To cater to the needs of small and medium farmers, the Government of India launched the Pradhan Mantri Mudra Yojana in India in 2015 and under this article today, we will share with you all the details about the same for the recent year that is the year of 2020. In this article, we have shared with you all the information regarding the Yojana which is a loan scheme. In this article, we will share with you eligibility criteria, silent features, and application process that is undertaken under the Scheme.
Pradhan Mantri Mudra Yojana 2020
The Pradhan Mantri Mudra Yojana (PMMY) was announced by the Honourable Prime Minister on 8th April 2015. The scheme is providing loans known as the Mudra loans of up to 10 lakh. These loans will be given to income-generating micro-enterprises engaged in-
Details About The Scheme
|Scheme Name||Pradhan Mantri Mudra Yojana|
|Applicants||Small and medium farmers|
|Launched by||Central Government|
|Objective||Providing loan opportunities to farmers and economically backward people|
The Interest rates are to be charged as per the policy decision of the bank. However, the interest rate charged to ultimate borrowers shall be reasonable.
Features Of The Loan Pradhan Mantri Mudra Yojana
There are many benefits and features of the Pradhan Mantri Mudra Yojana. Some such benefits and features are given below:-
- This loan facility will provide income generation to the micro and small enterprises residing in the country.
- There is no need to provide any collateral or security to avail of Mudra Loan.
- There are no processing charges for availing of the loan.
- The Mudra loan scheme does not prescribe any minimum amount.
- MUDRA’s refinance assistance will be for a maximum tenor of 36 months which will also be aligned to terms of allotment of MUDRA funds by RBI from time to time.
- The Project cost is decided based on a business plan and the investment proposed.
- MUDRA loan is not for consumption/personal needs.
Categories Of PM Mudra Loans Scheme 2020
As announced by the concerned authorities, there are three types of loans which are provided under the Pradhan Mantri Mudra Yojana:-
|Shishu||Up to Rs. 50000/-|
|Kishor||Rs. 50,000 to Rs. 5 lakh|
|Tarun||Rs. 5 lakh to Rs. 10 lakh|
Eligibility Criteria For Loan
If you want to apply for the loan then you must follow the following eligibility criteria given below:-
- The applicants can be-
- Proprietary concerned
- Partnership Firm
- Private Limited Company
- Public Company
- Any other legal forms.
- The applicant should not be a defaulter to any bank or financial institution
- The applicant should have a satisfactory credit track record.
- The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity.
Pradhan Mantri Mudra Yojana 2020 Application Procedure
To apply for the loan in the Pradhan Mantri Mudra Yojana, you need to implement the following steps:-
- First, borrowers need to visit their nearest banks.
- You can visit any of these leading institutions-
- Scheduled Commercial Banks (Public / Private)
- Regional Rural Banks (RRBs)
- Scheduled Urban Co-operative Banks
- State Cooperative Banks
- Micro Financial Institutions, such as-
- Trusts, etc
- Fill up the application form
- Finally, after proper verification lending institutions will extend financial assistance under PMMY to eligible borrowers.
Note:-To get more information related to the scheme, you can get it by visiting this portal.