Pradhan Mantri Mudra Yojana (PMMY) Online Apply (2023)

1. Sishu Yojana

Micro or small business owners have the greatest advantage in this category because they can apply for up to Rs. 50,000 in funding. The Shishu Yojana works best for enterprises who need a small amount of funding to start their business. The business owners will need to provide specific information about their business plans in addition to quoting the kind and amount of machinery they will need to purchase in order to submit a successful application to this category.

So much so that even the contact information for the machinery supplier would have to be given. The likelihood of the loan being approved will be high without these details. On this product, there will be no processing charge. The following documents would be necessary for this product.

1. Quotation of all purchases including machinery and equipment
2. Details of all purchases
3. Details of supplier/s that will provide machinery and equipment

2. Kishor Yojana

The Pradhan Mantri Mudra Yojana plan has a category called Kishor that is perfect for business owners looking to grow an already successful enterprise. Loan requests can be made for amounts between 50,000 and 5 lakhs rupees. Applicants must submit a completed application form along with the necessary documentation that will clarify and establish the status of their organization in order to be eligible to apply for Kishor. The particular paperwork needed for this product under the Pradhan Mantri Mudra Loan is.

1. Account statements from an existing banker for the latest six months (if any)
2. Balance sheet dating from the last two years
3. Memorandum of Association (MOA) (if any)
4. Articles of Association (AOA) (if any)
5. An estimated balance sheet for a one year or the entire tenure of the loan
6. Account of successful sales in the current financial year, before the application of loan
7. Income tax/ Sales returns
8. A report that will demonstrate the technical as well as economic sustainability of the business

3. Tarun Yojana

This is a Mudra lending program, similar to Kishor, that provides loans to any small business owners who want to grow their enterprises. If the borrower satisfies the requirements for eligibility, he or she may request an amount up to Rs. 10 lakhs. The documentation for this Pradhan Mantri Mudra Yojana that must be presented include.

Type of Industries that Can Apply for Pradhan Mantri Mudra Yojana

The following industries are eligible to qualify for a Pradhan Mantri Mudra Yojana.

1. Shopkeepers
2. Business vendors
3. Food production industry
4. Agriculture sector
5. Small scale manufacturers
6. Restoration and repair shops
7. Handicraftsmen
8. Service based companies
9. Truck owners
10. Self-employed entrepreneurs

Benefits of Pradhan Mantri Mudra Yojana

The Pradhan Mantri Mudra Yojana plan has a number of advantages, some of which are listed below;

• Banking and financial services can be availed in both rural and urban areas.
• Financial backing can be obtained by micro-small businesses and start-ups.
• Business loans can be taken for small amounts at affordable interest rates.
• The borrower’s credit guarantee is taken by the government, so if a borrower is unable to repay the amount borrowed, the responsibility for the loss will be borne by the government.
• Food vendors, shopkeepers and other small business owners can make the most of this scheme.
• Financial aid is available through this scheme in areas where people have no access to basic banking facilities.
• The repayment period of the scheme can extend up to seven years.
• Women borrowers can avail the loan at discounted interest rates.
• Refinance schemes can also be availed with designated lenders.
• Individuals who wish to generate income through micro enterprise activities can avail the Micro Credit Scheme.
• The Pradhan Mantri Mudra Yojana  is in collaboration with the “Make In India” campaign which the government has initiated to foster innovation, facilitate investment, improve skill development, and build the best manufacturing infrastructure in the country.
• There is no need for collateral or security to avail this scheme.
• The funds borrowed through this scheme can only be used for business purposes.

Eligibility Criteria of Pradhan Mantri Mudra Yojana

Required Documents for the Pradhan Mantri Mudra Yojana

The following listed documents would be the standard need when applying for a Pradhan Mantri Mudra Yojana, even if they might vary depending on the type of product chosen;

For Sishu Loan

• Proof of identity – Self attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aadhaar 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 / Aadhar 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.

For Kishore and Tarun Loan

• Proof of identity – Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
• 2) Proof of Residence – Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
• Proof of SC/ST/OBC/Minority.
• Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
• Applicant should not be defaulter in any Bank/Financial institution.
• Statement of accounts (for the last six months), from the existing banker, if any.
• Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
• Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
• Sales achieved during the current financial year up to the date of submission of application.
• Project report (for the proposed project) containing details of technical & economic viability.
• Memorandum and articles of association of the company/Partnership Deed of Partners etc.
• In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.

Pradhan Mantri Mudra Yojana Features

• 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 loan (Min/Max)
  • Maximum loan amount : Upto Rs 10 lacs
  • Loans upto Rs.50,000 are categorised as SHISHU
  • Loans from Rs.50,001 to Rs.500,000 are categorised as KISHORE
  • Loans from Rs.500,001/- to Rs.10,00,000/- are categorised as TARUN
• Margin (%)
  • Upto Rs. 50,000/- Nil
  • Rs. 50,001 to Rs. 10 lacs: 10%
• Pricing :Competitive Pricing Linked to MCLR
• Repayment Period
  • WC/TL: in 3 – 5 yrs including a moratorium of upto 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

Pradhan Mantri Mudra Yojana Application Process

Online Apply

• ID Proof
• Address Proof
• Passport size photograph
• Applicant Signature
• Proof of Identity / Address of Business Enterprises