PRADHAN MANTRI MUDRA YOJANA Download

Introduction

1. Pradhan Mantri MUDRA Yojana (PMMY) is a scheme set up by the Government of India (GoI) for providing Mudra Loans up to Rs. 10 lakhs to the non-corporate, non-farming small & micro enterprises. Mudra Loans are provided under three categories as mentioned below:

2. Mudra Loans are provided to income generating small & micro enterprises engaged in:

3. Extended by Commercial Banks, MFIs, NBFCs and other financial intermediaries.

4. Provides financial assistance to small and micro businesses to help them develop and expand their businesses.

Eligible Applicants

1. Types of Eligible borrowers:

2. The applicant should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.

3. The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity.

4. The need for educational qualification, if any, needs to be assessed based on the nature of the proposed activity, and its requirement.

Nature of Assistance

1. Term loan

2. Overdraft limit

3. Working Capital Loans

4. Composite Loans for acquiring Capital Assets

Additional Information

1. Margin/Promoter's Contribution is as per the policy framework of the lender, which is based on overall guidelines of RBI in this regard. Banks may not insist for margin for Shishu loans.

2. Interest rates are to be charged as per the policy decision of the bank. However, the interest rate charged to ultimate borrowers shall be reasonable.

3. Interest rates should be charged as per the lender's policy. However, the interest rates charged to ultimate borrowers should be reasonable.

4. First charge on all assets created out of the loan extended to the borrower and the assets which are directly associated with the business/project for which credit has been extended.