What is Pradhan Mantri Mudra Yojana?

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    Mudhra Yojana

    The Micro Units Development and Refinance Agency (MUDRA) Bank’s Pradhan Mantri Mudra Yojana is a new tool for micro-unit development and refinancing.

    The Pradhan Mantri Mudra Yojana (PMMY) is the government of India’s premier initiative to “finance the unfunded” by integrating underserved enterprises into the mainstream banking system and offering them affordable credit. All public sector banks, including PSU banks, regional rural banks, cooperative banks, private sector banks, foreign banks, microfinance institutions (MFI), and nonbanking financing firms are allowed to lend to small borrowers up to Rs. 10 lakhs (NBFC). On April 8, 2015, the Honorable Prime Minister debuted the program.

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    Eligibility

    Under the Pradhan Mantri Mudra Yojana, any Indian citizen may approach a bank, microfinance organization, or non-bank financial company to apply for Micro Units Development & Refinance Agency Ltd. If they have a business plan for an income-generating activity in the manufacturing, processing, commerce, or service sectors and their credit need is less than Rs 10 lakh, they may be eligible for (MUDRA) loans (PMMY). Loan product categories offered

    MUDRA has previously developed several products and programs under the auspices of the Pradhan Mantri MUDRA Yojana.

    Shishu: Loans up to $50,000 are covered

    Kishor: covers debts beyond 50,000 and up to 5,000.

    Tarun: I will pay off loans up to and including ten million rupees.

    The phrases “Shishu,” “Kishor,” and “Tarun,” which stand for the intervention stages, are also used to describe the successive phase of graduation and development for the recipient micro unit or entrepreneur. Shishu Category Units would receive at least 60% of the credit, with the remaining 40% going to Kishor and Tarun Areas.

    The PMMY does not provide any subsidies for loans. Nonetheless, the loan request will also qualify under PMMY if it is linked to a government project for which the government is giving a capital subsidy.

    Covered sectors

    Sector and activity-focused schemes would be implemented to increase beneficiary coverage and customize products to match the needs of specific business activities. The following strategies are first suggested based on a stronger concentration of enterprises in specific activities/sectors:

    Land Transport Sector / Activity – This will, among other things, let units buy transportation for people and products, like auto rickshaws, small goods vehicles, 3-wheelers, e-rickshaws, passenger cars, taxis, etc.

    Activities that offer social, personal, and communal services, including pubs, gyms, boutiques, tailoring shops, dry cleaners, bike and motorcycle repair shops, DTP centers, drug stores, courier services, etc.

    A sector of Food Products – Assistance would be given to carry out tasks like making papad, achaar, jam/jelly, preserving agricultural produce at the rural level, sweet shops, small service food stalls, and daily catering/canteen services, as well as using cold chain vehicles, cold storages, ice making units, ice cream making units, and making scones, bread, and buns, among other things.

    To offer support for activities like handloom, power loom, chikan work, zari and zardozi work, traditional embroidery and hand work collaboratively, traditional dyeing and printing, garments design, knitting, textile ginning, computer-based embroidery, stitching, and other textile non-garment products like bags, vehicle accessories, furnishing accessories, and so on.

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    Steps for apply

    Borrowers can approach the local branch of any of the following financial institutions in their area: PSU Banks, Regional Rural Banks and Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI), and Non-Banking Financing Businesses (NBFC). Assistance will be granted following each lending institution’s eligibility requirements.

    a checklist (Documents to be submitted along with the application)

    Self-attested copies of voter identification cards, driver’s licenses, PAN cards, Aadhaar cards, passports, and other government-issued photo identification are acceptable as proof of identity.

    A voter’s ID card, Aadhar card, passport of the individual, proprietor, or partner, bank passbook, or most recent account statement fully confirmed by bank officials are all acceptable forms of identification as proof of residency. Domicile certificate, a certificate from a government agency, a local panchayat certificate, a municipality certificate, etc.

    Recent (2 copies) photographs of the applicant that are no older than 6 months.

    Request for a quote on machinery or other goods.

    Name of Supplier, information on the machinery, and/or the cost of what you plan to buy.

    Copies of the pertinent licenses, registration certificates, and other documents pertaining to ownership, and the identity of the business unit’s address, if any, are acceptable forms of proof of identity and address.

    A new tool for the development and refinancing of micro unit-related activities is the Pradhan Mantri Mudra Yojana under the Micro Units Development and Refinance Agency (MUDRA) Bank.

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