information has to be clearly mentioned.

8. In case of term loans, the details of the machinery or equipment has to be provided. The required details on the machinery must be duly filled.

9. The past performance and the future estimate of sales, profit and capital must be mentioned.

10. Statutory obligations’ status must be mentioned. They are:

  • Registration under shops and establishment act.
  • Registration under MSME.
  • Drug license
  • Latest sales tax returns filed
  • Latest income tax returns filed
  • Any other statutory dues that is outstanding.

11. The final part is the declaration, which requires you to pin up 3 passport size photos along with the signature of the proprietor, partner or director.

Pradhan Mantri Mudra Yojana Eligibility Criteria:

The borrower must be from the following groups to avail this loan:

  • Proprietorship
  • Partnership firms
  • Small manufacturing units
  • Service sector units
  • Shopkeepers
  • Fruit or vegetable vendors
  • Truck operators
  • Food service units
  • Repair shops
  • Machine operators
  • Small industries
  • Other industries in rural and urban areas.

SEE ALSO: Personal Loan For Government Employees

Objective of Pradhan Mantri Mudra Yojana:

This scheme was designed keeping in mind certain objectives to be fulfilled during the implementation of the scheme. They are:

  • Laying policy guidelines for financing small enterprises.
  • To help small businesses prosper and grow
  • For assisting low income groups expand their business.
  • To provide lending preference to SC/ST
  • To regulate micro finance institutions
  • To create easy access to finance and banking.

Mudra loan pre closure charges and repayment schedule:

The MUDRA scheme is a loan that can be availed by an individual or owner of a small or medium level business. This type of loan is offered without any collateral. Before opting for it you must know a few details:

Maximum tenure of repayment:  you can repay the loan in 7 years. This is the maximum limit to repay the loan. You can opt for a maximum of 84 EMIs to repay the loan.

MUDRA Loan pre closure charges: the rules state that you can repay the loan anytime within the tenure. However, there is a small charge on pre payment. It will be levied uniformly to all who opt for pre-closure.

MUDRA card: it is a debit card issued against mudra loan account for the working capital portion of the loan. The card can be operated across the country for cash withdrawals and also to make payments.

MUDRA loan: the funds support different types of groups under the mudra scheme. The first is micro credit scheme for loans up to Rs 1 Lakh. The second is refinance scheme for commercial banks or regional rural banks or co-operative banks. The third is woman enterprise program and the fourth is securitization of loan portfolio.

MUDRA loan helpline number: to know more contact the MUDRA helpline number 1800 180 1111. To avail this loan all the guidelines and regulatory rules must be followed.

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Be Wise, Get Rich.

 

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.