Pradhan Mantri Mudra Yojana (PMMY)

1. Scheme Overview

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India. This scheme facilitates micro-loans up to ₹20 lakh to micro-enterprises active in the non-corporate, non-farm sector in manufacturing, trading, or service sectors.

• Includes agriculture-related activities such as poultry, dairy, beekeeping, etc.
• Objective: To provide financial assistance to non-corporate, non-farm micro and small enterprises.

Lending Institutions

• Public and Private Sector Banks
• Regional Rural Banks (RRB) and Cooperative Banks
• Micro Finance Institutions (MFI) and NBFCs
• Small Finance Banks (SFB)

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2. Loan Categories and Benefits

Based on the growth stage and funding needs of the beneficiary entrepreneur, the scheme is categorized into four classes:

Category	Loan Limit
Shishu	Up to ₹50,000
Kishore	Above ₹50,000 up to ₹5 lakh
Tarun	Above ₹5 lakh up to ₹10 lakh
Tarun Plus	Above ₹10 lakh up to ₹20 lakh (for those who have successfully repaid previous loans)

• Interest Rates: As per the internal guidelines of the banks.
• Processing Fees: Usually, no processing fee is charged for ‘Shishu’ loans.

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3. Eligibility

Any of the following entities are eligible for this loan:

• Individuals
• Proprietorships
• Partnerships
• Private Limited Companies

Conditions:

1. The applicant should not be a defaulter to any bank.
2. The Credit History should be satisfactory.
3. Must possess the necessary skills/knowledge for the business.

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4. Application Process

Online Application (Udyamimitra Portal)

1. Visit the portal Udyamimitra Portal.
2. Registration: Click on ‘Apply Now’ and select New Entrepreneur/Existing Entrepreneur.
3. Fill Details: Perform OTP verification by entering name, email, and mobile number.
4. Select Category: Choose the appropriate option among Mudra Shishu/Kishore/Tarun.
5. Upload Documents: Upload identity proof, address proof, and fill in business information.
6. Application Number: Save the application number received after submission for future reference.

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5. Documents Checklist

Common Documents (For all categories)

• Identity Proof: Aadhaar Card, PAN Card, Voter ID, etc.
• Address Proof: Electricity bill, telephone bill (must not be older than 2 months).
• Photograph: 2 recent colored photos of the applicant.
• Business Proof: License, registration certificate, or proof of address.

Additional Documents for Kishore and Tarun Loans

• Bank statement for the last 6 months.
• Balance Sheet and IT Returns for the last 2 years (for loans above ₹2 lakh).
• Projected Balance Sheet.
• Project Report with details of technical and financial feasibility.
• Partnership Deed / Memorandum of Association of the company.

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6. Frequently Asked Questions (FAQ)

1. Is a Khadi activity eligible under this scheme? Yes, Khadi activities are eligible under Mudra loans.

2. Is a loan available for purchasing a taxi or tempo? Yes, Mudra loans can be obtained for purchasing vehicles for commercial use.

3. How much time does it take for a Shishu loan? If all documents are correct, Shishu loans are processed quickly.

4. Is an IT return necessary for a ₹20 lakh loan? Yes, for large amount loans, banks usually demand IT returns for the last 2 years.

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Important Note: No official agent or middleman has been appointed for Mudra loans. Do not pay money to any individual.