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How to Get a Business Loan in Minutes with PMMY: The Ultimate Guide | You Won’t Believe How Easy It Is to Apply for PMMY Loan Online

How to Apply for Pradhan Mantri Mudra Yojana Loan Online

If you are looking for a business loan to start or expand your micro or small enterprise, you may be interested in the Pradhan Mantri Mudra Yojana (PMMY) scheme. This scheme offers loans up to Rs. 10 lakh to non-corporate, non-farm businesses in the manufacturing, trading, and service sectors. In this article, we will explain what is PMMY, who is eligible, how to apply online, and what are the benefits of this scheme.

What is Pradhan Mantri Mudra Yojana (PMMY)?

PMMY is a flagship scheme of the Government of India launched in 2015 to provide financial support to micro and small enterprises. The scheme is implemented by Micro Units Development and Refinance Agency (MUDRA), a subsidiary of Small Industries Development Bank of India (SIDBI). MUDRA partners with various banks and financial institutions to offer loans under three categories: Shishu, Kishor, and Tarun.

  • Shishu: Loans up to Rs. 50,000 for new businesses or startups.
  • Kishor: Loans from Rs. 50,001 to Rs. 5 lakh for existing businesses that need additional funds.
  • Tarun: Loans from Rs. 5 lakh to Rs. 10 lakh for well-established businesses that want to grow further.

The loans are offered at competitive interest rates and with minimal processing fees. There is no collateral or guarantee required for availing the loans. The repayment period ranges from 3 to 7 years depending on the loan amount and category.

Who is eligible for PMMY?

To be eligible for PMMY, you must meet the following criteria:

  • You must be an Indian citizen and above 18 years of age.
  • You must own or intend to start a non-corporate, non-farm business in the manufacturing, trading, or service sector.
  • Your business should not have availed any loan from any other bank or financial institution under the same scheme.
  • You should have a satisfactory credit history and track record.
  • You should have the necessary skills, experience, and knowledge to run your business.

Some of the examples of businesses that can avail PMMY loans are:

  • Shopkeepers, traders, vendors, and service providers
  • Machinery and equipment manufacturers and suppliers
  • Transport operators and vehicle owners
  • Food and textile producers and processors
  • Artisans, craftsmen, and cottage industries
  • Agri-allied activities such as agri-clinics, agro-processing, dairy, fishery, etc.

How to apply for PMMY online?

To apply for PMMY online, you need to follow these steps:

  1. Visit the official website of PMMY at https://www.mudra.org.in/
  2. Click on the “Apply Online” button on the homepage.
  3. Select your category (Shishu, Kishor, or Tarun) and fill in your personal and business details in the application form.
  4. Upload the required documents such as identity proof, address proof, business proof, income proof, bank statement, etc.
  5. Submit your application and note down the reference number for future reference.
  6. You will receive an SMS or email confirmation once your application is received by MUDRA.
  7. MUDRA will forward your application to the nearest bank branch or financial institution that offers PMMY loans.
  8. The bank or financial institution will verify your details and conduct a credit appraisal of your business.
  9. If your application is approved, you will receive a sanction letter from the bank or financial institution with the loan amount, interest rate, repayment schedule, and other terms and conditions.
  10. You can visit the bank branch or financial institution with the sanction letter and sign the loan agreement.
  11. The loan amount will be disbursed to your bank account within a few days.

What are the benefits of PMMY?

PMMY offers several benefits to micro and small entrepreneurs such as:

  • Easy access to credit without collateral or guarantee
  • Low interest rates and processing fees
  • Flexible repayment options
  • No prepayment penalty
  • Credit support for working capital and term loan
  • Credit enhancement through credit guarantee fund
  • Capacity building through training and skill development

FAQs

Here are some frequently asked questions about PMMY:

Q: What is the interest rate for PMMY loans?

A: The interest rate for PMMY loans varies depending on the loan amount, category, bank or financial institution, and borrower profile. However, it is generally lower than the market rate and ranges from 8% to 12% per annum.

Q: What are the documents required for PMMY loans?

A: The documents required for PMMY loans include:

  • Identity proof such as Aadhaar card, PAN card, voter ID card, passport, driving license, etc.
  • Address proof such as Aadhaar card, electricity bill, water bill, telephone bill, ration card, etc.
  • Business proof such as GST registration, trade license, Udyog Aadhaar, MSME registration, etc.
  • Income proof such as income tax returns, bank statements, balance sheet, profit and loss account, etc.
  • Project report or business plan with details of the business activity, market potential, cost of project, sources of finance, etc.

Q: How long does it take to get PMMY loans?

A: The processing time for PMMY loans depends on the bank or financial institution and the category of the loan. Generally, it takes about 7 to 15 days for Shishu loans, 15 to 30 days for Kishor loans, and 30 to 45 days for Tarun loans.

Q: How can I check the status of my PMMY loan application?

A: You can check the status of your PMMY loan application by visiting the official website of PMMY at https://www.mudra.org.in/ and clicking on the “Track Application” button. You need to enter your reference number and mobile number to view the status of your application.

Q: Can I repay my PMMY loan before the due date?

A: Yes, you can repay your PMMY loan before the due date without any prepayment penalty. However, you need to inform your bank or financial institution in advance and obtain a no-objection certificate from them.

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