Mudra loans under the PMMY or Pradhan Mantri Mudra Yojana scheme were designed by the Government of India to help small businesses to meet their operating expenses and capital needs using financial schemes. The following are the Pradhan Mantri Awas Yojana eligibility criteria:
- The applicant has to be at least 18 years old, and at most 65 years old
- Pradhan Mantri Mudra Yojana Loan can be availed by businesses that generate income and are non-farm in nature, in manufacturing, trading and services
- The credit requirement to avail Pradhan Mantri Awas Yojana Loan is Rs. 10,00,000 or lower
- The entity must be involved in allied agricultural service since April 1, 2016
Who Is Eligible To Provide Pradhan Mantri Mudra Yojana Loan?
All private and public sector banks that are regional and rural are eligible to provide PMMY loan, considering they meet the following eligibility criteria for mudra loan:
- The bank must have generated profits in the past two years
- The net performing assets cannot be over 15% for public, 10% for private and 6% for regional rural banks
- The net worth has to be over Rs. 250 crore for public and private banks, and above Rs. 50 crore for rural banks
Who Can Avail Pradhan Mantri Mudra Yojana Loan?
The following are the entities who can avail the Pradhan Mantri Mudra Yojana Loan:
- Shopkeepers and business vendors: Shopkeepers and business vendors are eligible to apply for the Pradhan Mantri Mudra Yojana Loan for an amount of upto Rs. 10,00,000 for business activities, non-farming activities, trading
- Textile industries: Textile industries like knitting, handloom, khaadi, etc. can avail various financial benefits from the Pradhan Mantri Mudra Yojana Loan
- Food production entrepreneurs: Entrepreneurs that are dealing with tiffin services, food stalls or cold storage can avail the Pradhan Mantri Mudra Yojana Loan
- Agricultural activity: The Pradhan Mantri Mudra Yojana Loan can be availed for dairy farming, fishing, poultry, and improvement of wells and small canals
- Businesses that provide services to society or a community: The PMMY Loan can also be availed by businesses that provide services such as dry cleaning stores, tailoring shops, medical shops, salons and beauty parlors, gymnasiums, etc.
Documents Required To Avail The Pradhan Mantri Mudra Yojana Loan
Your Pradhan Mantri Awas Yojana Eligibility depends on your ability to produce certain official documents, which are as follows:
- Filled up application form of PMMY
- Two passport sized photographs of the applicant
- Proof of identity – Passport, Driving License, Aadhar Card, or Voter ID, etc.
- Residential address proof – Passport, Aadhar Card, Electricity or Telephone bill, Bank statement, etc.
- Proof of residence ownership or enterprise ownership
- Qualification proof, business continuity proof
- References for trade
- CA and ITR certified financials of 2 years
- Last 12 months’ bank statement
- Income Tax returns for past 2 years
Now that you are aware of the documents that are required for filling up the application form of a PMMY loan, all you need to do is keep your papers ready and apply for the loan as per your business requirements.