Pradhan Mantri Mudra Yojana

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.