Pradhan Mantri Mudra Yojana – An Initiative to Encourage Upcoming Entrepreneurs

Pradhan Mantri Mudra Yojana, is a new institution set up by the Government of India, for refinancing the small scale businesses. In the budget speech of 2015, Arun Jaitley proposed the system of ‘Micro Units Development Refinance Agency’. This scheme was launched in the year 2015, by our Prime Minister Narendra Modi as Mudra Yojana. This scheme was included in the year 2016, by the Union Minister, while presenting the budget for the financial year. With the help of this scheme, the small sector businesses can avail loan worth of INR 1 Lakh. This is aimed to create more young entrepreneurs, than job seekers and to fund the unfunded.

Pradhan Mantri Mudra Yojana

Under this Scheme, there are three Divisions Namely

  • Shishu: This scheme covers loans up to INR 50,000
  • Kishore: This scheme covers loans from INR 50,000 to INR 5,00,000
  • Tarun: This scheme covers loans from INR 5,00,000 to INR 10,00,000

This loan amount will be sanctioned by the Micro Units Development and Refinance Agency Bank (MUDRA). So far, under this scheme over 8 crore people has been benefited with over INR 3.42 Lakh Crore Loan. Recently, government has also planned to Organise campaigns to create an awareness about this scheme. The campaign has started in Varanasi, Uttar Pradesh and Union Minister Piyush Goyal, has participated. It has also reported that Till August 13, 2017, a sum of INR 8.70 loan has been distributed, in which INR 6.56 crore has been distributed to women entrepreneurs.

The promotion for this scheme will also be organised in the following cities, Patna, Shimla, Chandigarh, Chennai, Srinagar, Indore, Ludhiana, Hyderabad, etc. It has also been stated that the industrialized stated like Karnataka, Tamil Nadu and Maharastra has been the biggest beneficiaries of this scheme.

Note: Know About e-Mudhra

Who Can Avail the Mudra Loan? 

This Mudra scheme can be availed for the following purposes. They are as follows: 

  • Vehicle Loan: Commercial Vehicle loan, Car and 2-wheeler loan
  • Business Instalment Loan: Loan for starting up business, buying machineries and renovation of office environment, etc.
  • Business Loans Group Loans (BLG): Offering overdraft facility.

Whom to Approach for Getting Loan Under PMMY? 

At present, this Mudra Yojana, is not a fully fledged bank and it is only providing refinancing services.  In the future, it may extend its services. The person who is willing to apply for loan can approach the following institutions.

They are as Follows: 

  • Scheduled Commercial Banks (Private and Public)
  • Regional Rural banks
  • Scheduled Urban Co-operative Banks and
  • Micro Financial Institutions

Mudra has been enrolled in over 27 public sectors, 17 private sectors, 27 Regional Rural banks and 25 Micro finance institutions. The loan can be availed by the individual according to the eligibility basis.

 Checklist for Getting a Loan Under PMMY: 

These are the following documents, that needs to be submitted, when an individual is applying for loan under PMMY. 

  • Copy of proof of Identity, Self-attested by an individual(Aadhaar card, Passport, Driving license, etc.)
  • Proof of Residence (Telephone bill, Electricity bill, Voter ID, etc.)
  • Recent passport size photograph
  • Quotation on items to be purchased
  • Supplier details, Machinery details, Price, etc.
  • Address of Business enterprise
  • Proof of Caste.

If this scheme is implemented properly, then it will be helpful to almost all the Indian citizens, who are willing to start the Business. With the help of this, there is a chance for increased job opportunities in the future. Many upcoming entrepreneurs can get a loan in reduced interest rate, thus helping small scale industries to grow exponentially.

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