SBI Pradhan Mantri Mudra Yojana (PMMY) Scheme for Collateral Free Bank Loan





Good time for small entrepreneurs! Hassle free loan under Pradhan Mantri Mudra Yojana (PMMY) Scheme which is initiated by the Ministry of Finance, Govt. of India to "Fund the Unfunded". PMMY allows loans through Public Sector banks, Regional banks, Rural banks, State and Urban cooperative banks to manufacturing, trading and services sector that comes upto Rs.10 lakhs fund needs. All of above PMMY is a Collateral Free loan Scheme.

SBI Pradhan Mantri Mudra Yojana (PMMY) Scheme for Collateral Free Bank Loan

What is PMMY Collateral Free Loan Scheme?

Pradhan Mantri Mudra Yojana (PMMY) is the Flagship scheme guided and supported by Govt. of India. It was launched on 8th April 2015 by Honorable Prime Minister Sri Narendra Modi. The Moto of PMMY scheme is “Funding the Unfunded” aims to provide loan facilities to about 5.77 crores Small and Micro Enterprises engaged in non-farm activities in the country. A major part of the beneficiaries comes under manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas. The PMMY scheme is being implemented under three categories: PMMY Shisu loan, PMMY Kishor loan, and PMMY Tarun loan.

1. PMMY Shishu Loan Scheme

PMMY Shisu loan will provide maximum of Rs. 50,000/- can be utilized as fund based working capital or as Term loan for any business except farm / agriculture income generation. Overdraft of Rs. 5,000/- under Pradhan Mantri Jan Dhan Yojana (PMJDY) can be considered as loans under PMMY Shshu scheme.

2. PMMY Kishor Loan Scheme

PMMY Kishor loan scheme suitable for amount required above Rs. 50,000/- and upt Rs. 5,00,000/- which can be utilized to both as working capital and as Term Loan for any business except farm / agriculture income generation.

3. PMMY Tarun Loan Scheme

PMMY Tarun loan scheme to be selected if your fund requirement will be above Rs. 5,00,000/- but less than Rs. 10,00,000/-. It can be utilized to both as working capital and as Term Loan for any business except farm / agriculture income generation.

What is "MUDRA" Bank?

MUDRA is the acronym for Micro Units Development and Refinance Agency. It is a new financial entity for developing and Refinancing financial intermediaries like Bank, NBFC, MFI, who are in the business of lending to smaller of the Micro enterprises in Manufacturing, Trading and Services sector.

What is MUDRA Card?

MUDRA Card is a RuPay debit card which enables the borrower to avail credit in a hassle free and flexible manner. It will provide a facility of working capital arrangement in the form of Cash Credit (CC) / Over Draft (OD) to the borrower. It can be used for drawing cash from ATM or Business Correspondent or make purchase using Point of Sale (POS) machine.

SBI PMMY Loan Eligibility

  1. Individuals and Small business units with a business plan for non farm income generating activity in manufacturing and services sector whose credit requirement is less than 10 lakhs are eligible for availing loans under PMMY.
  2. Borrower should not have defaulted to any financial institution in respect of loans availed earlier.

SBI PMMY Loan Margin

NIL

SBI PMMY Loan Processing Charge

  1. Loan amount upto Rs. 50,000: Nil
  2. Loan amount above 50,000 and upto 10 lakhs: 0.50% of Loan amount (in addition Service Tax as per applicable rates to be recovered)

Note: Other charges as applicable.

SBI PMMY Loan Interest Rate

Interest Rates are linked to Base Rate (BR at 9.30%)

  1. CGTMSE covered accounts - BR+200 bps i.e. 11.30% pa (As on 10.03.2016)
  2. Non-CGTMSE accounts - BR +230 bps i.e. 11.60% pa (As on 10.03.2016)

SBI PMMY CGTMSE Guarantee

  • All borrowers under PMMY with activity as Manufacturing and services are eligible to be covered under CGTMSE guarantee scheme.
  • Retail trade is not eligible for CGTMSE coverage

Security for SBI PMMY Loan

  1. Primary Security: Hypothecation of stocks / machinery / movables acquired out of Bank's finance.
  2. Collateral: No collateral security to be obtained for all loans upto Rs. 10 lacs extended to units in the MSE sector as per RBI guidelines.

Repayment Period of SBI PMMY Loan

  1. Working Capital: Repayable on demand.
  2. Term Loan: 3 - 5 years including a moratorium of upto 6 months.

Documents to be Submitted for SBI PMMY Loan

  1. Documents Required for Shishu Loan Scheme

    1. Proof of identity - Self certified copy of Voter’s ID card / Driving License / PAN Card /  Aadhaar Card/Passport/Photo Ids issued by Govt. authority etc.
    2. Proof of Residence - Recent telephone bill, electricity bill, property tax receipt, Voter’s ID card, Aadhaar Card, Passport of Individual/ Proprietor/Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.
    3. Applicant’s Recent Photograph (2 copies) not older than 6 months.
    4. Proof of SC/ST/OBC/Minority, if applicable.
    5. Proof of Identity / Address of the Business Enterprise –if available.
    6. Statement of Account from the existing Banker for the last six months, if any.
    7. Quotation of Machinery / other items to be purchased
  2. Documents Required for Kishore and Tarun Loan Schemes

    1. Proof of identity - Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card/Passport/Photo Ids issued by Govt. authority etc.
    2. Proof of Residence - Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhaar Card, Passport of Individual/ Proprietor/Partners, Certificate issued by Govt. Authority/Local Panchayat / Municipality etc.
    3. Proof of SC/ST/OBC/Minority, if applicable.
    4. Proof of Identity / Address of the Business Enterprise – Copies of relevant Licenses / Registration Certificates / lease or Rent agreement/ Other Documents pertaining to the ownership, identity of address of business unit / Udyog Aadhaar Memorandum.
    5. Statement of Account from the existing Banker for the last six months, if any.
    6. last two years unaudited balance sheets of the existing units along with income tax /sales tax returns etc. (Applicable for loans of  Rs. 2 lacs and above).
    7. Projected balance sheets of start-ups/existing units for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for loans of Rs. 2 lacs and above).
    8. Sales achieved during the current financial year up to the date of submission of application (in case of existing units).
    9. Proforma Invoices/Quotations for the assets to be purchased and estimates for the civil works, if any to be undertaken. Aspect of technical feasibility and economic viability may be discussed with borrower if felt necessary.
    10. Asset & Liability statement of the borrower including Directors  & Partners.
    11. Memorandum and Articles of association of the company/Partnership Deed of Partners etc. wherever applicable.
    12. Photos (two copies) of applicant/Proprietor/ Partners/ Directors not older than 6 months.

How to Apply for Mudra Bank Loan?

To apply for MUDRA Bank Loan, you can down load the form from here and submit it to the nearest bank branch along with documents listed above. If you are unable to download it, use attachment link to download the form.

Tags

Comments

Great Stuff on Mudra Loan

Hey,

I was checking some of the articles on your site and found your post about "SBI Pradhan Mantri Mudra Yojana (PMMY) Scheme for Collateral Free Bank Loan"

Keep up the awesome work!

Thanks,
Shruthi

Respected Sir

I would like to start a small industry business for all types of paper cups and paper plates from prime minister mudra yojana scheme at my residence. Therefore please advise me how to arrange loan for the purpose of purchase a machinery and raw materiel.

Add new comment