The Pradhan Mantri Mudra Yojana (PMMY) scheme was introduced by the Narendra Modi administration in 2015 to make micro-credit available to small-scale businesses with a credit limit of up to ten lakh rupees. Borrowers can apply for business loans ranging from Rs.50,000 to Rs.10 lakh under the PM Mudra Yojana, which is divided into three categories: Sishu, Kishor, and Tarun. Read below to check the detailed information related to the Pradhan Mantri Mudra Loan Yojana 2022 like Objectives, Features and Benefits, Eligibility Criteria, Application Procedures, PMMY Bank List, and much more.
Pradhan Mantri Mudra Loan Yojana 2022
PMMY offers three loan products: ‘Shishu,’ ‘Kishore,’ and ‘Tarun,’ each based on the stage of development and finance requirements of the micro-unit. Through PMMY’s simple finance initiatives, companies can borrow up to ten lakhs to satisfy their capital needs and operations costs. Mudra Loans are the name for these types of loans. The Pradhan Mantri Yojana was introduced to assist small businesses in growing and succeeding. Companies in both the profit and non-profit sectors can apply for a loan under this scheme, with a maximum credit amount of Rs.10 lakh available to help them get their business off the ground. The MUDRA, a subsidiary of SIDBI, supports intermediaries such as Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs in lending to non-corporate, non-farm small/micro-enterprises under this plan.
Objectives of Pradhan Mantri Mudra Loan Yojana
MUDRA loans can be used for a variety of purposes, including job creation and revenue generation. The following are the most common reasons for getting out Mudra loans:
- Shopkeepers, traders, vendors, and other service-related businesses can apply for a business loan.
- Loans for vehicles
- Mudra Loans are available to people who work in agri-allied non-farm income-generating businesses like poultry farming, beekeeping, pisciculture, and so on.
- Financing for small business equipment
- A Mudra Loan is available to anyone who utilizes tractors, tillers, or two-wheelers for commercial purposes.
- MUDRA cards can be used to get a working capital loan.
Mudra Scheme-Related Products
The Pradhan Mantri Mudra Loan is divided into three categories:
- Shishu Yojana: This Mudra Loan category is suitable for micro and small company entrepreneurs. One can apply for up to 50,000 in loans under this scheme. Shishu loans are for entrepreneurs who require a small amount of financing to get their firm off the ground. To get their loan application approved, applicants must show their company idea.
- Tarun Yojana: All small business owners who seek to expand their business can apply for a loan through the Tarun Yojana. Borrowers can apply for a loan of up to ten lakh rupees.
- Kishor Yojana: This category is for entrepreneurs who have already launched a firm and wish to grow it into a profitable venture. Applicants can apply for a loan of between 50,000 and 5 lakh rupees. Borrowers must fill out an application form and provide papers to demonstrate their organization’s current status to be considered for a loan.
|Scheme Name||Loan Amount|
|Shishu||Up to Rs.50,000|
|Tarun||Rs.5 lakh to Rs.10 lakh|
|Kishor||Rs.50,000 to Rs.5 lakh|
Benefits and Features of Pradhan Mantri Mudra Loan Yojana
Some of the key benefits and features of the scheme are as follows:
- Loans with no collateral
- Amount of loan: up to Rs. 10 lakhs.
- The loan is covered by the Government of India’s Credit Guarantee Schemes.
- Term loans, working capital loans, and overdraft facilities are all options
- Interest rates are low, and processing fees are considerably lower.
- Mudra loans are available to all non-farm enterprises, i.e., small or micro businesses that generate money.
- People belonging to the SC/ST category can also get Mudra loans with lower interest rates.
- Loans with lower interest rates for women entrepreneurs
- In both rural and urban locations, banking and financial services are available.
- Micro-small companies and start-ups can get financial support.
- Small business loans with reasonable interest rates are available.
- This program can benefit food vendors, merchants, and other small business owners.
- This program provides financial assistance to persons who do not have access to basic banking services.
- The government assumes the borrower’s credit guarantee, which means that if the borrower is unable to repay the loan, the government will be responsible for the loss.
- The scheme’s repayment duration can last up to seven years.
- The Micro Credit Scheme is available to people who want to earn money through micro-enterprise operations.
- Borrowers that are women are eligible for a loan with lower interest rates.
- Refinancing options are also available through certified lenders.
Eligibility for MUDRA Loans
Mudra loans are available to Indian nationals who have their business plans for the service sector, commerce, or industrial operations and require funds of up to Rs.10 lakh. Public and private sector banks, regional rural banks (RRBs), small finance banks (SFBs), and micro-financial organizations also offer it (MFIs). The applicants applying for Pradhan Mantri Mudra Loan Yojana 2022 must fulfill the following eligibility criteria:
|Minimum age||18 years|
|Maximum age||65 years|
|Security or collateral||No collateral or third-party security is required|
|Who can avail of a Mudra Loan||Loans can be availed by new and existing units|
|Institutions eligible to offer Mudra Loan||Public Sector Banks, Micro Finance Institutions, Private Sector Banks, and Regional Rural Banks|
MUDRA Loan’s Rate of Interest
The Mudra loan’s interest rate is determined by the individual’s profile. MUDRA loans are available from several banks in both the public and private sectors. All lenders follow a set of rules, and the final rate of interest at which a loan is given to an applicant is determined by the lender. This is done after thoroughly examining the applicant’s business requirements.
While filling up the application form for Pradhan Mantri Mudra Loan Yojana, some important documents will be needed by the applicants, make sure to keep them handy. The documents required for Pradhan Mantri Mudra Loan Yojana 2022 are as follows:
- Duly filled up the application form based on the loan category
- 2 passport-sized photographs of the applicant
- Any valid Identity Proof like Aadhaar card, driving license, PAN card, Voter’s ID card, passport, etc.
- Any valid Address Proof like Voter’s ID card, electricity bill, telephone bill, Aadhaar card, passport, etc.
- Proof of special category if applicable like SC, ST, OBC, Minority, etc.
- Bank statement of last 6 months
- Business address and tenure proof, if applicable
- Any other documents required by the bank or NBFC
- Last date of submission of claims under 2% interest subvention scheme shashi loans has been extended till 31st March 2022
Steps to Apply for Pradhan Mantri Mudra Loan Yojana 2022
Applicants need to follow the below-given steps to apply for the Pradhan Mantri Mudra Loan Yojana 2022:
- First of all, go to the official website of the Pradhan Mantri Mudra Loan Yojana 2022 i.e., mudra.org.in to download the application form or go to your nearest commercial or private bank.
- After getting the application form, fill in the application form with all the required details like name, contact number, address, Aadhaar details, etc.
- After that, attach all the required documents to the application form like Identity proof, address proof, balance sheet, company address proof, IT Returns, and other machinery details.
- Now, review and recheck the application form to avoid any mistakes.
- Submit the application form to the concerned department.
- Now, complete all the processes and formalities with the bank.
- After that, all your documents will be verified by the concerned banks.
- Finally, after all the verifications, the loan will get credited to the applicant’s account.
PMMY Portal Login
- First of all, go to the official website of the Pradhan Mantri Mudra Loan Yojana.
- The homepage of the website will open on the screen.
- Now from the homepage, go to the PMMY portal login option.
- A new page will open on the screen.
- Enter the login details like username and password in the application form.
- Now enter the captcha code present on the screen.
- After that, click on the login option
Banks and NBFCs that Provide Loans under PM Mudra Yojana
The following are the financial organizations that give MUDRA Loans as directed by RBI:
Public Sector Banks
|S. No.||Bank Name|
|1||Central Bank of India|
|2||Bank of Baroda|
|3||Bank of India|
|4||State Bank of India|
|5||Bank of Maharashtra|
Private Sector Banks
|S. No.||Bank Name|
|1||HDFC Bank Ltd.|
|2||City Union Bank Ltd.|
|3||Axis Bank Ltd.|
|4||Federal Bank Ltd.|
|5||Catholic Syrian Bank Ltd.|
|6||DCB Bank Ltd.|
Regional Rural Banks
|S. No.||Bank Name|
|1||Deccan Grameena Bank|
|2||Andhra Pragathi Grameena Bank|
|3||Chaitanya Godavari Grameena Bank|
|4||Madhya Bihar Gramin Bank|
|5||Saptagiri Grameena Bank|
|6||Bihar Gramin Bank|
|S. No.||Bank Name|
|1||Gujarat State Co-op Bank Ltd|
|2||Mehsana Urban Co-op Bank|
|3||Rajkot Nagarik Sahakari Bank|
|4||Kalupur Commercial Co-op Bank|
MFI List Offering Mudra Loan
|Fusion MicroFinance P. Ltd.|
|S V Creditline Pvt. Ltd.|
|Madura Micro Finance Ltd.|
|Margdarshak Financial Services Ltd.|
|ESAF Micro Finance & Investments P. Ltd.|
|Ujjivan Financial Services P. Ltd.|
|Shriram Transport Finance Co. Ltd.|
|Fullerton India Credit Co. Ltd.|
|Reliance Capital Ltd.|
|SREI Equipment Finance Ltd.|
|Magma Fincorp Ltd.|
For further details or in case of any query or complaint related to the Pradhan Mantri Mudra Loan Yojana 2022, feel free to contact on the below-given toll-free numbers: