Pradhan Mantri Mudra Loan Yojana

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Pradhan Mantri Mudra Loan Features

Particulars Values
Pradhan Mantri Mudra Loan Interest Rate 8.05% Per Annum.
Pradhan Mantri Mudra Loan Amount Up to ₹ 50,000 under the Shishu category
From ₹ 50,001 to ₹ 5 Lakh under the Kishor category
From ₹ 5 Lakh to ₹ 10 Lakh under the Tarun category
PMMY Loan Age Limit 18 to 65 years
Pradhan Mantri Mudra Loan Processing Fee NIL under Kishor and Shishu schemes.
0.5% for Tarun loan
PMMY Loan Tenure The loan can be repaid from a period ranging from 3-5 years
Pradhan Mantri Mudra Loan Collateral No collateral or third party security is required

Please Note: RBI keeps Repo Rate unchanged at 4%.


About Pradhan Mantri Mudra Loan

Mudra Loan which refers to Micro Units Development and Refinance Agency Ltd. comes under the Pradhan Mantri Mudra Yojana scheme (PMMY) which was launched in the year 2015 by Prime Minister of India. The loan facilitates micro-credit to small scale industries ranging from Rs. 50,000 to Rs. 10 lakhs.

The scheme provides financial support to Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs to further lend loans to the non-corporate, non-farm small/micro-enterprises to signify the stage of development and funding needs as well as objective to promote entrepreneurship among the new generation.

Pradhan Mantri Mudra Yojana Schemes

Under the PMMY scheme, the following are offered:

Micro Credit Scheme

This particular scheme’s focus is to offer to the Micro Finance Institutions (MFIs), who deliver the credit up to  1 lakh, for various micro-enterprise / small business activities. The model of delivery of the scheme is through SHGs/JLGs/ Individuals for specific income-generating small enterprises.

Refinance Scheme For Banks/NBFCs

Refinance Scheme is mainly for banks such as Commercial / Regional Rural  / Small Finance and Non-Banking Financial Companies (NBFCs). It has the following sub-schemes:

Shishu Yojana

This category of Mudra Loan is best suited for micro or small business owners. The particular business can apply for up to Rs. 50,000 in the loan amount. This scheme is specifically customized for those who need a small capital to set-up their new business. To avail of this loan, the applicants have to present their business ideas.

Kishor Yojana

This category of Mudra Loan is best suited for the business owners who have a running business and want to expand it as a more viable enterprise. The particular business can apply from Rs. 50,000 up to Rs. 5 lakhs in the loan amount. To avail of this loan, the business must fill the loan application and should present proper business documents to showcase the business’s current status in the market.

Tarun Yojana

This category of Mudra Loan is best suited for the small business owners who have a full-fledged running business and want to expand more. The particular business can apply for up to Rs. 10 lakhs in the loan amount.

Please Note: Applicants do not require to submit any collateral or third-party security.

 

Mudra Loan Purpose

A Mudra Loan can be used for the following purpose:Pradhan Mantri Mudra Yojana

  • Setting up a new business
  • Business expansion 
  • Purchasing a new plant & machinery
  • Working capital for business
  • Purchasing business equipment or commercial vehicles
  • Training or hiring new staffs 

Following is a list of the activities that can be covered under MUDRA loans:

  1. Transport Vehicle: Purchase of transport vehicles for transportation of goods and passengers such as auto-rickshaws, small goods transport vehicles, 3 wheelers, e-rickshaws, taxis, etc. Tractors/Tractor Trolleys/Power Tillers used only for commercial purposes are also eligible for assistance under PMMY. Two Wheelers used for commercial purposes are also eligible for coverage under PMMY.

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

  3. Food Products Sector: Papad making, achaar making, jam/jelly making, agricultural produce preservation at the 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.

  4. Textile Products Sector / Activity: Handloom, power loom, khadi activity, chikan work, zari and zardozi work, traditional embroidery and handwork, 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.

  5. Business loans for Traders and Shopkeepers: Financial support for on lending to individuals for running their shops/trading & business activities/service enterprises and non-farm income-generating activities with a beneficiary loan size of up to  10 lakh per enterprise/borrower.

  6. Equipment Finance Scheme for Micro Units:  Beneficiary loan size of up to  10 lakh.

  7. Activities allied to agriculture: Pisciculture, beekeeping, poultry, livestock-rearing, grading, sorting, aggregation agro industries, diary, fishery, agri-clinics, and agribusiness centres, food & agro-processing, etc.

Pradhan Mantri Mudra Yojana Products

  1. Technology Enabler
  2. Refinance for micro-units to commercial banks / NBFCs / RRBs / SFBs / MFIs
    • Shishu: covering loans up to 50,000/-
    • Kishor: covering loans above 50,000/- and up to 5 lakh
    • Tarun: covering loans above 5 lakh and up to 10 lakh
  3. Credit Guarantee for MUDRA loan (through NCGTC)
  4. Development and Promotional Support
    • Sector Development
    • Financial Literacy
    • Institution Development

Pradhan Mantri Mudra Loan Eligibility Criteria

For Banks:

Scheduled Commercial Banks:

  Public Sector Banks Private Sector / Foreign Banks Regional Rural Banks
LEVEL OF NPA Level of Net NPAs not exceeding 15% Level of Net NPAs not exceeding 10%. Level of Net NPAs equal to or less than 3%.
NET PROFIT Should have earned profit during the last 2 years, failing which minimum external rating of long term instruments not below A-(minus) from accredited credit rating agencies. Net profit for the preceding 2 years.
CRAR CRAR as stipulated by RBI.
NETWORTH Net-worth above `250 crores. Net worth above `50 crore.

Small Finance Banks:

  1. Eligible Institution
    • Should have been granted a final license by RBI for carrying on business as Small Finance Bank and have commenced operations as an SFB.
    • The SFB/previous entity prior to conversion into SFB (taken together) should have earned profits during the last 2 financial years. Sanctioning Committee may consider need-based relaxation in respect of SFBs which have reported Net Loss during the previous and/or current F.Y. on merits of each case, provided they have a minimum BBB+ rating of long term instruments.
  2. Benchmark for Sanction
Parameters Benchmark Norm
Net Worth > or= 100 crore
CRAR > or = 15%
Gross NPA < or = 5%
Net IPA < or = 3%
DEA# < 10:1
External Ratings norm External long term rating of BBB+ and above.

For Microfinance Institutions (MFIs), Non-Banking Finance Companies (NBFC), and more information Download Eligibility Criteria for availing MUDRA refinance/ loan.

For Businesses:

The following business categories are eligible to apply for the Loan:

  • Food production sector
  • Agricultural activities
  • Artisans
  • Business vendors and shopkeepers
  • Textile industry
  • Small manufacturers
  • Repairing shops
  • Truck owners
  • Self-proprietors
  • Service sector firms

Pradhan Mantri Mudra Loan Documents Required

The Following document are must and should be presented while applying for the loan:

  • Identity Proof: Aadhaar Card, Passport, Voter I-Card, Driving License, etc, and 2 Passport-sized photographs of the applicant (must).
  • Residential Proof: Aadhaar Card, Passport, Bank statements, telephone or electricity bill, or Address of the enterprise (if any).
  • Quotation Proof: Items to be purchased for business use (if any).
  • the license of the enterprise (if any).

Pradhan Mantri Mudra Yojana Approved Banks

Types Of Banks Criteria
Commercial Banks
  • Both public sector and private sector banks must have been in operation for at least 3 years with continuous years of profit track record.
  • Must not have non-performing assets of more than 3%.
  • Commercial banks should have a minimum net worth of ₹ 100 Cr.
  • The credit to risk Assets Ratio of the banks should not be less than 9%.
Regional Rural Banks
  • Must not have non-performing assets of more than 3%.
  • The credit to risk Assets Ratio of the banks should be more than 9%.

Pradhan Mantri Mudra Loan Interest Rates and Charges

Mudra Loan Bank Interest Rate Processing Fee
SBI 11.05% Up to 0.5% of the loan amount
Bank of Baroda 8.40% to 9.25% NIL
PNB 8.05% to 10.30% As per the customer’s profile
Bank of Maharashtra 9.25% to 10.50% As per the customer’s profile

Pradhan Mantri Mudra Loan Processing Fee / Prepayment Charges

The processing fee depends on your financial profile or bank’s guidelines. The processing fee can range from Nil to up to 0.50% of the loan amount. Before you apply for the Loan, check and compare all costs associated with it.

Pradhan Mantri Mudra Yojana Mudra Card

A Mudra card is a debit card that is issued against the loan taken under the PMMY account.Pradhan Mantri Mudra Loan

MUDRA Card can be used in multiple withdrawals and credits to manage the working capital limit in a cost-efficient manner at the same time keeping the interest burden to a minimum.

A MUDRA Card can be operated across the country for withdrawal of cash from any ATM/micro ATM and also make payment through any ‘Point of Sale’ machines.

Pradhan Mantri Mudra Yojana Synergies

“Make in India” Campaign

Make in India is a major national program which facilitates investment, foster innovation, enhances skill development, protects intellectual property, and build best in class manufacturing infrastructure.

MUDRA, being an initiative for promoting micro-enterprises, fits well with the Make in India initiative for supporting these micro-enterprises.

National Rural Livelihoods Mission / National Urban Livelihood Mission

NRLM’s main focus is to reduce poverty by enabling poor households to access gainful self-employment and skilled wage employment opportunities, resulting in an improvement in their livelihoods on a sustainable basis.

MUDRA, being an initiative for promoting micro-enterprises, would make all efforts to draw synergies between NRLM, NULM, and MUDRA interventions for supporting micro-enterprises and creating sustainable livelihood opportunities for the poor.

National Skill Development Corporation

Synergizing with NSDC will help MUDRA in augmenting the skill sets of the sectoral players.

How to apply for Pradhan Mantri Mudra Loan?

  1. Visit Dialabank.
  2. Go to the loan section and click on the Mudra loan link.
  3. Check the eligibility criteria for Pradhan Mantri Mudra Yojana and fill a user-friendly online application form for Mudra Loan.
  4. One of our relationship managers will soon get in touch with you for further process
  5. For more information and free guidance, you may call on +919878981166.

Pradhan Mantri Mudra Loan Agent and Contact Number

Dialabank is the leading agent for availing Mudra Loan. You can apply online at Dialabank or give a call at +919878981166

Dialabank helps you to find the best option of Banks and NBFCs by providing you with a detailed market comparison of different banks so that you can make the right choice.

Pradhan Mantri Mudra Yojana Important Documents Referral PDF

Interest Subvention Scheme for Shishu Loans
Annexure I
Annexure II
Annexure III
Annexure IV FAQs
Format For Beneficiary Data
Code Structure – PDF Link
Circular Clarification I
Circular Clarification II & Annexure III
ISS Supplementary FAQ No 1
ISS – Mudra Clarification III

Pradhan Mantri Mudra Laon FAQs

What is the interest rate under the PMMY scheme?

The interest rates charged on the PMMY scheme vary across lenders and also on the credit history of the borrower.

Is there any subsidy for the PMMY scheme?

Presently there are no subsidies available on the PMMY scheme.

Is there any security needed for the PMMY scheme?

Loans under the PMMY scheme are unsecured in nature; thus, the borrower does not need to keep anything as collateral or security with the lender.

Is a guarantor required for the PMMY scheme?

Loans under the PMMY scheme are unsecured; therefore, no form of security is required.

 

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