PM Mudra Yojna

PM Mudra Yojna

Pradhan Mantri Mudra Yojna is a loan scheme in which two types of loan working capital and term loan facilities are provided to MSME entrepreneurs for business purposes, capacity expansion and modernization. In this scheme the maximum loan amount is 10 lakh.

The following features in Pradhan Mantri Mudra Yojna

  • Type of Facility: Working Capital and Term Loan
  • Purpose: Business purpose, capacity expansion, modernization
  • Target Group: Business Enterprises in Manufacturing, Trading, and Services sector including allied agricultural activities.
  • Quantum of the loan (Min/Max)

Maximum loan amount: Up to Rs 10 lacs

Loans up to Rs.50,000 are categorized as SHISHU

Loans from Rs.50,001 to Rs.500,000 are categorized as KISHORE

Loans from Rs.500,001/- to Rs.10,00,000/- are categorized as TARUN

  • Margin (%)

Up to Rs. 50,000/- Nil

50,001 to Rs. 10 lacs: 10%

  • Pricing: Competitive Pricing Linked to MCLR
  • Repayment Period

WC/TL: in 3 - 5 years including a moratorium of up to 6 months depending on the activity/ income generation.

Review of WC/TL to be done annually.

  • Processing Fee

Nil for Shishu and Kishore to MSE Units

For Tarun: 0.50%(plus applicable tax) of Loan amount

How to apply for Mudra Loan at a Financial Institution?

 The Individual Person needs to follow the step as mention below for Mudra loan:

Step 1: Keep Necessary documents ready like

  • ID Proof (Aadhar Card, Voter ID, PAN, Driving License, etc.)
  • Address Proof (Electricity bill, telephone bill, gas bill, water bill, etc.)
  • Proof of Business (Business registration certificate, GST registration certificate, etc.)
  • Udyog Aadhar

Step 2: Approach to a financial institution

The individual can apply Mudra with leading financial institutions in India like State bank of India, Bank of Baroda, etc.

Step 3: Fill the Loan Application form:

The applicant needs to fill the loan application form and mention business details, personal details, and Amount he wants to avail before knowing how to apply for a loan scheme.

Step 4: Once you have followed the above step, the financial institution sanctioned the loan. 

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