OBJECTIVE
To fund the unfunded and to bring the millions of units which are existing outside the formal banking fold and are unable to sustain or grow due to lack of finance or relying on informal channels ,which are expensive or unreliable by bringing such enterprises to the formal financial system and extending affordable credit to them.
Eligibility
Any individual including women, proprietary concern, partnership firm, private limited company or any other entity are eligible applicant under PMMY loans.
The applicant should not be defaulter to any bank or financial institution and should have a satisfactory credit track record. The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity. The need for educational qualification, if any, need to be assessed based on the nature of the proposed activity, and its requirement.
Purpose
For setting up of new/upgrading existing Micro business enterprises in the manufacturing, processing, trading and service sector and carrying out activities allied to agriculture, financing to weavers and artisans (income generating activity).
Nature of Facility
Term Loan and/or Working Capital up to maximum Rs.10 lakhs under 3 categories
- Shishu : covering loans upto 50,000/-
- Kishore : covering loans above 50,000/- and upto 5 lakh
- Tarun : covering loans above 5 lakh to 10 lakh
Repayment
Maximum - 36 months for Demand Loan and 84 months for term loan including moratorium. Interest to be serviced as and when charged.
MARGIN
| SHISHU | KISHORE | TARUN |
|---|---|---|
| upto Rs.50,000 | above Rs.50,000 up to Rs.5.00 lakh | above Rs.5.00 lakh up to Rs.10.00 lakh |
| NIL | 15% | 15% |
Security
Primary Security-
- Hypothecation of all assets acquired out of bank finance.
- Personal guarantee of promoters/directors.
Collateral Security
- Collateral Security
All eligible activity would be covered under the guarantee cover of NCGTC under ‘Credit Guarantee Fund for Micro Units’.
[No collateral security/third party guarantee to be obtained].
Video To Watch
https://youtu.be/bheV6uR1v0I
Rate of Interest
As prescribed by the Bank from time to time linked to MCLR
Processing Fees and Documentation Charges
As per extant guidelines of the Bank.
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