The Pradhan Mantri MUDRA Yojana (PMMY) was launched on April 8, 2015, for providing loans upto 10 lakh to the non-corporate, non-farm small/micro enterprises.

PMMY is a flagship scheme of Government of India to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them.

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ELIGIBILITY:   

Any Indian citizen who has a business plan for a non-farm sector income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than Rs 10 lakh can approach either a Bank, MFI, or NBFC for availing of Micro Units Development & Refinance Agency Ltd.

TYPES OF LOANS: 

Shishu : Covering loans upto 50,000/-
Kishor : Covering loans above 50,000/- and upto 5 lakh
Tarun : Covering loans above 5 lakh and upto 10 lakh

SECTORS COVERED: 

Land Transport Sector / Activity:  Purchase of transport vehicles for goods and personal transport such as auto rickshaw, small goods transport vehicle, 3 wheelers, e-rickshaw, passenger cars, taxis, etc.

Community, Social & Personal Service Activities: Saloons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shop, DTP and Photocopying Facilities, Medicine Shops, Courier Agents, etc.

Food Products Sector: Support would be available for undertaking activities such as papad making, achaar making, jam / jelly making, agricultural produce preservation at rural level, sweet shops, small service food stalls and day to day catering / canteen services, cold chain vehicles, cold storages, ice making units, ice cream making units, biscuit, bread and bun making, etc.

Textile Products Sector / Activity: To provide support for undertaking activities such as handloom, powerloom, chikan work, zari and zardozi work, traditional embroidery and hand work, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other textile non garment products such as bags, vehicle accessories, furnishing accessories, etc.

HOW TO APPLY:  

Borrowers, who wish to avail assistance under Pradhan Mantri MUDRA Yojana (PMMY), can approach the local branch of any of the financial institutions in their region; PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non Banking Finance Companies (NBFC).

Sanction of assistance shall be as per the eligibility norms of respective lending institution.

CHECK LIST: Documents required

• Proof of identity: Self attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aaadhaar Card / Passport / Photo Ids issued by Govt. authority etc.
• Proof of Residence: Recent telephone bill / electricity bill / property tax receipt (not older than 2 months) / Voter’s ID Card / Aaadhar Card / Passport of Individual / Proprietor / Partners Bank passbook or latest account statement duly attested by Bank Officials / Domicile Certificate / Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
• Applicant’s recent Photograph (2 copies) not older than 6 months.
• Quotation of Machinery / other items to be purchased.
• Name of Supplier / details of machinery / price of machinery and / or items to be purchased.
• Proof of Identity / Address of the Business Enterprise: Copies of relevant Licences / Registration Certificates / Other Documents pertaining to the ownership, identity of address of business unit, if any
• Proof of category like SC / ST / OBC / Minority etc.

Note : For all PMMY loans, the following are to be noted; No processing fee,No collateral, Repayment period of loan is extended up to 5 years, Applicant should not be defaulter of any Bank / Financial Institution.