SBI provides a business loan of up to Rs 10 lakh for a five-year term under the PM MUDRA Yojana (PMMY) plan. The PM MUDRA (Micro Units Development & Refinance Agency) Yojana is an initiative launched by the Government of India to promote and refinance micro unit firms. SBI PMMY loan revenues can be used by businesses in the manufacturing, trading, and service sectors, as well as agricultural operations, to expand capacity, modernize, and for other commercial purposes. SBI also provides rapid access of loans of up to Rs. 50,000 through its SBI e-Mudra Loans program.
What are the benefits of the Pradhan Mantri Mudra Yojana?
PMMY strives to help MSEs enter the formal financial system and grow their enterprises. Some of the advantages of PMMY are: The loans are collateral-free and do not include any processing or upfront fees. Loans are accessible at reasonable interest rates, as per the lender’s policy. The loans are divided into three categories based on the MSEs’ stage of development and finance needs: Shishu (up to Rs. 50,000), Kishor (Rs. 50,001 to Rs. 5 lakh), and Tarun (Rs. 5 lakh to Rs. 10 lakh). Loans can be utilized for a variety of objectives, including working capital, the purchase of machinery, equipment, and raw materials. Loans are available through a variety of channels, including public and private sector banks, regional rural banks, cooperative banks, microfinance organizations, and non-banking financial companies. The loans are monitored by udyamitra, a web-based site where borrowers can apply and track their loan status.
Who is eligible for the Pradhan Mantri Mudra Yojana?
Any individual or company involved in non-farm income-generating activities is eligible to apply for PMMY loans. Here are some of the business loan eligibility criteria: The candidate must not be a defaulter with any bank or financial institution and have a good credit history. The applicant should have the required skills, experience, or expertise to carry out the proposed activity. The candidate must have appropriate proof of identification and address. The applicant should provide a business plan or project report for the planned activity.
Objectives of the Pradhan Mantri Mudra Yojana
- Financial inclusion entails providing access to financial services to underserved and unbanked segments of society, particularly small and micro-enterprises.
- Encourage self-employment and job creation by supporting small enterprises and entrepreneurial ventures.
- Economic growth: Encourage grassroots economic development by assisting small enterprises and raising incomes in both rural and urban communities.
- Women’s and marginalized group empowerment: Targeted financial support should be provided to women, SC/ST communities, and other marginalized groups.
- Reduce dependency on informal credit by providing reasonable and easily available formal credit choices.
How can I apply for Pradhan Mantri Mudra Yojana?
The PMMY application process is easy and straightforward. Here are the steps:
- Click “Apply now” on the official PMMY or Udyamitra website. Choose the loan category (Shishu, Kishor, or Tarun) and provide your name, address, mobile number, email address, PAN card, and Aadhaar number. Upload scanned copies of papers such as proof of identity, proof of address, proof of business entity, business plan, project report, and so on. Submit the application and record the reference number for future reference.
- The application will be routed to the selected lender’s local branch for verification and approval. The lender will contact the applicant and do due diligence, including a site visit and a credit appraisal. If authorized, the loan amount will be transferred to the applicant’s bank account within a certain timeframe.
Documents Required for the Pradhan Mantri Mudra Yojana:
The Pradhan Mantri Mudra Yojana (PMMY) is a government initiative that offers financial support to small enterprises. To apply for a Mudra loan, the following documents are required:
- Identity proof, such as an Aadhaar card, voter ID, Passport Address evidence, such as an Aadhaar card, voter ID, or driver’s license.
- Documents for business registration include MSME registration, GST registration, and store and establishment registration.
- Income tax returns over the prior two years.
- A comprehensive business plan that includes the product or services offered, marketing strategy, financial predictions, and repayment plan. Passport-size pictures
- The documentation required can vary depending on the bank, loan amount, and other variables.