Home » pmmy

pmmy

 

Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana under the Micro Units Development and Refinance Agency(MUDRA) Bank is a new institution being set up by Government of India for development and refinancing activities relating to micro units. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector.

Pradhan Mantri Mudra Yojana Complete Details – Process Explained

A special scheme has been launched and named as Pradhan Mantri Mudra Yojana (PMMY). All therequired responsibilities and functioning of Mudra Bank will be done under this scheme.

The big question that now arises in the mind of people is that What is the eligibility criteria to be part ofMudra Bank Loan Scheme and What is the procedure of Loan Application. Other important things arethe interest rate & Application forms. But before going to that it is extremely important to Know theCategory of your Business.

Mudra Bank Scheme – Shishu, Kishor&Tarun Categories.

Micro units or small business had to be categorized to signify the growth stage, Development and Fundingrequirements. Three categories were created for this purpose Namely “Shishu(Child Category)”, “KishorCategory” and “Tarun Category”.

To find out in which category your business falls, here is the explanation of each category 

Shishu(Child) category – As the name suggests, this category is for the Start ups. All those businessesthat have been just started and looking for Loan will fall in this category. A loan Cover of Rs. 50,000 will begiven to all micro units falling in this Category.

Kishor Category – This one is for those who have started their business but it has be established yet. Aloan cover from Rs. 50,000 to 5 Lakhs will be given to units falling into this category.

Tarun Category – All small business which have been set up and established will fall into this category.There may be some financial requirements for the betterment of business. That’s why all small business orunits falling into this category will be eligible for a Loan Cover of uptoRs. 10 Lakh.

Eligibility Criteria for Participating Banks and FinancialCompanies 

Scheduled Commercial Banks

All scheduled commercial Banks in public and private sector with 3 years of continuous profit track record,net NPAs not exceeding 3%, minimum net worth of Rs.100 cr. and not less than 9% CRAR are eligible toLend Loan

Regional Rural Banks –

All restructured RRBs having net NPA within 3% ( relaxable in deserving cases), having profitableoperations and notcarrying any accumulated losses and CRAR >9% are eligible under Pradhan MantriMudra Scheme.