PM E Mudra loan is a loan offered by the Government of India to encourage entrepreneurship. It was launched in April 2015 to provide loans to support new business startups in India. Under this scheme, banks can issue loans up to Rs 10 lakhs for a period of 5 years.
Topics Discussed in This Article:
- What is Pradhan Mantri Mudra Yojana Scheme
- What is the Process and Eligibility to Apply For PM E-Mudra Loan
- Documents Required for PM E-Mudra Loan
- What is the Limit, Interest and EMI of PM E-Mudra Loan
- 5 Main Benefits of PM E-Mudra Loan. Pmegp VS Mudra Loan
- List of banks that can provide Mudra loan and What if it is not paid
PM E Mudra loan is given under three categories: 1) Shishu, 2) Kishore, and 3) Tarun. Shishu is eligible to get a loan of up to ₹ 50000. Kishore can get up to ₹ 50000-5 lakh and tarun can get up to 5 lakh to 10 lakh.
What is Pradhan Mantri Mudra Yojana Scheme(PMMY)
PMMY is a scheme launched by the Indian PM Narendra Modi on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small enterprises. These loans are given by Commercial Banks, Small Finance Banks RRBs, NBFCs and MFIs.
The borrower can approach any of the lending institutions mentioned above or can apply online through this portal www.udyamimitra.in . Under PMMY scheme, loan is given under three categories i.e. ‘Shishu’, ‘Kishore’ and ‘Tarun’.
What is the Eligibility and Process to Apply For PM E-Mudra Loan
Any Indian citizen who need a credit of up to 10 lakh and has a non- farming business plan like manufacturing, service, processing and trading, is eligible for PM e mudra loan.
To apply for this loan, you can go to the banks who is allowed by the government to offer this loan. The name of banks are listed below. You can check it. You can also apply this loan online through udyamimitra.in.
Documents Required for PM E-Mudra Loan
The documents required for a PM E-Mudra Loan are as follows:
- A copy of the borrower’s passport with a validity of at least 6 months.
- Proof of Identity: A copy of the borrower’s PAN card or Aadhar card.
- Proof of Address: A copy of the borrower’s driving license, Voter ID, Passport, Electricity Bill or Passport.
- Proof that you are employed in India and have an annual income equivalent to at least 3 times the amount you wish to borrow. This can be your latest Income Tax Return Form 16A/16B or a letter from your employer on company letterhead stating your current salary and expected salary for the next six months.
- Latest bank statement (within last six months).
What is the Limit, Interest and EMI of PM E-Mudra Loan
The limit for shishu e mudra loan is 50000, for kishore e mudra loan is 50000-500000 and limit for tarun e mudra loan is 5 lakh to 10 lakh. The interest rate for shishu e mudra loan can be between 1%-12%.
For kishore e mudra loan, it can be between 8.60% to 11.15% and for tarun e mudra loan, interest rate can be between 11.15% to 20%. For EMI, you can calculate e mudra loan EMI from here.
5 Main Benefits of PM E-Mudra Loan. Pmegp VS Mudra Loan
PM E-Mudra Loan is a loan that has been designed for the entrepreneurs. It is a flexible loan, which helps the entrepreneurs to meet their business needs with ease. 4 Main benefits of this loan are:
1) It offers loans up to Rs 10 lakh under three different schemes.
2) No collateral is required to apply for e mudra loan.
3) There is no processing fees and it offers low competitive interest rates.
Pmegp is stands for prime minister employment generation program. It was founded in 2008 to provide loans to the less privileged.
So, the main difference between Pmegp VS Mudra Loan lies in their objectives. Pmegp’s objective is to provide loans to the less privileged while Mudra’s goal is to support small and medium enterprises.
List of banks that can provide Mudra loan in India
Here in the following pdf, you can find all the list of banks which are participated in this loan scheme.
What Happens If You Can Not Pay Loan Taken From Mudra Yojana
If you don’t pay your loan, the bank will try to recover the loan to the maximum extent. But if you default and it goes to NPA, the bank apply for CGTSME with the government. This would cover only 75% of the principal lent. You as a borrower’s, credit score comes down.
So, this is all you need to know about PM e mudra loan. If there is anything left to cover in this article, please mention it in the comment below. Thank You!
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