Mudra Yojana: Products, Eligibility Criteria & Benefits
Mudra means Micro Units Development & Refinance Agency Mudra. A government scheme that provides a loan of 20 lakh to entrepreneurs. However, the loan is given to the entrepreneurs whose loans are paid under the ‘Tarun’ category. On April 8, 2015, the Mudra Yojana came into existence. The vision of Mudra Yojana is to have economic and social development.
Small enterprises and corporations can benefit from Mudra Yojana. Commercial banks, RRBs, small finance banks, MFIs and NBFCs give the loan. This is known as the Mudra loan under the Pradhan Mantri Mudra Yojana.
Mudra Products
1. Shishu: Loans up to Rs 50,000.
2. Kishore: Loans between 50,000 and Rs 5 lakh.
3. Tarun: Loans between Rs 50,000 and Rs 10 lakh.
4. TarunPlus: Loans between Rs10 lakhs and Rs 20 lakh
These products provide stability to businesses and fulfil the funding needs of entrepreneurs.
Mudra Yojana Performance
Financial Year: 2015 -2016
| No. Of PMMY Loans Sanctioned : | 34880924 |
| Amount Sanctioned | Rs. 137449.27 Crore |
| Amount Disbursed | Rs. 132954.73 Crore |
Financial Year: 2016 -2017
| No. Of PMMY Loans Sanctioned : | 39701047 |
| Amount Sanctioned | Rs. 180528.54 Crore |
| Amount Disbursed | Rs. 175312.13 Crore |
Financial Year: 2017 -2018
| No. Of PMMY Loans Sanctioned : | 34880924 |
| Amount Sanctioned | Rs. 137449.27 Crore |
| Amount Disbursed | Rs. 132954.73 Crore |
Financial Year: 2018 -2019
| No. Of PMMY Loans Sanctioned : | 59870318 |
| Amount Sanctioned | Rs. 321722.79 Crore |
| Amount Disbursed | Rs. 311811.38 Crore |
Financial Year: 2019 -2020
| No. Of PMMY Loans Sanctioned : | 59870318 |
| Amount Sanctioned | Rs. 337495.53 Crore |
| Amount Disbursed | Rs. 329715.03 Crore |
Financial Year: 2020 - 2021
| No. Of PMMY Loans Sanctioned : | 50735046 |
| Amount Sanctioned | Rs. 321759.25 Crore |
| Amount Disbursed | Rs. 311754.47 Crore |
Financial Year: 2021 - 2022
| No. Of PMMY Loans Sanctioned : | 53795526 |
| Amount Sanctioned | Rs. 339110.35 Crore |
| Amount Disbursed | Rs. 331402.20 Crore |
Financial Year: 2022 - 2023
| No. Of PMMY Loans Sanctioned : | 62310598 |
| Amount Sanctioned | Rs. 456537.98 Crore |
| Amount Disbursed | Rs. 450423.66 Crore |
Financial Year: 2023 - 2024
| No. Of PMMY Loans Sanctioned : | 66777013 |
| Amount Sanctioned | Rs. 541012.86 Crore |
| Amount Disbursed | Rs. 532358.35 Crore |
Financial Year: 2024 - 2025
| No. Of PMMY Loans Sanctioned : | 37478329 |
| Amount Sanctioned | Rs. 365810.44 Crore |
| Amount Disbursed | Rs. 356743.28 Crore |
Eligibility Criteria For Mudra Yojana
1. Should be an Indian citizen between 18 and 65.
2. Good credit history.
3. Should have a source of income like from manufacturing, trading, services etc
4. Entrepreneurs should have a workable business plan.
5. History that shows the loan is repayable.
Benefits of Mudra Yojana
1. Provides benefits for the non-corporate sector.
2. There is no need for a broker agent to avail of the mudra loan.
3. Provides loans to the businessman at reasonable rates.
4. Also there is no processing fee for loans.
5. There is no collateral for taking this loan
Also, Check - Types of Stock Brokers in Share Market
How To Apply For Mudra Loan
1. Visit JanSamarth website.
2. On the homepage scroll down and click on “Check Eligibility” for Business Activity Loan.
3. Select the type of loan.
4. Select “Other Business Loan” if you don’t have a specific business. And fill in the details.
5. After filling details click on “Calculate Eligibility”.
6. Your eligibility will be shown on the next page.
7. After that click on “Login Apply”.
8. Enter your mobile number and captcha. Also, tickmark the terms and conditions then click on Get OTP.
9. Enter OTP for OTP Verification.
10. Click on the “Proceed” button.
11. Now click on “Continue”.
12. On the next page fill in the necessary details.
13. After accepting all conditions, click on Agree & Proceed.
14. Enter PAN details and click Submit.
15. Now do the “Udyam Registration Verification". If you don’t have Udyam ID then click on Udyam Registration.
16. Now do Aadhar Verification and enter your Aadhar Number.
17. Enter the OTP that will be sent to your registered mobile number.
Conclusion
So Mudra Yojana is beneficial for the non corporate entrepreneurs. Help the Indian economy to grow at a faster rate by providing mudra loans. So this explains Mudra Yojana.
After writing content around various niches, I got aligned towards finance and started writing content that provides finance insights.
