Share this articlePM MUDRA LOAN is a Govt. initiated credit funding scheme to offer business loans, MSME loans, working capital loans, and overdraft facilities up to Rs. 10lakhs to individuals, business owners, MSMEs, and self-employed professionals.In this loan there is no collateral/security is required from the borrowers by Banks/NBFC under this scheme. In this loan repayment tenure offered is up to 5 years with NIL to nominal processing charges and foreclosure charges. Micro Units Development and Refinance Agency (MUDRA) loan under Pradhan Mantri Mudra Yojana (PMMY) can also be applied by women entrepreneurs at concessional interest rates from scheduled Banks and NBFCs. The PM MUDRA LOAN has been categorized under 3 loan schemes named Shishu, Kishore, and Tarun Yojana. PM MUDRA LOAN-FOR BUSINESSMEN IN INDIA-2023Three types of PM Mudra Loan Schemes in India:-(1) Sishu Mudra Loan Yogana:-The Mudra Shishu scheme is a boon for aspiring entrepreneurs in the country. This loan can easily avail small loans at affordable interest rates to fulfill their working capital need. Once the business will expand to a certain level, they can also consider Kishore and Tarun loans under the Mudra scheme. Feature of Mudra Sishu Loan:- Ø Zero Processing fees Ø Affordable interest rates, generally not exceeding 12% rate Ø In mudra Sishu Loan repayment tenure of 3 to 5 years. Ø Online as well as the offline application process Ø Loan amount of Rs.50,000. Documents required for Mudra Sishu Loan:- 1. KYC Documents:Ø Identity Proof: PAN Card, Aadhar Card, Driving Licence Voter ID.Ø Address proof: Aadhar Card, bank account, account statement, Ration card, rent agreement, Phone bill, Electricity Bill 2. Other Financial Documents:-Ø Income Tax Returns or Form 16 & Salary slips.Ø Address proof of the BusinessØ Registration Certificate of the BusinessØ Proof of Business ContinuityØ Director Identity Number ( DIN) of all the Directors Ø Photographs of the applicants(s) directors(s) of all the partnersØ Bank statement for the past 12 Months Ø Sales record of the current financial yearØ Assets & Liabilities of the firmØ Memorandum of Association (MOA) & Articles of Association (AOA) or partnership deed.Ø Relevant registration and permits in the name of the business with concerned authorities.Annual Report of Mudra Shishu Loan:- Over 4 crore businesses benefited from Mudra Shishu Loans in FY2020-21 with the total sanctioned amount exceeding Rs. 1 Lakh crore. You May refer to the table below to get an idea of the number of loans granted and the total loan amount sanctioned in the past five years. 1. FY2020-21=4,01,80,115 Loan account sanctioned.2. FY2019-20=5,44,90,617 Loan account sanctioned3. FY2018-19=5,15,07,438 Loan account sanctioned4. FY2017-18=4,26,69,795Loan account sanctioned5. FY2016-17=3,64,97,813Loan account sanctioned PM MUDRA SISHU LOAN YOJANA -2023(2)PM Mudra Kishore Loan Yojana:-PM Mudra Kishore Loan is a part of the Pradhan Mantri Mudra Yojana(PMMY)scheme. This particular initiative was launched by the Government of India to give Micro, Small, and Medium Enterprise. From the Mudra Kishore loan, you can avail of anywhere between Rs. 50,000 to Rs. 5,00,000 depending on your scale of operation, eligibility, and monetary requirement. The money acquired as a Mudra Kishore Loan can help you meet the working capital requirement, and buy new machinery. On average, about 40% of the amount sanctioned as Mudra loans is given to entrepreneurs like you in the form of Kishore loans. Features of mudra Kishore Loan are as follows:- Ø With a Mudra Kishore Loan, you can get funding of anywhere between Rs. 50,000 to Rs. 5,00,000.Ø You can get a Mudra Kishore Loan to meet your working capital requirement, consolidate high-interest business debt, pay off your creditors or just survive a harsh economic environment.Ø You can repay the money availed as a Mudra Kishore Loan within the period of anywhere between 3 years to 5 years.Ø You will not have to pay any processing fees while availing of a Mudra Kishore Loan.Ø The Kishore Loan borrower, the highest interest rate you will pay is 12% per annum.Ø There is no type of security in this mudra Kishore Loan. Documents required for Mudra Kishore Loan:- Documents that you need to apply for a Mudra Kishore loan are as follows:- Ø An identity proof such as your Voter’s ID, PAN Card, Aadhar Card, driver’s license, or Passport if any.Ø A residence proof such as telephone or electricity bills, property tax receipts not older than 2 months, Aadhar card Voter’s ID, passport, bank passbook or account statement or domicile certificate issued by the concerned local body.Ø Two of your most recent photographs, which should not be older than six months.Ø Balance sheet for your business concerning the last two financial years.Ø You’re Income Tax and sales tax returns of at least the past 2 years.Ø Your Bank account statement for the previous 6 months.Ø Estimated Balance sheet of your business for the next 1 year for the required loan duration.Ø Memorandum of Association and Articles of association, if in case your company is a public or private limited firm.Ø Sales made by your business in the financial year before the one in which you are applying for the Kishore Mudra Loan.Ø Proof of identity and address of your business/enterprises with copies of relevant licenses registration of ownership.Ø Proof of category such as SC/ST/OBC, if any belong to any of these cast groups. Annual reports of Mudra Kishore Loan:- The government of India has helped multiple MSME owners like you achieve their business goals by approving Kishore loans for them since its inspection. 1. FY 2015-16 Number of Loan Accounts is 20,69,4612. FY 2016-17 Number of Loan Accounts is 26,63,5023. FY2017-18 Number of Loan Accounts is 46,53,8744. FY2018-19 Number of Loan Accounts is 66,06,0695. FY2020-21 Number of Loan Accounts is 94,86,160 PMe-Mudra Loanfrom SBI for Small Businessmen in India-2023(3) Tarun PM Mudra Loan:-MSMEs owner in India who is looking to start a business or expand it, a Mudra Tarun loan can come to your rescue. Pradhan Mantri Mudra Yojana, the Mudra Tarun loan can help you secure funding of between Rs. 5 Lakhs to rs. 10Lakhs. You can use this money to set up a new business and expand your operation of the business. The Important Features of Mudra Loan:- Ø Tarun loans granted to MSMEs who want to expand/upscale their operation require a high amount of startup capital or meet their working capital needs.Ø Funding of anywhere between Rs. 5 Lakhs toRs. 10 Lakhs can be availed from PM Mudra Tarun Loan.Ø The borrower can repay the sanctioned amount within the time frame of 3 to 5 years.Ø Processing fees for Tarun loans do not go beyond 0.5% of the approved amount.Ø The interest rate charged to PMTarun Loan borrowers generally does not exceed 12% per annum.Ø There is no any kind of collateral to get a Mudra Tarun Loan. Documents required for Mudra Tarun Loan:- The following documents are required to get Tarun Loan as an MSME:- Ø Identity Proof such as Voter ID card, PAN Card, Aadhar card, and Driver’s Licence.Ø Residence Proof such as telephone/electricity/bills/property tax receipts that should not be older than 2 months.Ø Aadhar card/Voter ID /Passport Bank passbook or account statement or domicile certificate issued by the concerned local body.Ø Two photographs which should not be older than six months.Ø Balance sheet for the business concerning the past two financial years.Ø Income Tax returns for the last two years.Ø Bank statement for the last six months required.Ø Estimated balance sheet for the upcoming 1 year or the required loan duration.Ø Memorandum Association ( MoA) and Articles Association(AoA), if applicable.Ø Sales figures of the current financial year before applying for the PM Mudra Tarun Mudra Loan.Ø Proof of the Identity /Address of the business or enterprise along with copies of relevant licenses and registration of ownership.Ø Proof of category such as SC/ST/OBC . Annual report of Mudra Tarun Loan:- 1. FY2015-16- Number of Loan accounts 4,10,4172. FY2016-17- Number of Loan accounts 5,39,7323. FY2017-18- Number of Loan accounts 8,06,9244. FY2018-19- Number of Loan accounts 17,56,8715. FY2020-21-Number of Loan accounts 10,68,771. Benefits of Mudra Loan:-Ø It is Collateral-free loan-No Collateral security is required from the borrower from any Banks/NBFC.Ø There is Low-interest rates with Nil to nominal processing fees.Ø Loans covered under the Credit Guarantee scheme from the Govt. of India.Ø This Loan is used as Term Loan Working Capital loans and overdraft facilities.Ø All Non –farm enterprises (Small or Micro firms engaged in income-generating activities can avail of Mudra loans.Ø Mudra loans can also be availed by people belonging to the SC/ST/Minority category at a special rate of interest. PM MUDRA LOAN YOJANA -2023 FOR SMALL & NEW BUSINESSMEN OF INDIA IN 2023List of Businesses covered under Mudra Scheme:-The list of businesses that are covered under the PM Mudra scheme to perform income-generating activities. 1. Commercial Vehicle Finance:-Mudra finance for machinery/equipment can be used to purchase commercial transport vehicles like tractors, auto rickshaws, taxis, trollies, tillers; goods transport vehicles, 3 whillers rikshawa, and e-riskshawa. 2. Service sector activities:-Starting businesses like salons, gyms, tailoring shops, medical shops, repair shops dry cleaning and photocopying shops, etc. 3. Food and Textile Products Sector Activities:- Various activities are involved in the respective sector such as papad, achar, ice cream, biscuits, jam, jelly, and sweets making, as well as for agricultural produce preservation at the rural level. 4. Business activities for Traders and shopkeepers:– Setting up shops, service enterprises trading and business activities, and non-farm income generating activities. 5. Equipment Finance Scheme for Micro Units:-Maximum loan up to Rs.10 Lakhs.6. Agri-allied Activities:-Activities related to businesses in agri-clinics and agribusiness centers food &agro processing units, poultry farming, pisciculture, beekeeping, sorting, livestock-rearing, grading, aggregation agro industries, diary, fishery, etc. It is to be noted that Banks/NBFCs offer Mudra Loans to individuals, startups, MSMEs, entrepreneurs, or other businesses that are engaged only in service, Trading, or Manufacturing. Mudra Loans for Women Entrepreneurs:- Mudra Yojana under PMMY encourages women’s entrepreneurship and for that Private/Public sector Banks, NBFCs & Micro Finance Institutions (MFIs) offer collateral-free business loans at reduced or concessional interest rates. The maximum loan amount offered under Mudra Yojana for women entrepreneurs is up to Rs. 10 lakhs with a repayment tenure of up to Rs. 5 years. The mudra loan eligibility for women remains the same as stated for individuals and enterprises Nil to Nominal processing fees.Achievements of PMMY:- 1. Financial Year:-2022-23No of PMMY Loans Sanctioned: Rs.330512.10CroreAmount sanctioned: Rs.249492.21 CroreAmount Disbursed: Rs.242729.84 Crore 2. Achievement under PMMY(FY2021-22) No of PMMY Loans Sanctioned: 53795526Amount Sanctioned: Rs.339110.35 CroreAmount Disbursed: Rs.331402.20 Crore. FAQs:-1. Question:-How much time does it take for Mudra Finance to get approved?1Answer:-Usually it takes around 7-10 working days for a Mudra loan approved by Private/Public Sector Banks and NBFCs. 2. Question:-Do I need to submit any security/collateral with the bank to avail loan under PMMY Yojana?2. Answer:-No you are not required to submit any collateral or security with any financial institution to avail of Mudra Loans. 3. Question:-Is ITR compulsory for Mudra Finance?3. Answer:-For existing businesses and salaried people, the last year ITR is required to apply for business loans under Mudra Yojana. 4. Question:-Who is eligible for SBI Mudra Loan?4. Answer: – Exciting customers of SBI, maintaining a Saving Bank or Current Account (Individual) can apply for an e- MUDRA loan amounting to Rs.50,000 online on their official website or by clicking the link. SBI e-Mudra Loan. the applicant should be between 18 and 60 years of age. 5. Question:- Is Mudra Loan available now?5. Answer:-Mudra Loans under Pradhan Mantri Yojana (PMMY) can be availed of from nearby branch office of a bank NBFC, MFIs, etc. 6. Question:- What is e-Mudra Scheme?6.Answer:- PM Mudra Loan Yojana is a Government of India scheme which enables a small borrowers to borrow from banks,MFIs, NBFCs for loans up to 10 lakhs for non-farm income generating activities. Generally, loans up to 10 Lakhs issued by banks under Micro Small Enterprises, which is given without collaterals. 7. Question:-What happen if we do not pay Mudra Loan?7.Answer:-Legal action against mudra loan defaulters can be taken by the government .The borrower may be asked to pay back the full amount of their loan plus interest and penalties .The government has also right to file a civil suit in court an pursue criminal proceedings against defaulters. 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