Mudra Loan Disbursal Not Down during Pandemic

The Pradhan Mantri Mudra Yojana (PMMY) is a government scheme with an aim to provide employment in the country and motivate the young generation towards being independent. Micro-Units Development and Refinance Agency (Mudra) is an administration set up an association that offers to finance for MSMEs. All public and private sector banks, NBFCs, small banks, rural banks, scheduled banks, and co-operative societies that are enrolled under the Mudra Yojana are qualified to avail the scheme. The  Mudra loan interest rate doesn't go past 1% every month and is likewise dependent on the base lending rates of the bank. The repayment tenure of Mudra Yojana ranges between 3 to 5 years. Additionally, there are no processing charges or credit application expenses on Mudra loans. 

Impact on the Rural Economy

As indicated by the information accessible with PMMY, numerous small scale businesses have been granted a loan worth Rs. 40,473. The loans were granted in the initial four months of the current financial year under the Pradhan Mantri Mudra Yojana (PMMY). In spite of the effect of the pandemic, mudra loans of Rs. 35,386 crore has been allotted to small businesses. Numerous banks and Microfinance Institutions (MFIs) offered loans during the pandemic. The outcomes for mudra loans were completely unexpected as loan disbursal was expected to be lower, as the economy in the rural sector has not been hit as hard by the pandemic. In the first and second quarters, the disbursal of mudra loan was generally consistent, however, the number slowly expanded in the second by 50%. Toward the finish of the financial year on March 31, 2020, the all-out endorsed sum was at Rs. 3,23,574 crores as on March 27, contrasted with Rs. 3,21,723 crore during the financial year finished in March 2019. The banks are required to audit their non-performing assets (NPAs) after September as the emphasis is currently on giving liquidity during the pandemic.

Learn more about mudra kishore yojana

Eligible Businesses for Mudra  Scheme

The following are the business entities that qualify for the Mudra Loan:

1. Self-proprietors

2. Service sector firms

3. SMEs related to agricultural activities.

4. Vendors and shopkeepers

5. Textile industry

6. Food production sector

7. Truck owners

8. Artisans

9. Small manufacturers

10. Repairing shops

11. Check mudra loan eligibility here

Where to Apply?

MUDRA Yojana under Pradhan Mantri Mudra Yojana (PMMY) can be availed online as well as offline by numerous eligible financial institutions. They are as follows:

1. Private Sectors Banks

2. NBFC

3. Commercial and Co-operative banks

4.Small finance banks

5. Regional Rural Banks (RRBs)

6. Micro Finance Institutins (MFIs).

PMMY Application Procedure

There are several banks and financial institutions that provide Mudra Loan. Mentioned below are steps to apply for mudra yojana offline as well as online through the portal.

Offline Application Process

Step 1:Visit the bank eligible for Mudra Yojana

Step 2: For the offline application, you are required to submit a self-written business plan and with the loan application form.

Step 3:Along with the mudra loan application form, submit all the required documents such as Identity proof, address proof, bank statements, Income Tax Returns, sales tax returns, Passport-sized photographs of the applicant and other such details.

Step 4:Complete all the other application procedures and formalities required by the bank, and once the documents are verified, the loan will get approved

Step 5:On approval of the loan, the desired amount shall get disbursed within specified working days.

Check the mudra loan bank list to select the lender that best suits you.

Procedure for Mudra loan Apply Online:

Step 1:Visit the online website of the financial institution you want to avail the Mudra loan from and download the online application form under the category you are eligible for (Shishu, Kishore, Tarun)

Step 2:Download the form of the loan you require and enter all your personal and business details like your name, date of birth, residential/ business address and educational qualifications, etc. in the Mudra loan application form

Step 3:Submit the application form along with the required documents with the bank or lending institution you are applying with.

Step 4: The Mudra loan online application form and attached documents are sent for verification. Once the loan is approved the amount will get disbursed in the form of a MUDRA Card from which you can directly withdraw the money from the card.

Also read about Mudra Loan Project Report