Pradhan Mantri MUDRA Yojana or PMMY is a scheme that was launched in 2015 to provide loan up to Rs.10 lakh. This loan is offered under the MUDRA (Micro Units Development & Refinance Agency Ltd.) to non-corporate and non-farming small and micro-enterprises to promote value-based sustainable entrepreneurial culture.
In 2018-2019, the number of unemployed loan that was sanctioned under this said scheme was a total of 59870318. The scheme has sanctioned Rs. 321722.79 Crore and disbursed Rs. 311811.38 Crore in 2018-2019.
Types Of Products Offered Pradhan Mantri Mudra Yojana
In this scheme, the loan for unemployed is disbursed under any of these three products-
- Shishu: This product offers up to Rs. 50, 000. It is aimed at those entrepreneurs who areas at the initial stage of their business venture.
- Kishor: It offers up to Rs. 5 Lakh. It is aimed at those business owners who intend to expand their business operations and are in need of additional funds for the same.
- Tarun: On meeting the required criteria, this product offers up to Rs. 10 Lakh.
However, such financing is not adequate to sponsor the smooth functioning of trades. Under such circumstances, individuals can approach reputed lenders and avail their loan against property that comes with a credit amount of up to Rs. 3.5 Crore and a convenient repayment structure. Its affordable EMIs ensure the convenient repayment of the credit amount.
Vital Documents To Avail Unemployed Loan Under The Pmmy
Shishu-
- Information about a machinery that borrowers intend to purchase
- Quotation of this machinery and other equipment
- Details of the machinery supplier from whom this equipment will be bought
Kishor
- Bank statements for the last six months
- Last two year’s balance sheet
- Income tax returns
- Memorandum and Articles of Association (if any)
- The sales report of the current year and the period before applying for a loan
- A probable balance sheet for the loan tenor or a year
- A report that assures the technical and economic viability of a business
Tarun
Besides the documents required for availing a loanunder the Shishu scheme, borrowers will also need to provide-
- SC, ST, OBC, etc. certificates
- Valid proof of address
- Valid ID proof
Who Can Avail A Loan Under The Pmmy?
Any business owner, proprietary firms, public sector companies, private limited companies or a legal business individual or firm can apply for an unemployed loanunder this scheme. However, the intending borrower has to make sure that they are not a loan defaulter to be eligible to apply for the same under this initiative.
In case a borrower does not meet the eligibility criteria to apply for a loan under MUDRA scheme; they can apply for a loan against property. They can use it as a Bajaj Finserv personal loan for unemployed as it comes with no end-use restrictions. They can also look into the various types of loans against property to learn more about them.
Tenor And Interest Rates For The Pmmy
According to the current rules, a loan availed under the MUDRA scheme must be repaid within 5 years. Borrowers can also opt for early repayment of the loan amount, but that depends entirely on the lender’s decision.
A nominal rate of interest is applied on the loan amount availed under the Pradhan Mantri MUDRA Yojana. The interest rate differs from product to product and is decided based on the principal loan amount. Also, the creditworthiness of a borrower and the decision of lending banks or NBFCs like Bajaj Finserv play a vital role in the same.
For example, the said NBFC provides pre-approved offers that make the process of availing loans easy and hassle-free. Pre-approved offers are available on several financial products. You can check your pre-approved offer by providing only essential details like name and contact number.
Additional Read: How to Get Personal Loan for Unemployed Individuals?
To decide which scheme is a feasible loan option for you, you can compare the interest rate and principal amount under the MUDRA and a Loan against property scheme. It will also tell you all that you need to know before applying for a loan against property or a MUDRA loan.
As per the data shared by the Government of India, Ministry of Labour and Employment in 2018, over 3.49 Crore entrepreneurs have benefitted through this scheme. You too may consider the same.
