PM Mudra Loan: How to apply for Rs 10 lakh business loan under this govt scheme? Know details here

PM Mudra Yojana: Pradhan Mantri Mudra Yojana (PMMY) is a government scheme to provide mudra loans of up to Rs 10 lakh to non-farming small and micro firms that are engaged in manufacturing, trading, or service sectors.

PM Mudra Yojana: Interest rate

The interest rates on Pradhan Mantri Mudra Yojana are declared by lending institutions as per Reserve Bank of India guidelines. Therefore, it can differ from time to time.

PM Mudra Yojana: Processing charges

Processing charges for PM Mudra loans is also dependent on the lender's internal guidelines. The upfront fee/processing charges for Shishu loans (covering loans up to Rs. 50,000/-) are waived off by most of the banks.

PM Mudra Yojana: Eligibility

Eligible borrowers include individuals, proprietary concerns, partnership firms, private limited companies, public companies, or any other legal forms. 

However, 1) The applicant should not be a bank or financial institution defaulter and should have a good credit history. 2) Individual borrowers may be needed to have the requisite skills, expertise, or knowledge to complete the requested task. 3) The necessity for educational qualification, if any, is determined by the nature of the planned activity and the requirements.

PM Mudra Yojana: Categories 

PM Mudra Scheme is divided into three categories: 'Shishu', 'Kishore', and 'Tarun'.

The Shishu category covers loans up to Rs 50,000, the Kishore category covers Rs 50,000 to up to Rs 5 lakh while the Tarun category covers from Rs 5 lakh to up to Rs 10 lakh.

PM Mudra Yojana: Lenders

Borrowers can apply through any of these lending institutions. Public Sector Banks, State operated cooperative banks, Micro Finance Institutions (MFI), Private Sector Banks, Rural banks from the regional sector, Non-Banking Finance Companies (NBFCs), Small Finance Banks (SFBs), and any other financial intermediary approved by Mudra Ltd as member financial institutions.

PM Mudra Yojana: How to apply online

First of all, keep documents like ID proof, address proof, passport-size photograph, applicant signature, proof of identity, or address of business enterprises handy before applying for a PM Mudra loan online.

Here are step-by-step guidelines to apply for PM Mudra loan online -
Step 1: Go to the PM MUDRA official website (https://www.mudra.org.in/) and then pick the Udyamimitra portal.
Step 2: Click on the Mudra Loan "Apply Now".
Step 3: Choose one of these options: New entrepreneur, established entrepreneur, or self-employed professional, then provide the applicant's name, email, and mobile number to create an OTP.
Step 4: Once enrolled, fill in the applicant's personal and professional information.
Step 5: Choose hand-holding agencies if assistance is necessary with project ideas, etc.; otherwise, click "Loan Application Centre" and apply.
Step 6: Choose the type of loan you require: Mudra Shishu, Mudra Kishore, or Mudra Tarun.
Step 7: The applicant must next provide their firm details and the type of industry their business belongs to.
Step 8: Enter other information such as owner data, current banking/credit facilities, planned credit facilities, future estimates, and preferred lenders.
Step 9: Attach all of the needed papers, as mentioned above.
Step 10: Once the application is submitted, your application number will be created and you should keep it safe for future reference.