{"id":13782,"date":"2021-01-27T05:28:45","date_gmt":"2021-01-27T05:28:45","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=13782"},"modified":"2021-01-27T05:29:27","modified_gmt":"2021-01-27T05:29:27","slug":"how-to-apply-for-a-business-loan-under-pmmy-scheme","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/how-to-apply-for-a-business-loan-under-pmmy-scheme\/","title":{"rendered":"How to Apply for a Business Loan under PMMY Scheme?"},"content":{"rendered":"\n

A not-so-recent government scheme gaining prominence is the Pradhan Mantri Mudra Yojana(PMMY). Launched in 2015, this scheme, under the purview of the Micro Units Development and Refinance Agency (MUDRA) lets lenders provide loans up to Rs. 10 lakhs to Micro, Small, and Medium Enterprises (MSMEs).<\/p>\n\n\n\n

A noteworthy point here is that the lending institution does not require securities or collaterals to grant the MUDRA loan. Small manufacturing business owners, fruit and vegetable sellers, artisans, shopkeepers, and entrepreneurs practising agricultural activities can avail of this loan.<\/p>\n\n\n\n

The three loan types under the PMMY scheme, named- Shishu<\/em>, Kishore<\/em>, and Tarun<\/em>, allow entrepreneurs to borrow funds according to their business stages.<\/p>\n\n\n\n

Furthermore, under PMMY, there are no minimum loan amount criteria, and the repayment tenure comes with flexible EMI options and a lower business loan interest rate. However, the funds must be utilised only towards the expansion and growth of the enterprise.<\/p>\n\n\n\n

Additional Read:<\/strong> How to Get a Small Business Loan from the Government<\/a><\/p>\n\n\n\n

MUDRA loans can be applied through online and offline methods. Here, we list both the options for your convenience:<\/p>\n\n\n\n

Online method<\/strong><\/h2>\n\n\n\n
  1. You need to download the application form from the official websites of lending institutions that are eligible to offer this business loan<\/a> as directed by RBI.<\/li>
  2. Next, fill the fields with details as needed in the application form.<\/li>
  3. Submit the form with the required authentic documents for references.<\/li>
  4. A representative from the lending institution contacts you to further the formalities for the application.<\/li>
  5. Once your application is processed and verified with the supporting documents, the loan stands approved, and the lender starts disbursing funds.<\/li><\/ol>\n\n\n\n

    Alternatively, borrowers can also apply online through the Udyamimitra<\/em> portal at www.udyamimitra.in<\/a> to avail for a PMMY business loan.<\/p>\n\n\n\n

    Offline method<\/strong><\/h2>\n\n\n\n
    1. Visit the nearest and desired MUDRA loan provider, either a commercial or private lending institution.<\/li>
    2. Propose your business plan to the representatives in a self-written style.<\/li>
    3. Submit the loan application form available at the lending institution after duly filling it.<\/li>
    4. Along with the application, furnish the required documentation for verifying details.<\/li>
    5. Complete all the formalities and procedures requested by the lender.<\/li>
    6. Upon successful verification, the loan shall be approved, and the funds will be disbursed to the mentioned account within specified working days.<\/li><\/ol>\n\n\n\n

      Documents required for MUDRA loan application<\/strong><\/h2>\n\n\n\n