Pradhan Mantri Mudra Yojana: Financial assistance up to Rs 10 lakh from PNB; Check eligibility, interest rate, documents required and other details

In yet another step to bolster self-employment in the country, the Narendra Modi Government launched the Pradhan Mantri Mudra Yojana (PMMY). Banks have been disbursing loans under this scheme. Those who are looking for an opportunity to get loans have this opportunity from the second largest public sector bank - Punjab National Bank (PNB).

"Mudra loan scheme from PNB to promote self-employment. Move towards self-reliance with this plan," Punjab National Bank tweeted on Monday.

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Pradhan Mantri Mudra Yojana was launched to ‘fund the unfunded’ by bringing such enterprises to the formal financial system, and extending affordable credit to them. Under PMMY, Punjab National Bank (PNB) provides financial assistance upto Rs 10 lakh to non-farm enterprises for manufacturing, trading and services activities, for income generation purpose.

स्वरोजगार को बढ़ावा देने के लिए पीएनबी की ओर से मुद्रा लोन योजना। इस योजना के साथ बढ़ें आत्मनिर्भरता की ओर।

अधिक जानकारी के लिए क्लिक करें: https://t.co/OPlkUn2KGt#AzadiKaAmritMahotsava#AzadHaiKhwaishien pic.twitter.com/oCQpR4zQy2

— Punjab National Bank (@pnbindia) August 14, 2021

Activities allied to Agriculture like pisciculture, beekeeping, poultry, livestock rearing, grading, sorting, aggregation agro industries, diary, fishery, Agriclinics and Agribusiness centers, Food & Agro-Processing, etc. (excluding crop loans, land improvement such as canals, irrigation, wells ) and services supporting these, which promote livelihood, shall be eligible for coverage under PMMY w.e.f. 2016-17.

However, funding under the “Activities allied to Agriculture” category is done as per the Bank’s existing Allied agriculture schemes and the terms and conditions, Margin, Collateral, Repayment, Rate of Interest shall be as per the guidelines of RBI / Bank.

As per the information provided by the bank, any individual / proprietary concern / partnership firm / company / association of persons (AOP) / limited liability partnership (LLP) / etc., not a defaulter to any Bank / Financial Institution is eligible for Mudra loan.

Variants of the MUDRA loans :

1. Shishu (up to Rs. 50,000)

2. Kishore (above Rs. 50,000 to Rs. 5 lakh)

3. Tarun (above Rs. 5 lakh to Rs. 10 lakh)

Rate of Interest:

The rate of interest applicable to the MSME units is in the range of RLLR + 0.15% to RLLR +1.40 percent (subject to change, as per Govt /RBI guidelines, issued from time to time).

Documents required:

SHISHU:

1. Proof of identity i.e. Self-certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card / Passport / Photo Ids, issued by Govt. authority etc.

2. Proof of Residence i.e. recent telephone bill / Electricity bill / Property tax receipt / Voter’s ID card / Aadhaar Card / Passport of Individual / Proprietor / Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.

3. Applicant’s Recent Photograph (2 copies) not older than 6 months.

4. Proof of SC/ST/OBC/Minority, if applicable.

5. Proof of Identity / Address of the Business Enterprise, if available.

6. Statement of Account from the existing Banker, for the last six months, if any.

7. Quotation of Machinery / other items, to be purchased.

KISHORE / TARUN

1. Proof of identity i.e. Self-certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card / Passport / Photo Ids issued by Govt. authority etc.

2. Proof of Residence i.e. recent telephone bill / Electricity bill / Property tax receipt / Voter’s ID card / Aadhaar Card / Passport of Individual / Proprietor / Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.

3. Proof of SC/ST/OBC/Minority, if applicable.

4. Proof of Identity / Address of the Business Enterprise – Copies of relevant Licenses / Registration Certificates / lease or Rent agreement/ Other Documents pertaining to the ownership, identity of address of business unit / Udyog Aadhaar Memorandum.

5. Statement of Account from the existing Banker, for the last six months.

6. Last two years unaudited balance sheets of the existing units, along with income tax /sales tax returns etc. (Applicable for loans of Rs. 2 lakh and above).

7. Projected balance sheets of start-ups / existing units for one year, in case of working capital limits and for the period of the loan in case of term loan (Applicable for loans of Rs. 2 lakh and above).

8. Sales achieved during the current financial year, up to the date of submission of application (in case of existing units).

9. Proforma Invoices / Quotations for the assets to be purchased and estimates for the civil works, if any to be undertaken. Aspect of technical feasibility and economic viability may be discussed with borrower, if felt necessary.

10. Asset & Liability statement of the borrower including, Directors & Partners.

11. Memorandum and Articles of association of the company/Partnership Deed of Partners etc., wherever applicable.

12. Photos (two copies) of applicant / Proprietor / Partners / Directors not older than 6 months.