Home Discover Journals Pradhan Mantri Mudra Yojana: Funding Women Entrepreneurs

Pradhan Mantri Mudra Yojana: Funding Women Entrepreneurs

By Finserv MARKETS - Feb 27,2020
Views Icon699 Views 0 0 Comments

Pradhan Mantri Mudra Yojana: Funding Women Entrepreneurs

It is probably not surprising that as of 2019, only 10% of startup founders in India were women. Women have been far behind in many fields for centuries, but there has been a steady improvement in the decades after independence. The government recognized their potential and the need to provide them with a level playing ground, with opportunities like the Pradhan Mantri Mudra Yojana (PMMY). While the PMMY is not a special scheme just for women, it is one that promises to help them become entrepreneurs and contribute to the country in a meaningful way. With the help of the PMMY scheme, female entrepreneurs can obtain funding through MUDRA loans. Mudra loans are primarily loans for small time businesses.

Businesswomen and Mudra loans

A single most remarkable factor for measuring the Pradhan Mantri Mudra Yojana’s success would be a majority of the beneficiaries of this scheme have been women. As of last year, women had acquired 75% of a total of Rs.14 crores disbursed as loan through this scheme.

What is a Mudra loan?

Mudra is short for Micro-Units Development and Refinance Agency. It was launched in 2015 under the PMMY by the government of India. It is an initiative for the development of micro, small and medium enterprises. The primary objective of the Mudra loan is to ‘fund the unfunded’.

Loans of upto Rs.10 lakhs are given through select lending institutions. These include small finance banks, commercial banks, RRBs, MFIs, co-operative banks, and NBFCs. There is also an option to apply online through the official PMMY website.

Types of Mudra loans

There are 3 types of Mudra loans under the Pradhan Mantri Mudra Yojana, suited for different stages of your business.

Shishu

This scheme offers loans of upto Rs.50,000. It is meant for those looking to kick start their business. The government is mostly known to focus on this category of loan.

Kishor

This category provides loans between Rs.50,000 and Rs.5 lakhs. It is best suited for businesses that have already begun but need more funds to grow.

Tarun

This category is for loans above Rs.5 lakhs but below Rs.10 lakhs. It is meant for businesses which are already established and plan to expand.

Advantages for women

  • In order to encourage businesswomen, the financing institution could consider providing additional facilities with the loan
  • These could also include a reduction in interest rate
  • Currently, interest rates for MFIs and NBFCs which offer loans to women are reduced by 25bps

How to apply for a Mudra loan online?

You can fill out an online application for the Mudra loan under PMMY through the official website of any of the 29 banks which are a part of the scheme. You will have to fill an online form from the website. This saves the hassle of actually visiting the bank and standing in queues for long periods of time. Here are the steps.

  • Download your application form.
  • Enter all the details.
  • Select a commercial or public bank.
  • Upload any relevant documents and follow some other formalities as prescribed by your selected bank.
  • The loan should now be sanctioned

Get Mudra Loan

Kinds of businesses eligible for Mudra loan

  • Partnerships
  • Self-proprietors
  • Micro industries
  • Service sector organisations
  • Truck owners
  • Fruit and vegetable vendors
  • Repairing shops
  • Foodservice businesses
  • Micro manufacturing companies

Pradhan Mantri Mudra Yojana: Funding Women Entrepreneurs

Documents needed for Mudra loan application under PMMY

  • Id proof
  • Address proof
  • Passport size photos
  • Quotations for machinery and other items
  • Business id proof
  • Business address proof

Repayment

The repayment period of a Mudra loan is 5 years. Within these 5 years, you have to repay the loan in the form of EMIs. Since the interest rates are relatively low, these EMIs are not very stressful. The objective is thus, to help entrepreneurs to develop their businesses without any stress to their day-to-day operations.

Conclusion

The Mudra Yojana is essentially a take-off ground for women with small businesses like tailoring, handicrafts, packaged food, etc. When budding female entrepreneurs have the potential but not the resources, this loan can bridge the gap and help them follow their goals.

If in case you are not eligible for a Mudra loan, your options don’t end there. Have a look at a loan that is tailor-made for you- the Bajaj Finserv Business Loan, available on Finserv MARKETS. This business loan has an end-to-end online process. You can obtain funds of up to Rs. 30 lakhs at competitive interest rates and enjoy flexible repayment tenures. It is quick and efficient, with potential approval within 3 minutes and disbursal within 24 hours. It also offers enough flexibility with the choice for a tenure between 12 to 60 months as per your capabilities.

You will also enjoy exclusive offerings like tailor-made pre-approved loans. Various value added services like Financial Fitness Report are only the cherry on top!

Read more everything about Pradhan Mantri Mudra Yojana

Mudra Loan For Women
Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

Comments

Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522