Pradhan Mantri MUDRA Yojana : How to apply for a Business Loan under PMMY?

I have been receiving lot of queries on Pradhan Mantri MUDRA Yojana (PMMY) or MUDRA Bank. Many blog readers have been asking for information on loan application procedure, whom to approach for assistance and which banks / financial institutions are offering loans under PMMY scheme.

In his last Budget speech (2015-2016), Finance Minister Arun Jaitley proposed to set up a ‘Micro Units Development Refinance Agency (MUDRA Bank) with a corpus of Rs 20,000 crore. On 8th April, 2015 Prime Minister Narendra Modi launched MUDRA Yojana.

Since then many banks and financial institutions have been offering business loans to sole-proprietors or entrepreneurs of Small & Medium Enterprises under PMMY scheme. It is estimated that Banks may disburse loans worth Rs 1.22 Lakh crore under PM Mudra Yojana by end of this fiscal.

In this post let us understand – What are the types of loans offered under PMMY? How to apply for loans under on Pradhan Mantri MUDRA Yojana? What are the required documents for processing of loans under MUDRA scheme? What are the contact numbers for Mudra Bank Loans?

How to avail Business Loans under Pradhan Mantri MUDRA Yojana ?

As of now Mudra Bank is not a full fledged banker. In future this will be converted into a full-fledged one. Currently it is offering Refinancing services only.

So whom to approach for assistance under PMMY scheme?  You can approach any of the following lending institutions in your respective regions to apply for loans under MUDRA Yojana. (Picture courtesy Mudra.org.in)Pradhan Mantri MUDRA Yojana how to apply for mudra loan

Following are the lending institutions;

  • Scheduled Commercial Banks (Public / Private Banks)
  • Regional Rural Banks (RRBs)
  • Scheduled Urban Co-operative Banks
  • State Co-operative Banks
  • Micro Financial Institutions – MFIs (like NBFCs, Societies, Trusts etc.,) Mudra Yojana MFIs list for loans

MUDRA has enrolled 27 Public Sector Banks, 17 Private Sector Banks, 27 Regional Rural Banks and 25 Micro Finance Institutions as partner institutions for channelizing Loan assistance to the end borrower.

Sanction of assistance shall be as per the eligibility norms of respective lending institution. The loan will be released to undertake small business activities / micro enterprise.

These lending institutions will then approach MUDRA Bank for financial assistance or for refinancing of the sanctioned loans.

Types of Loans under Pradhan Mantri MUDRA Yojana (PMMY)

It has been proposed to fund the business units based on the stage of growth or funding needs of an entrepreneur or a micro unit.

  • Under ‘Shishu’ Scheme, loans up to Rs 50,000 will be sanctioned. This is the first stage when the business is just starting up. (Click on the below image to download Shishu loan application form)Pradhan Mantri MUDRA Yojana loan application form
  • Under ‘Kishor’ Scheme, loans above Rs 50,000 and up to Rs 5 Lakh will be provided.
  • Under ‘Tarun’ category, loan of above Rs 5 Lakh and up to Rs 10 Lakh will be sanctioned.

Key features of Shishu loan are;

  • No collateral is required
  • No loan processing fee
  • Rate of interest is 1% per month
  • Repayable in maximum period extended up to 5 years
  • Working capital loans will be given through MUDRA cards.Mudra Card

(Mudra Cards are issued by a bank or in association with MFI. It is issued as ‘RuPay’ Debit card. Cash can be withdrawn from any ATM.)

For details regarding loans above Rs 50,000 under PMMY, you may have to contact your nearest bank branch.

Checklist for loans under Pradhan Mantri MUDRA Yojana

Following are the documents that are to be submitted along with the MUDRA loan application form;

  • Self-attested Proof of Identity (Voter ID / Driving license / Aadhar card / Passport etc.,).
  • Proof of Residence (Recent telephone bill / electricity bill / Voter Id / Aadhar card / Bank statement / Passport etc.,).
  • Loan applicant’s recent Photograph (2 copies).
  • Quotation of Machinery / other items to be purchased (if any).
  • Name of supplier / details of machinery / price of machinery and / or items to be purchased.
  • Proof of Identity / Address of Business Enterprise, copies of relevant Licenses / Registration Certificates / other documents pertaining to the ownership identity and address of business unit (if any).
  • Proof of category like SC / ST / OBC / Minority etc., (if applicable).

MUDRA Bank Helpline / Contact numbers

If you wish to avail assistance under Pradhan Mantri MUDRA Yojana (PMMY), you can approach the local branch of any of the above referred institutions in your region.

For information on MUDRA products and for any kind of assistance, the borrower can either approach/contact MUDRA office at Mumbai or the identified MUDRA Nodal Officers. MUDRA officers contact details

MUDRA has identified 97 Nodal Officers at various SIDBI Regional offices/Branch Offices to act as “first contact persons” for loans under MUDRA scheme.

The borrower may also visit MUDRA website, mudra.org.in and can send any query/suggestion to help@mudra.org.in.


Latest Update (26-Feb-2016)Till 12th February, 2016, the loans extended are as follows:

CategoryNo. of borrowers
Shishu2,50,54,052
Kishore16,53,010
Tarun2,93,566
Total2,70,00628

Out of the total disbursement of Rs. 99, 467 crore as on 12th February, 2016, Rs. 21,119 crore is under Tarun Category. This constitutes 21.23% of the total portfolio. (Source : PIB)


My Opinion

It is estimated that there are around 5.77 crore Small Business units (mostly under individual proprietorship) which run small manufacturing, trading or service businesses in India. These sole-proprietors or entrepreneurs of Small & Medium Enterprises, find it difficult to get credit / finance from the financial institutions and end up acquiring loans at very high interest rates from financiers or money-lenders.

If Pradhan Mantri MUDRA Yojana is implemented well, it surely can be a boon to many of these small business owners. I believe these types of schemes are better than providing unnecessary subsidies.

Give a man a fish you feed him for a day, teach him how to fish and he will never go hungry

Kindly share your views and comments on Pradhan Mantri MUDRA Yojana 🙂

  • Arun kumar says:

    Dear Sir/Mam i want requirement of
    5,Lac to start my own Business so sir can we explain me i am eligible for this loan. But sir i have no property to morgage in this requirement give me a great suggestion i like to start my own garments fashion business only i have experience in retaile knowlgede

    thank you

  • Sumit kumar says:

    Sir kiya sucseess hai

  • VIKASH KUMAR says:

    SIR CHOTA SA BIJNESS KARNA HAI 5LAKH SE STARTING

  • VIKASH KUMAR says:

    SIR CHOTA SA BIJNESS KARNA HAI

  • Jyoti Agarwal says:

    Hello sir,

    My Name is Jyoti Agarwal i want to open a clothes and garment shop. how can this mudra yojna help me please guide

  • Manoj Kumar says:

    Sir my name is Manoj Kumar want to start small business in rural area so Rs. 1000000/- is require for starting the own business. Kindly help me shortly please.

  • seema agarwal says:

    Sir
    This is me Seema Agarwal my husband want to open a manufacturing ferm of copy n register bt due to lacke of money his hand is band .
    Sir kya ap is loan k bare m shi jankari denge kyuki koi kuch khta to koi kuch we can’t understand wt we do security kha lgagi n all that plz tell me
    Tx u

  • Zafar says:

    Dear Sir/Mam i want requirement of
    5,Lac to start my own Business so sir can we explain me i am eligible for this loan. But sir i have no property to morgage in this requirement give me a great suggestion Thank you…

  • Gajendar choudhary says:

    Name. Gajendar choudhary
    Shar made papa ka ek chhota sa ek dary farm hai his say 6 logo ka pet bharta hai share mujhay 500000 ka loan chahiya ta ki mai apne liya business kar saku

  • Gajendar choudhary says:

    Name. Gajendar choudhary
    Share hamara ek chhota sa ek dary farm ha

  • Deepu says:

    Sir mujhe chota business ke liya 5lakh ka loan lena hai

  • Deepu says:

    Sir mujhe bhi 5lakh ka loan lena hai

  • subhash kumar says:

    Sir i am subhash kumar sr me apna ek kirane ki dukan kholna cahta hu jisme mujhe 300000 rupe ki jrurt he or meek garib admi hu kya mujhe ye kam krne ke liye pase mil skta he sr plssssss sir i request u sr

  • mohan kumar says:

    Sir my name is Mohan . I have qualified m.com in previous year.bu I have to tell with sorrowfully that I have get no job . So now my family and I also decided to take ” Jan seva Kendra” and want to open a computer center. For this we need of 5 lakh . So kindly sir help me that how can I get money for start my own business. Thank you

  • R.GOPINATH says:

    i am gopinath i am applied for bankloan how to apply please help me sir
    i am interested for import export business

    Thanking you

    Yours truly
    R.GOPINATH

  • Vicky says:

    Dear sir,
    I want to start small business in rural area, so I need a loan of rs 200000 minimum….. What kind of purposes to have this loan

  • Kuldeep says:

    plz sir main apni boutique kholna chati hu plz guide me k kaise mujhe loan mil skta hai 9855188561

  • salman says:

    hiii Sir i m salman i m open for computer coching and regular cocging in aligarh plzzz sir help how to apply for 300000 rs loan my father has no job i requst u plzzz help me my no 7417679785 plzzz quick response

    how to apply to loan for awas yojna i made our house also
    plzzz guide me im aiting plzzz

  • deepak singh says:

    Dear sir I want business mujhe 5 lakh loan ki jrurat h kya krna hoga pls mujhe btaye 9717517693

  • Ashfaq says:

    Dear Sir,
    I am running a travel agency in a rural area of Mau dist. I am interested in this plan to have loan almost 1000000 to start a ice block plant so please help me to proceed further information and all process step by step.

    Thanks

    Regards,

    Ashfaq
    9169166603

  • satish sahu says:

    i want a loan for the purpose a to start a mobile handsate reparing shop

  • GAURAV SINGH says:

    SIR,
    I WANT TO RUN POULTRY FORM SO PLEASE ADVISE ME FOR THIS
    JUST NOW I AM PERSUING B.COM

  • P Karthi says:

    Sir,

    Me start with Mushroom Cultivation business in my native Trichy district. How to apply loan for small scale business in Pradhan Mantri MUDRA Yojana. Plz Help Me. My qualification was M.Sc., pass in first Class. We interested in agriculture cultivation

  • rajesh says:

    Hello sir i possible to get the pmy loan i want to start the small business can any one support for the start busines how to take the funds to star 9128290999

  • Uragonda Srihari says:

    U Srihari
    Bhiwadi MR
    sir mudra loan me 1 lakh loan milega tho ,50000 free milega karke haisa public hafa failarahai iss me kitni sachchai hai, garib log isketaraf akarshit ho rahe hai, so sir plz kuch bataiye ye kya hai

  • Harbans Singh says:

    HELLO SIR MY SELF HARBANS SINGH FROM FAZILKA DISST,(PUNJAB)
    I HAVE START A NEW WORK
    . I HAVE NEED A MONEY SO CAN I APPLY THIS LOAN FACILITY
    I NEED 1 LACH RUPEE. HOW CAN I APPLY THIS LOAN
    PLEASE GUIDE ME
    REPLY AS SOON AS POSSIBLE
    I MA WAITING YOUR REPLY

  • kajal says:

    sir i need money for opnening my own institute . i want to teach student . for opening i need 80000 money . i will pay all the money. when i get profit in my institute . i request u plz help meee .

  • DR.MARIMUTHU,DPM,MD GEN says:

    i am dr.marimuthu from tamilnadu,, finished my mbbs,md gen medicine.diploma in psychiatry medicine.planning to start,home for psy,pts ..any help how do iget finance assistent

  • sujit godake says:

    what to do if any branch not take application for this loan

  • abhay pandey says:

    i want to open my own business.for which i had an idea for through mee seva business
    an internet shop.
    for which i have to whome i approach for mudra loan please adice me about this
    loan.
    email:poojabhi143@yahoo.com
    phn no:+91-8886156499

  • shaji says:

    Sir,

    My name is shaji im from kerala. i want to start a new business of coconut oil for that i have to purchase coconut in bulk quantity. i need cash for it. later on i will develop it. so initially i want shishu loan. what can i do for it, pls advice

  • Premanda barik says:

    Sar im a oriss premananda barik muja 1lk kha kon chaea plesea help me

  • chandan kumar says:

    dear sir,
    mera nam Chandan Kumar h mai ek privet job kar raha hu mai ek electronic macnic hu or mai apna ek service center Khulna chahta hu so mujhe finance ki jarurat so kya mujhe lone mil sakta h mai lukhisarai Bihar ka rehne wala hu mere pass adhar card pan card driving lines voterid card h please reply me sir\ maidam

  • Ram babu says:

    Sir my name is ram babu from Delhi Sir mene electrical & electronic ka business shuru kiya tha jiska tin no 07890400641 h paise na hone ke karan band para h .Agar mujhe 5.lakh ka loon milta h to mai is business ko chala sakta hu

  • qbhishek sawai says:

    Madi ji loan kafaye sabse jyada un logo ne uthaya h jisko loan ji jarurath th he nhi kuki unk pass power th to unka kaam ban gya
    asal main jis insaan ko realty main loan ki need h mere jse log vo to haarjate h dhakke khate khate sochte sochte is liye …kya khe apko
    jiski v.j.p k neta logo se setting h uska loan pass ho jayega hum logo tak to khabar bhi qbhi aai h or kuch ko abhi bhi nhi pta k pm jiIitna mhaan kaam kar rhe h ameeroo k kaam khulvane k liye loan de rhe h naam gareeb ka or fayeda ameer ka modi ji contaxkt me apka he fayeda h mera to vse he nuksaam he chal rha h jab se aap aye h bura naa manna ..

    • tousif shaikh says:

      ye paisa bhi modi jee ne sirf amiro k liye hi nikala hai
      gareebo k liye modi sarkar k pass siway baato k kuch bhi nahi hai

  • Mahuya Manna says:

    Dear Sir
    mai Mahua Manna Howrah district ki Baluhati me rahene bali hun. meri apse hardik anurodh hai ki apki mudra yojona ki thori sath mujhe mile. Mai mid brain activation ki ek school kholna cahati hun. magar meri capital ki prblem se bo samvab nehi ho raha he. mujhe 3 laks ki loan chahie. kya mai ye pa sakti hun? Agar ap meri thori help kre to bihot meherbani hogi.

  • SHIV KUMAR says:

    HELLO SIR MY SELF SHIV KUMAR FROM KARNIPUR WAZIRGANJ GONDA
    I HAVE START UP GONDA MO 9919221517
    . I HAVE NEED A MONEY SO CAN I APPLY THIS LOAN
    I NEED 1 LACH RUPEE. PLEASE TELL ME HOW CAN I APPLY THIS LOAN
    PLEASE I NEED 100000 RUPEES I DONT GOT MONEY IAM THE SOCIETY
    REPLY AS SOON AS POSSIBLE
    I MA WAITING YOUR REPLY PLEASE HELP ME

  • AZARODDIN MULLICK says:

    I am azaroddinmullick from puri,odisha. I want to get a mudra loan. But the andra bank manager refuse me. He said that I have no residential proof. Now I am stay in rented house of puri. So he said that not give of loan to rented house.
    So PM NARENDRA MODI sir, please u will do solve my problem. I oblige to you sir.

  • Shashwat kumar says:

    Sir,I am Shashwat kumar from Supaul District Bihar.In this time i am working in private sector as a sales person who deals in electic motor.now i want to open my own bussiness hotel related,but i havent money for start it,So I want to get loan and start it.Please recomend me how is it possible.

  • Shashwat kumar says:

    Sir,I am Shashwat kumar from Supul District Bihar.In this time i am working in private sector as a sales person who deals in electic motor.now i want to open my own bussiness hotel related,but i havent money for start it,So I want to get loan and start it.Please recomend me how is it possible.

  • Avinash says:

    I am avinash i Want to wood carving machine in karnataka Hassan district and how i am apply for loan 1000000

  • SOWMYA says:

    Hi,

    This Sowmya , I done my MBA (Finance) past 3Year , now i doing a work in one of pvt limited , I want to start my business related motore vehicle (4 wheeler ) service clinic. I need primary investment minimum 10 Lackh rupees.

    This Yojana Help to me……

    When my dream come to TRUE……….

    Awaiting For your kindful possible Reply..

    Thanking You

  • Amit pradhan says:

    I want to buy a car so that i can make it run in ola. I need 5 lakh ruee loan. Will you please help me.

  • KRISHNA says:

    Dear Sir,

    Me Ek Computer Hardware & Networking ka Business karna chahta hu…jiske liye mujhe 3.85 Lacs Rupaye Chahiye.. Mene kai Bank me jakar poochha lekin koi sahi jabab nahi deta hai….anurodh hai ki mujhe sahi guid kare taki mujhe or mere sath jude char logo ko rojgar mil sake…

  • satish reddy says:

    Dear sir,

    this is satish from zaheerabad im playing to start mineral water RO plant at zaheerabad im planning to take a lone plz help me in this . which banks can provide lone please help me

  • praveen kumar says:

    hi sir …
    mera nam praveen kumar h or m u.p se hu distic hathras sikandrarao gram purdilnagar ka rhne wala hun sir app se mera unrodh h ki jo pm modi laon yujnaye h us ka labh garib or gramid chhetr ke logo ko nhi mil pata h..is subhida ka labh paise wale seth log le rhe h or garib admi is loan ka katai labh nhi utha pa rhe h agr ye log is yujna ke bare m bank m jate bhi h to bank karam chari un garibo ko mna kr ke bha se bhagadiya jata h ….sir app hi btyen esi halat m hm garib log kya kren garibo ki to kux bhi sarkari subhidhaun ka labh nhi mil pa rha sir app se mera hath jodkar unrodh h ki app in garib logon k liye bhi ye sari pm ujnao ka labh mile………

  • Sri Heramba Deka says:

    My name is Sri Heramba Deka,vill-Na-satra,p.o.-Loch,dist.-Kamrup(Assam).I am an unemployed Indian citizen,I have need a huge amount loan under PMMY(Tarun) for my future development.I will found a rice and mustard oil mill to take this loan.So,sir please give me the opportunity.

  • Anup says:

    i need a loan but, i did not get satisfy answer with responsible person & also he is not answering my call.

  • preetha says:

    sir.mera naam preetha..mera native place also kottayam n kerala state..muje ek dtp centere or photostat ke ek business hai…ab muje mudra loan lekar mera business develop karne ki alochana hai..mai kya karu..kaham jakar mem mera loan ka details le looga…

    sorry sir, mere hindi not fluent..

  • KAMAL JOSHI says:

    HELLO SIR MY SELF KAMAL JOSHI FROM LUDHIANA,(PUNJAB)
    I HAVE START A NEW WORK HOSIERY LINES
    . I HAVE NEED A MONEY SO CAN I APPLY THIS LOAN FACILITY
    I NEED 4 LACH RUPEE. HOW CAN I APPLY THIS LOAN
    PLEASE GUIDE ME
    REPLY AS SOON AS POSSIBLE
    I MA WAITING YOUR REPLY

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