Pradhan Mantri Mudra Yojana (PMMY) is a government initiative launched by the Government of India in April 2015 to provide financial support to small and micro enterprises, encouraging entrepreneurship and self-reliance. The scheme is implemented through MUDRA (Micro Units Development and Refinance Agency Ltd.), which refinances financial institutions lending to micro-enterprises.
Objectives:
- Financial Inclusion: Enable easy access to loans for small and micro-business owners.
- Employment Generation: Encourage entrepreneurship and self-employment opportunities.
- Support Small Enterprises: Boost small businesses, especially in non-agricultural sectors.
Key Features:
- Loan Amount: Loans up to ₹10 lakhs are provided without the need for collateral.
- Target Audience: Non-corporate small businesses, startups, artisans, shopkeepers, vendors, and others in rural and urban areas.
- No Processing Fees: Loans under PMMY have minimal processing fees.
- Repayment Period: Ranges from 3 to 5 years, with flexibility.
Loan Categories:
The loans under PMMY are categorized into three schemes based on the size of the funding required:
- Shishu: Loans up to ₹50,000 (for startups or new businesses).
- Kishore: Loans between ₹50,001 and ₹5,00,000 (for expanding existing businesses).
- Tarun: Loans between ₹5,00,001 and ₹10,00,000 (for well-established businesses seeking growth).
Eligible Activities:
- Small manufacturing units
- Service sector businesses
- Shopkeepers, traders, and vendors
- Agricultural activities (like equipment purchase)
How to Apply:
- Visit a bank, NBFC, or microfinance institution participating in the scheme.
- Submit the application form with the required documents, such as:
- Business plan
- Identity and address proof
- Proof of business activity
- The loan is approved based on the viability of the business.
Benefits:
- Encourages entrepreneurship among underserved sections of society.
- Promotes economic growth and job creation.
- No collateral requirement simplifies access to credit.
If you'd like to know how to apply or need guidance on documents, let me know!
PROCESS
1 . OPEN CHROME
2. PMKY
3.Click on the Link Given above(PMKY)
4. Check Your Eligibility
5. Fill The Forms
6. Go To Your Nearest Bank.
