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Pradhan Mantri Mudra Loan Yojana- Financeseva

what is PMMY Full Form

PMMY Full Form is Pradhan Mantri MUDRA Yojana is initiated by Hon’ble Prime Minister on 2015 with the aim to support financial assistance to micro & small enterprises.

How To Make Use Pradhan Mantri MUDRA Loan Yojana (PMMY)

Micro & Small Enterprises (MSEs) plays a vital role in developing economic growth of a country & India stands among them. Almost 40% GDP contributed by micro & small enterprises sector & ultimately create a huge number of job opportunities to new youngsters. Significantly, they are known as emerging key players of economic growth. Finance is an essential need of every business without a proper cash flow, it becomes restricted to manage things, wherein numerous finance Scheme introduced by Government of India & one such Scheme is Pradhan Mantri MUDRA Yojana.

What is Pradhan Mantri MUDRA Yojana?

The government of India initiated PMMY Murda Yojana Scheme through Mudra subsidiary SIDBI to support micro & small enterprises by providing financial assistance up to 10 lacs. Key Features Pradhan Mantri MUDRA Yojana:-

Under PMMY Scheme 3 varied categories sub-divided

Applicants can avail Mudra loan up to 10 lacs

Collateral-free loan facility is available

Maximum tenure up to 60 months

Nil processing fee

Varied Types of Mudra Loan:

Under the PMMY Scheme 3 varied categories sub-divided has followed under:- Shishu Loan:- Firstly, through Shishu PMMY Loan entrepreneurs can avail loan up to Rs.50,000 to finance their startup business.

Kishor Loan:- Secondly, Kishor Loan can be obtained to expand an existing business, under Kishor loan borrowers get loan up to 5 lacs.

Tarun Loan:- Thirdly, Under Pradhan Mantri Mudra Yojana –Tarun loan provides loan up to 10 lacs with 3-5 years of repayment period to repay loan & this type of facility can be used for business expansion purposes.

Which sector are eligible to get Mudra Loan?

Under PMMY Mudra loan following listed sectors are covered:-

Food Sector:- Business engaged in food sector performing activities like food shop, food distribution, preserving food through cold storage can get mudra loan to set up new or expand their existing business.

Transport Vehicle Sector:- Activities covered under transport vehicle sector include commercial vehicle agency, warehouse service, transport & logistics.

Textile Sector:- Business engaged in textile sector performing activities like handloom, weaving, khadi work, processing & apparel manufacturing can get PMMY loan to set up new or expand their existing business.

Traders & Shopkeepers:- Import & export trading unit along with other shopkeepers are eligible to get mudra loan.

PMMY Mudra Loan Eligibility Criteria

PMMY Mudra Loan has certain eligibility criteria that need to be checked before application. Kindly through the following points:-

Applicant must be a resident of India.

Applicant minimum age should be above 18 years.

Individuals/Private limited companies/sole proprietor firm/partnership firm or public limited companies.

All micro & small units engaged in manufacturing & services sector.

Loan requirement should not exceed more than 10 lacs.

New & existing businesses both are eligible.

Firms involved in farming activities are not eligible.

SMEs owned by women entrepreneurs are also eligible.

Documents Required for PMMY Mudra Loan

Pradhan Mantri Mudra Yojana requires the following documents to be submitted at the time of loan application.

Application form with attaching passport sized photographs

Business plan along with project report

Proof of special belonging categories like SC/ST/OBC & other minority communities.

KYC documents- (Aadhar Card, PAN Card, Voter ID, Passport & Driving License).

Company registration certificate & other required documents.

Business address proof – (rent/lease agreement, electricity bill, bank statement.

How to apply for PMMY Mudra Loan Online?

Step 1: – Applicants have to choose their preferred bank enlisted under PMMY Scheme, then download the application form & fill with correct value.

Step 2: – Once, you fill the Pradhan Mantri Mudra Yojana application form. Make sure all the blanks are filled to avoid any kind of tension at last time.

Step 3: – Upload the filled application form along with relevant documents on the online web portal of respective bank.

Step 4: – After the submitted, check your mail on regular basis. As bank representative can contact you anytime for further formalities.

Step 5: – Bank representative will go through your application & evaluate certain factors, if your application seems good then only, they would process for loan sanction.

PMMY Mudra Loan FAQ

What is PMMY Mudra loan?

The Government of India initiated Mudra loan under this credit facility PMMY exists, it aims to facilitate bank loan to micro & small enterprises whether it’s a new or existing firm.

What is Mudra loan interest rate?

Generally, starting 8% onwards rate is charged but bank to bank Mudra loan interest rate get varied.

Who are eligible for PMMY Mudra loan?

Under this scheme only existing business borrowers are eligible along specified categories segment are funded.

Can a women entrepreneur apply for Mudra loan?

Yes, Women entrepreneur with an ideal concept of business can apply for Mudra loan & get upto 10 lacs to startup business.

How much loan amount offered under PMMY scheme?

PMMY scheme divided into 3 categories named Shishu, Kishor & Tarun accordingly respective maximum loan amount of 10 lacs is granted.

How can I apply for Mudra loan online?

To apply online, applicant have to select the optional bank that come under PMMY Scheme – visit their official website-download the application form & fill them to submit with required documents.

Is there any separate application form for Tarun loan?

Yes, if you are applying for Shishu loan or Kishor loan general application form is used but in case you are applying for Tarun loan require separate application form that can be accessible at bank.

How much time given to repay Mudra loan?

To repay loan banks give tenure period ranging from 3 years to 5 years. If you want to repay loan before selected period then certain charges are levied.

[bankforguarantee]

Machinery Loan Interest Rate for Startup

Machinery Loan @5.50% Onwards

• Loan upto 100 Crore

• Maximum tenure 10 Years

• Loan upto 3 Crore without security

What you mean by Machinery loan Eligibility Criteria? For any business without machinery & equipment is totally incomplete to compete with their competitor & successfully grow in industry, where machinery loan help in getting it done in very seamless way. Even some bank provide the relaxation of no collateral/assets required to pledge to avail machinery loan & subsidy on machinery loan also available. Then what are you waiting for check your eligibility criteria to apply for loan.

Machine loan Eligibility Criteria

Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover, total work experience & Creditworthiness ...etc.

Eligibility Criteria for Self-Employed Individuals

• Age Limit of Self –Employed Individuals - 24 to 65

• Public & private both sector companies are eligible

• Company balance sheet must be audited by a registered CA

• Last 3-year business record should be in profitable

• Income tax must filed at least for the past 1 year

Note: - As a minimum loan amount you can avail 50,000 to maximum loan amount of 1 Cr.

What are the factors generally affecting Machinery loan Eligibility Criteria?

There are few factors that generally affects Eligibility Criteria as given below: -

Capability of business: - Your business capability determines your willingness to pay back the loan. Therefore, try to manage business with profit, if it seems to be going lose in past year then probably your application approval chances reduces.

Lack of required documents: - There will be multiple documentation required at the time of document verification, when you were unable to submit that mandatory document, you will result with application rejection.

What are the ways to increase Machinery loan eligibility?

To increase Machine loan eligibility, you need to consider points as given below, this will aid you in increasing your eligibility level.

Make payments on time: - Make sure you make all payments on time, avoiding late payment, nil payments bills & having multiple credit card also affects your eligibility, by considering these points you will able to increase your eligibility.

Get ready the documents in handy :- Always try to keep the necessary documents handy while your verification, as it will enhance your eligibility

Documents Required

PHOTOGRAPHS 2

PAN CARD COPY

AADHAR CARD + PASSPORT

ADDRESS PROOF IF RENTED ALSO REQUIRED PERMANENT ADDRESS PROOF

LAST 3 YEARS FORM -16, ITR WITH COMPUTATION OF INCOME IF FILE

LAST 1 YEAR BANK STATEMENT - SALARY ACCOUNT

LOAN SCHEDULE & SANCTION LETTER (IF RUNNING)

COMPLETE PROPERTY PAPERS WITH CHAIN & MAP +ATS

PROCESSING FEE CHEQUE IN FAVOUR OF BANK

MACHINE QUOTATION

ORDER IN HAND

LAST 3 MONTHS SALARY SLIP + APPOINTMENT LETTER

How to get loan for machinery?

It's easy to get finance for your machinery now as there are several banks & nbfc’s are funding. You can get loan directly from visiting respective bank visit & fill an online application form visit your nearest bank branch to request a loan form, just fill required details with attaching mandatory documents.

How to apply for machinery loans?

You can apply online also, choose your preferred financial institution & visit their website online where you can get loan application form & other documents upload section after successful submit respective bank customer representative will contact you for further confirmation.

Read More Products: Home Loan Personal Loan Business Loan Working Capital Loan Letter Of Credit

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What is Bank Guarantee Meaning Format & Types process

Bank Guarantee

• Simplified processing • Lowest processing fee • Collateral free loan is available

Eligibility Criteria

What you mean by Bank Guarantee Eligibility Criteria?

Bank guarantees are made by bank giving the commitment of liabilities of debtor will be provided in case he or she failed to make payments. Bank guarantees process take place to promote domestic & international trade. Not everyone able to apply, there is a specific eligibility you need to look forward.

Bank Guarantee Eligibility Criteria

Bank Guarantee Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover, total work experience & Creditworthiness …etc.

Eligibility Criteria for Self-Employed

• Age Limit of Self –Employed Individuals – 24 to 65

• WMust have good financial record

• Minimum Years of Business continuity –2- 5 Years

Documents Required

Photographs 2

PAN Card Copy

AADHAR CARD + PASSPORT

ADDRESS PROOF IF RENTED ALSO REQUIRED PERMANENT ADDRESS PROOF

LAST 3 YEARS FORM -16, ITR WITH COMPUTATION OF INCOME IF FILE

LAST 1 YEAR BANK STATEMENT – SALARY ACCOUNT

LOAN SCHEDULE & SANCTION LETTER (IF RUNNING

COMPLETE PROPERTY PAPERS WITH CHAIN & MAP +ATS

PROCESSING FEE CHEQUE IN FAVOUR OF BANK

LAST 3 MONTHS SALARY SLIP + APPOINTMENT LETTER

What is the eligibility criteria for bank guarantee?

Applicant applying for BG facility must have existing 3 years of business continuity with latest year with profitability & should have good credit history.

How bank guarantee works in india?

Not only for business even individuals can avail this type of facility for lowering risk if opposite party fails to make payment then banks will pay you to cover up the sum amount.

How bank guarantee is different from letter of credit?

Bank guarantee are usually used for infrastructure & contract projects wherein letter of credit preferred for international trading.

How to get bank guarantee from sbi?

You can easily get this type of facility offered by sbi state bank of india at competitive interest rates with minimal documentation.

How to calculate bank guarantee limit?

It’s simple to calculate BG limit, just by dividing the annual utilization of raw material procuring upon bank guarantee to be divided by 12 & finally multiplied by total time. Hence, you can able to calculate the limit.

What is bank guarantee?

This facility is generally offered by banks & financial institution, Bank guarantee acts as a promise to cover sum amount & gives the surety of amount to be paid in case debtor fails to pay.

What are the types of bank guarantee?

There are 6 major types of guarantee as given below:-

Foreign bank guarantee

Advance payment guarantee

Earnest money deposit guarantee

Deferred payment guarantee

Performance guarantee

Financial guarantee

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