Banking,Financial Services and Insurance

Pradhan Mantri Mudra Yojana

Ministry Of Finance

Details

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India. The scheme facilitates micro credit/Loan up to Rs. 20 lakhs to income generating micro enterprises engaged in the non farm sector in manufacturing, trading or service sectors including activities allied to agriculture such as poultry, dairy, beekeeping, etc. The Scheme provides financial assistance extended by Member Lending Institutions to the non-corporate, non-farm sector income generating activities of micro and small entities.

These micro and small entities comprise of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others.

The loans under Pradhan Mantri Mudra Yojana can be availed through eligible Member Lending Institutions (MLIs),  which include:

• Public Sector Banks

• Private Sector Banks

• State operated cooperative banks

• Rural banks from regional sector

• Micro Finance Institution (MFI)

• Non-Banking Finance Company (NBFC)

• Small Finance Banks (SFBs)

• Other financial intermediary approved by Mudra Ltd. as member financial institutions

Interest rate

The interest rates are declared by Member  Lending Institutions from time to time as per Reserve Bank of India guidelines based on which applicable interest rate is  determined.

Upfront fee/Processing charges

Banks may consider charging of upfront fee as per their internal guidelines. The upfront fee/processing charges for Shishu loans (Covering loans upto Rs. 50,000/-) are waived by most Banks.

Note :

There are no agents or middleman engaged by MUDRA for availing of Mudra Loans. The borrowers are advised to keep away from persons posing as Agents/ facilitators of MUDRA/PMMY.

Benefits

The scheme has been classified under four categories as 'SHISHU', 'KISHORE' , 'TARUN' and 'TARUN PLUS' to signify the stage of growth / development and funding needs of the beneficiary micro unit/ entrepreneur.

Shishu: Covering loans upto Rs.50,000/-.

Kishore: Covering loans above Rs.50,000/- and upto Rs. 5 lakhs.

Tarun: Covering loans above Rs. 5 lakhs and upto Rs. 10 lakhs.

Tarun Plus : Loans up to Rs. 20 lakh for enterpreneurs who have successfully repaid previous loans under the 'Tarun' category.

Eligibility

Eligible borrowers

• Individuals

• Proprietary concern.

• Partnership Firm.

• Private Ltd. Company.

• Public Company.

• Any other legal forms.

Note 01:The applicant should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.

Note 02: The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity.

Note 03: The need for educational qualification, if any, is assessed based on the nature of the proposed activity and its requirement.

Application Process

Online

The following are the pre-requisites for the enrolment process:

• ID Proof

• Address Proof

• Passport size photograph

• Applicant Signature

• Proof of Identity / Address of Business Enterprises

Step 01: Go to PM MUDRA official website and 

after that  select the Udyamimitra portal 



Step 02: Click on Mudra loan "Apply Now"

Step 03: Select one of the following :  New entrepreneur/ Existing Entrepreneur/Self-employed professional

Step 04: Then fill in the name of the applicant, email and Mobile number and Generate OTP

After Successful Registration

Step 01: Fill in Personal Details and Professional Details.

Step 02: Select hand-holding agencies if any help is required for preparing project proposals etc.,  otherwise click "Loan Application Center" and apply.

Step 03: Select the category of loan required - Mudra Shishu / Mudra Kishore/ Mudra Tarun.

Step 04: The applicant then needs to fill in the Business Information like business name, business activity, etc. and select industry type like Manufacturing, Service, Trading or activities allied to agriculture.

Step 05: Fill in other information like owner  details, existing Banking/ Credit facilities, proposed  credit facilities, future estimates and preferred lender.

Step 06: Attach all required Documents i.e.  ID proof, Address proof, Applicant photo, Applicant Signature, Proof of Identity/ Address of Business Enterprise, etc.

Step 07: Once the application is submitted, an Application Number gets generated which needs to be kept for future reference.

Apply Now

Jan Samarth

Documents Required

For Shishu Loan

1. Proof of Identity – Self- attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aadhaar Card / Passport / Photo IDs issued by Govt. authority etc.

2. Proof of Residence: Recent telephone bill / electricity bill / property tax receipt (not older than 2 months) / Voter’s ID Card / Aadhar Card / Passport of Individual / Proprietor / Partners Bank passbook or latest account statement duly attested by Bank Officials / Domicile Certificate / Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.

3. Applicant’s recent coloured Photograph (2 copies) not older than 6 months.

4. Quotation of Machinery / other items to be purchased.

5. Name of supplier / details of machinery / price of machinery and / or items to be purchased.

6. Proof of Identity / Address of the Business Enterprise – Copies of relevant Licenses / Registration Certificates / Other Documents pertaining to the ownership, identity of address of business unit, if any.

For Kishore, Tarun and Tarun Plus Loan

1. Proof of Identity - Self attested copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.

2. Proof of Residence - Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.

3. Applicant’s recent coloured Photograph (2 copies) not older than 6 months.

4. Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.

5. Applicant should not be defaulter in any Bank/Financial institution.

6. Statement of accounts (for the last six months), from the existing banker, if any.

7. Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).

8. Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).

9. Sales achieved during the current financial year up to the date of submission of application.

10. Project report (for the proposed project) containing details of technical & economic viability.

11. Memorandum and Articles of Association of the company/Partnership Deed of Partners etc.

12. In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.

Frequently Asked Questions

Is Khadi Activity Eligible Under PMMY Loans?

Yes. MUDRA loans are applicable for any activity which results in income generation. As Khadi is one of the eligible activities under Textile sector and in case MUDRA loans are taken for income generation, the same can be covered.

Are MUDRA Loans Available For Purchase Of CNG Tempo/Taxi?

MUDRA loans would be available for purchase of CNG Tempo/Taxi, in case the applicant intends to use the vehicle for commercial purposes.

I Have A Savings Bank Account With the Bank, Would Loan Under MUDRA Be Available Based On The SB Account?

Yes. The applicant can approach the branch and apply for the loan in the format being provided by the said lending institution. The terms and conditions of the loan will be governed by the policies of the lending institution, based on the broad guidelines of RBI. The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.

Under PMMY-Shishu Loans, What Is The Turn Around Time For Processing The Loan Proposal?

As per Banking Codes and Standard Board of India (BCSBI), set up by RBI, loan applications should be disposed off for credit limit up to Rs.5 lakh within 2 weeks.

Is It Required To Submit Income Tax Returns For The Preceding 2 Years For Availing Loan Of Rs. 20 Lakh Under PMMY?

Generally, IT returns are not insisted for small value loans. However, the requirement of documents will be advised by the concerned lending institutions based on their internal guidelines and policies.

Sources And References

Scheme Brochure

Scheme FAQs

Pradhan Mantri Suraksha Bima Yojana

Ministry Of Finance

Details

An Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident.

Premium:

Rs.20/- per annum per member. The premium will be deducted from the account holder’s bank / Post office account through ‘auto debit’ facility on or before 1st June of each annual coverage period under the scheme.

Coverage Duration:

Coverage under PMJJBY is valid for one year from 1st June to 31st May on payment of annual premium.

Accident cover assurance termination:

The accident cover of the member shall terminate / be restricted accordingly on any of the following events:

• On attaining age 70 years (age nearer birth day).

• Closure of account with the Bank or insufficiency of balance to keep the insurance in force.

In case a member is covered under PMSBY through more than one account and premium is received by insurance company inadvertently, insurance cover will be restricted to Rs. 2 lakh.

Benefits

1. On Death- the Nominee shall get Rs. 2 Lakhs.

2. Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot-  Subscriber shall get Rs. 2 Lakhs.

3. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot –subscriber shall get Rs. 1 Lakh.

Eligibility

Individual bank account holders of participating banks aged between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit, will be enrolled into the scheme.

Application Process

Offline

Online

Step 01: In order to enrol in PMSBY offline, one can visit the bank branch where one has a savings account or the candidate can visit the official site: https://jansuraksha.gov.in/Forms-PMSBY.aspx to download the form.

Step 02: After downloading the application form , candidate can fill in all the details and submit  them to the bank along with the  required documents.

Step 03: Once it is successfully submitted , subscriber will get an Acknowledgement Slip Cum Certificate of Insurance.

Contact:

State wise tollfree number - https://jansuraksha.gov.in/files/STATEWISETOLLFREE.pdf 

National Toll Free Number - 1800-180-1111 / 1800-110-001

Documents Required

Frequently Asked Questions

Is There Any Provision For Reimbursement of Hospitalization expenses following accident Resulting In Death Or Disablement?

No. 

Who Can Claim Insurance Benefit In Case Of Death Of The Bank Account Holder Who Gave The Enrolment Form?

In case of death of the Account holder who enrolled in the scheme, claim can be filed by the nominee/appointee as per the enrolment form or by the legal heir/s in case there is no nomination made by the subscriber bank account holder. 

What Is The Mode Of Payment Of The Claim Amount?

Disability Claim will be credited in the bank account of the insured bank account holder. Death claims will be remitted to the bank account of the nominee / legal heir(s).

Will The Family Get Insurance Benefit If The Account Holder Commits Suicide?

No. 

Is It Necessary To Report Accidents To Police And Obtain FIR For Claiming Benefits Under The Policy?

In case of incidents like Road, Rail and similar vehicular accidents, drowning, death involving any crime etc., the accident should be reported to police. In case of incidents like snake bite, fall from tree etc., the cause should be supported by immediate hospital record.

If The Insured Is Missing And Death Is Not Confirmed, Will The Legal Heirs Get Benefit Of Insurance?

PMSBY covers deaths confirmed by documentary evidence to have been caused by accident.

What Benefit Will Be Payable if A Person Suffers Partial Disability Without Irrecoverable Loss Of Sight Of One Eye Or Loss Of Use Of One Hand Or Foot?

No benefit will be payable.

Can An Account Holder Get Claim From More Than One Bank Where He Has Enrolled And Premium Has Been Debited?

No. The insured/ Nominee shall be eligible for one claim only.

Can A Individual Join PMSBY From Multiple Bank Accounts?

No. In case of multiple bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one bank/post office account only.

What Is The Minimum And Maximum Age Limit For Entry Into This Scheme?

Individuals aged between 18 years (completed) and 70 years (age nearer birthday) are eligible for this scheme.

How Will The Premium Be Paid?

The premium will be deducted from the account holder’s bank / Post office account through ‘auto debit’ as per the consent given on enrolment.

Can Eligible Individuals Who Fail To Join The Scheme In The Initial Year Join In Subsequent Years?

Yes, on payment of premium through auto-debit. New eligible entrants in future years can also join accordingly.

Can Individuals Who Leave The Scheme Rejoin?

Individuals who exit the scheme at any point may re-join the scheme in future years by paying the annual premium, subject to conditions that may be laid down.

Will This Cover Be In Addition To Cover Under Any Other Insurance Scheme The Subscriber May Be Covered Under?

Yes. 

Does The PMSBY Cover Death / Disability Resulting From Natural Calamities Such As Earthquake, Flood And Other Convulsions Of Nature? What about coverage of suicide / murder?

Natural calamities being in the nature of accidents, any death / disability (as defined under PMSBY) resulting from such natural calamities is also covered under PMSBY. While death due to suicide is not covered, that from murder is covered

Can All Holders Of A Joint Bank Account Join The Scheme Through The Said Account?

In case of a joint account, all holders of the said account can join the scheme provided they satisfy its eligibility criteria and pay the premium at the rate of Rs.20 per person, per annum through auto-debit.

Which Bank Accounts Are Eligible For Subscribing To PMSBY?

All bank/post office account holders other than institutional account holders are eligible for subscribing to PMSBY scheme.

Are NRIs Eligible For Coverage Under PMSBY?

Any NRI having an eligible bank account with a bank branch located in India is eligible for purchase of PMSBY cover through this account subject to fulfilment of the terms and conditions relating to the scheme. However, in cases of a claim , the claim benefit will be paid to the beneficiary/ nominee only in Indian currency.

Sources And References

Scheme Guidelines