PROJECT REPORT ON

PRADHAN MANTRI MUDRA YOJANA A CASE STUDY

A PROJECT REPORT SUBMITTED TO UNIVERSITY OF MUMBAI IN

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR M.COM-II
SEMESTER IV

IN SUBJECT OF REASEARCH METHODOLOGY.

BY

NAME OF THE STUDENT: SAGAR MADAN PATIL

ROLL NO: 16-9674

COLLEGE NAME: K.V.PENDHARKAR COLLEGE

BATCH: 2016-2017

1
 DECLARATION BY STUDENT

I SAGAR MADAN PATIL, ROLL NO.16-9674, the student of M.Com

Part- II (Accountancy) Semester IV (2017), K.V.PENDHARKAR
COLLEGE,

Affiliated to University of Mumbai, hereby declare that the project

for the subject of Direct and Indirect Taxes.

PRADHAN MANTRI MUDRA YOJANA A CASE STUDY

Submitted by me to University of Mumbai, for Semester - IV

examination is based on actual work carried by me.
I further state that this work is original and not submitted
anywhere else for any examination.

Place: Dombivli Signature of the Student

Date:
Roll No.: 16-9674
Name: Sagar Madan Patil

2
 ACKNOWLEDEMENT

It is a pleasure to thank all those who made this project work possible. I
Thank the Almighty God for his blessings in completing this task. The
successful completion of this project is possible only due to support and
cooperation of my teachers, relatives, friends and well-wishers.

I am highly indebted to Principal Mrs. A. K. Ranade, Coordinator

Mr. P. V. Limaye, and my subject teacher for their encouragement,
guidance and support.
I would like to extend my sincere gratitude to all of them. I am highly
indebted to my subject Prof. Ms. Prashant Naik for her
encouragement, guidance and Support.

I also take this opportunity to express sense of gratitude to my parents

for their support and co-operation in completing this project.

Sagar Madan Patil

3
 TABLE OF CONTENTS

SR. TITLE PAGE

NO. NO.

1. CHAPTER- I Introduction. 5.

Objective of study. 6.

Research methodology. 7.

Limitation. 7.

2. CHAPTER- II Conceptual Frame work 8.

Products offering under Pradhan Mantri 11.

Mudra yojana scheme

Case Study 14

How & where to get Loans under Pradhan 15.

Mantri Mudra Yojana (PMMY)

3. CHAPTER-III Observation. 26.

4. CHAPTER-IV Findings 27.

Conclusion 28.

Webiliography & Bibliography. 29.

CHAPTER -I

INTRODUCTION:
4
 Pradhan Mantri Mudra Yojana (PMMY; Hindi:
) under the Micro Units Development and Refinance
Agency(MUDRA) Bank is a new institution being set up by
Government of India for development and refinancing activities
relating to micro units. It was announced by the Finance Minister
while presenting the Union Budget for FY 2016. The purpose of
MUDRA is to provide funding to the non corporate small business
sector. Loans worth about Rs 1 lakh crore have been sanctioned to
small entrepreneurs under the Pradhan Mantri MUDRA Yojana, Prime
Minister Narendra Modi said today, emphasising that the government
wants youth to be job creators and not job seekers. Under the scheme,
Pradhan Mantri Mudra Yojana three categories of interventions has
been named which includes

1. Shishu :- Loan up to 50,000 (US$740)

2. Kishore :-Loan ranging from 50,000 (US$740)
to 5 lakh (US$7,400)
3. Tarun :- Loan above 5 lakh (US$7,400) and below 10 lakh
(US $15,000)

These three categories will signify the growth, development and

funding needs of the beneficiaries as well as it will assure the loan
amount to be allotted by Micro Units Development and Refinance
Agency Bank. Under this scheme, according to MoneyControl.com,
nearly 1,65,000 people avail the over-drafting facility where the
government mobilised US$ 157,400,000 for this scheme by 1
September 2015. As of 26th of Sep 2015, Banks have already
disbursed 240 billion (US$3.5 billion) to 27 lakh small
entrepreneurs under this scheme.

OBJECTIVES:

5
The objectives of our project is -
To understand the concept of Pradhan Mantri Mudra Yojana.
To study the Benefits of Pradhan Mantri Mudra Yojana to Common

Peoples.
To discuss the impact of PMMY in an Indian Economy.
To study the Success or Failures of this scheme.

REASEARCH & METHDOLOGY:

6
 I have conducted the research to achieve my objectives for my
academic purpose. The Research Design helped me to give proper
guideline in my research work and also give recommendations on
the basis of the finding of the research.
The Research has been created with the help of Desk and Web
Based Research. A detailed search was conducted in Business
journals, market research sites, business newspapers, and
publications.

LIMITATION:

I have collected data through secondary sources due to

lack of time factor and suggestions which I have made is best of my
knowledge as I am student and not any expert in this particular
field.

CHAPTER-II

1. CONSEPTUAL FRAME WORK:

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 The Prime Minister, Shri Narendra Modi, today said that supporting
the small entrepreneurs of India is the biggest way to help the Indian
economy grow and prosper. He was speaking at the launch of the
Pradhan Mantri MUDRA (Micro Units Development and Refinance
Agency) Yojana in New Delhi. Stressing the contribution of small
entrepreneurs in the economy, the Prime Minister expressed
confidence that within a years time, the major banks would also
adopt the MUDRA model. The Prime Minister said that in our
country, one often experiences that things revolve around mere
perceptions, while the details often paint a different picture. Giving
the example of the perception that large industries create more
employment, he said that a look at the details reveals the reality that
only 1 crore 25 lakh people find employment in large industries,
whereas small enterprises employ 12 crore people in the country.
The Prime Minister said that while there are a number of facilities
provided for the large industries in India, there is a need to focus on
these 5 crore 75 lakh self-employed people who use funds of Rs 11 lakh
crore, with an average per unit debt of merely Rs 17,000 to employ 12
crore Indians. He said that these facts, when brought to light, led to the
vision for MUDRA Bank. The Prime Minister spoke about his time as
the Chief Minister of Gujarat, when he focused on the environment-
8
friendly cottage industry of kite making, which employs lakhs of poor
Muslims. He said that he brought a research institute from Chennai on
board which discovered that small inputs of skill development were
needed in the industry. He said that he felt proud that these small efforts
helped the kite-making industry grow from Rs. 35 crore to 500 crores in
Gujarat. The Prime Minister also gave examples of other small
businesses that, with a little help, have the potential to grow manifold.
He said that the biggest asset of the poor is his / her integrity (imaan).
By combining their integrity with capital (MUDRA), it would become
the key to their success - . Speaking about
womens self help groups in particular, the Prime Minister said that the
kind of honesty and integrity showed by these loan takers is seldom
seen in any other sector. The Prime Minister appreciated the efforts
made by the banking sector of India in making Jan Dhan Yojana a
success. He said that he envisioned that within a year, banks would
queue up to give loans to MUDRA applicants. The Prime Minister also
congratulated SIDBI on the silver jubilee of its inception, and
appreciated the work done by it in supporting Indias small scale
industry in these 25 years.

The Prime Minister said that MUDRA scheme is aimed at funding the
unfunded. He said that the small entrepreneurs of India are used to
exploitation at the hands of money lenders so far, but MUDRA will
instil a new confidence in them that the country is ready to support them
in their efforts that are contributing so heavily to the task of nation
building. The Prime Minister also spoke about the possibilities of value
addition in agriculture. He said that, we must aim at creating a whole
network of farmers engaged in value addition at the community level.
Brand building, advertising, marketing and financial support, when
given to such small entrepreneurs will strengthen the foundation of the
Indian economy, he said. The Prime Minister said that this will not
entail any big changes in the existing structures, just a little empathy, a
little understanding and a little initiative. He urged the banks to study
successful models of microfinance, tailored to the local requirements

9
and cultural contexts, which will be enable us to help the poorest of the
poor in a big way. The Prime Minister said that mere launching of new
schemes in not progress. Real success lies in real change on the ground,
as was seen in the Jan Dhan Yojana and PAHAL, which had delivered
concrete results within limited timeframes, he added. He said that the
established financial systems will soon move to the MUDRA-model of
functioning, i.e. to support entrepreneurs that give employment to a
large number of people using least amount of funds. The Union Minister
of Finance, Shri Arun Jaitley, the Union Minister of State for Finance,
Shri Jayant Sinha, and the Governor of Reserve Bank of India, Shri
Raghuram Rajan, were present on the occasion.

Products Offering Under Pradhan Mantri Mudra

Yojana Scheme:

The primary product of MUDRA will be refinance for lending

to micro businesses/units under the aegis of the Pradhan Mantri
MUDRA Yojana. The products would be covered under Shishu,
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 Kishor and Tarun category to signify the stage of
growth/development and funding needs of the beneficiary micro
unit/entrepreneur as also provide a reference point for the next phase
of graduation/growth for the entrepreneur to aspire for:

Shishu : covering loans upto Rs. 50,000/-

Kishor : covering loans above Rs. 50,000/- and upto Rs. 5 lakh
Tarun : covering loans above Rs. 5 lakh and upto Rs. 10 lakh

Businesses/entrepreneurs/units covered would include

proprietorship/partnership firms running as small manufacturing
units, shopkeepers, fruits/vegetable sellers, hair cutting saloon, beauty
parlours, transporters, truck operators, hawkers, co-operatives or body
of individuals, food service units, repair shops, machine operators,
small industries, artisans, food processors, self help groups,
professionals and service providers etc. in rural and urban areas with
financing requirements upto Rs.10 lakh.

The products initially being launched are as under:

Sector / activity specific schemes, such as, schemes for business

activities in Land Transport, Community, Social and Personal
Services, Food Product and Textile Product sectors. Schemes would
similarly be added for other sectors/activities.

Micro Credit Scheme (MCS)

Refinance Scheme for Regional Rural Banks (RRBs)/Scheduled
Co-operative Banks
Mahila Uddyami Scheme
Business Loan for Traders and Shopkeepers

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 Missing Middle Credit Scheme
Equipment Finance for Micro Units

Credit Plus Approach

MUDRA would also adopt a credit plus approach and take up

interventions for development support across the entire spectrum of
beneficiary segments. The highlights of such proposed
interventions/initiatives are as under:

Supporting financial literacy

Promotion and Support of Grass Root Institutions
Creation of Framework for Small Business Finance Entities
Synergies with National Rural Livelihoods Mission
Synergies with National Skill Development Corporation
Working with Credit Bureaus
Working with Rating Agencies

Other Proposed Offerings:

In addition to the offerings mentioned in above paras, following

facilities are also envisaged :

MUDRA Card
Portfolio Credit Guarantee
Credit Enhancement

12
MUDRA will build on experiences of some of the existing players, who
have demonstrated ability to cater to the Non Corporate Small Business
segment to build a financing architecture and right ecosystem for both
the entrepreneurs as well as the last mile financiers to the segment.
Access to finance in conjunction with rational price is going to be the
unique customer value proposition of MUDRA. The establishment of
MUDRA would not only help in increasing access of finance to the
unbanked but also bring down the cost of finance from the Last Mile
Financiers to the informal micro/small enterprises sector. The approach
goes beyond credit only approach and offers a credit plus solution for
these myriad micro enterprises, creating a complete ecosystem spread
across the country.

CASE STUDY : BANKS TO DISBURSE Rs. 1.80 LAKH CRORE LOANS

UNDER PRADHAN MANTRI MUDRA YOJANA IN FY 17.

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NEW DELHI: Having met the target last year, banks are expected to
disburse Rs 1.80 lakh crore loans under the Pradhan Mantri Mudra
Yojana (PMMY) in the current fiscal, Minister of State for
Finance Jayant Sinha said today. Last year, 3.5 crore beneficiaries
availed Rs 1.22 lakh crore loans under PMMY. The scheme is being
improved this year, Sinha said while addressing the financial literacy
camp held here. Major improvements are also in the offing for Micro
Units Development and Refinance Agency Ltd (Mudra) Yojana
including providing of technical support and hand-holding borrowers for
setting up business, he said. Besides, loan origination system would be
put in place for proper monitoring of the loans, he said. Under PMMY,
loans ranging from Rs 50,000 to Rs 10 lakh are provided to small
entrepreneurs. As of now, three products available under the PMMY are
Shishu, Kishor and Tarun, to signify the stage of growth and funding
needs of the beneficiary micro unit or entrepreneur. Shishu covers loans
up to Rs 50,000 while Kishor covers those above Rs 50,000 and up to Rs
5 lakh. Tarun category provides loans of above Rs 5 lakh and up to Rs
10 lakh. Sinha also said the government has put the economy back on
track with the help of progressive policies adopted by it. The
improvement in the economy has resulted in an increased inflow of FDI,
he said, adding that India has become the number one FDI destination in
the world and this has been achieved in two years of the NDA rule.
Various social sector schemes including Atal Pension Yojana launched
by the government have become a shield for the poor, he said. He also
said that the objective of 'Make in India' is to provide jobs to youth.

How & Where to get loans under Pradhan Mantri

MUDRA Yojana (PMMY)

1. Process Flow Diagram

14
 Borrower

To approach any of the following lending institutions in their region

Scheduled Regional Scheduled Urban Micro Financial

Commercial Co-operative Institutions viz., NBFCs,
Rural Banks
Banks (Public / Banks/ State Co- MFIs, Societies, Trusts,
Private)
(RRBs) operative Banks etc.

Lending institutions shall extend financial assistance under PMMY to eligible borrowers

Borrower Borrower Borrower Borrower

For information on MUDRA products and any kind of assistance, the borrower
can either approach/contact MUDRA office at Mumbai or the identified
MUDRA Nodal Officers, whose details are made available at MUDRAs Website.

2.What is MUDRA loan?

15
 As per Department of Financial Services, Ministry of Finance, Govt.
of Indias letter No.27/01/2015-CP/RRB dated May 14, 2015 loans
given to non-farm income generating enterprises in manufacturing,
trading and services whose credit needs are below Rs.10 lakh by all
the Public Sector Banks, Regional Rural Banks, State Co-operative
Banks and Urban Co-operative Banks will be known as MUDRA
loans under the Pradhan Mantri MUDRA Yojana (PMMY). All such
loans can be covered under refinance and/or credit enhancement
products of MUDRA.

In addition to these Banks, NBFCs and MFIs operating across the

country can also extend credit to this segment, for which they can
avail financial assistance from MUDRA Ltd., subject to their
conforming to the approved eligibility criteria. Eligibility criteria for
availing refinance/financial assistance by institutions from MUDRA
has been finalized and hosted at MUDRAs website.

To begin with, based on eligibility criteria, MUDRA has enrolled 27

Public Sector Banks, 17 Private Sector Banks, 27 Regional Rural Banks
and 25 Micro Finance Institutions (MFIs - list as per Annexure I) as
partner institutions for channelizing assistance to the ultimate borrower.

3. Whom to approach for assistance under PMMY?

Borrowers, who wish to avail assistance under Pradhan Mantri

MUDRA Yojana (PMMY), can approach the local branch of any of the
above referred institutions in their region. Sanction of assistance shall
be as per the eligibility norms of respective lending institution.
4. Whom to contact for assistance?

16
 MUDRA has identified 97 Nodal Officers at various SIDBI Regional
offices/Branch Offices to act as first contact persons for MUDRA.

For information on MUDRA products and for any kind of assistance,

the borrower can either approach/contact MUDRA office at Mumbai
or the identified MUDRA Nodal Officers, whose details (along with
contact numbers and mail ids) are made available at MUDRAs
Website. The borrower may also visit MUDRA website,
www.mudra.org.in and can send any query/suggestion to
help@mudra.org.in.

5. The Recovery Method Under Pradhan Mantri Mudra

Yojana
Mudra Bank would work on both ends, as per the scheme. It would
ensure that proper and adequate credit facility is facilitated to the
needy entrepreneurs on one hand. Whereas, accurate and efficient
recovery method is followed by the banks on the other, to create a
justifiable and balanced credit system. You will have to repay the
loans taken in a tenure ranging from 5 to 7 years.

6. Mudra Loan Complaint Office (Helpline, Tollfree,

Customer Care) Numbers
I have got a lot of people inquiring about the complaint office of
Mudra Loan Yojana. Please find the toll free number on which you can
call and file your complaint. Please Provide them detail information and
ask them for the complaint id.

17
7. Mudra Loan Eligibility Criteria
This loan is for only small businessmen. There is no exact criteria as
such. But one thing is for sure you wont get loan if you have a high
turnover. One more thing this loan is not for educational purpose, you
cannot get this loan for buying a house. You can get a vehicle loan for
buying commercial vehicle but not personal. As such all person above
18 years age can apply for Mudra Loan.

Sr. no Mudra Loan Cannot be taken for

1 Personal Requirement
2 Educational Purpose
3 Buying Personal Car or Bike
4 Rich Businessman

8. Mudra Loan V/S Personal Loan

Mudra loan Personal loan

This type of loan is an entire
This type of loan is given by both
government administered and
government and private financial
approved scheme. So it is safe and
institutions.
secure form of taking credit.
No business plan is needed to get
One must have a genuine business
personal loans. Only a justifiable reason
plan for getting Mudra loan.
is required.
This loan is issued through Mudra
There is no such issue of separate credit
credit card with a pre assigned credit
card.
limit.
Repayment tenure is as high as 7
Repayment tenure is less.
years.

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 CORPORATIONBANK

LOANAPPLICATIONFORMPRADHANMANTRIMUDRAYOJANA
(Tobesubmittedalongwithdocumentsasperthechecklist)

A.ForofficeUse:
EnterpriseName ApplicationSl.No. NameoftheBranch Category
Shishu/Kishor/Tarun
B.BusinessInformation:
Nameofthe
Enterprise
Constitution Proprietary Partnership Pvt.Ltd. Ltd.Company AnyOthers(specify)

19
 Current
Business
Address State PINCode
BusinessPremises Rented Owned
TelephoneNo. MobileNo. 91
Email:
Business Existing
Activity Proposed
DateofCommencement(DD/MM/YYYY)
WhethertheUnitisRegistered Yes No
IfRegistered(Pleasemention:Registration
no.AndtheActunderwhichregistered)
RegisteredofficeAddress
SocialCategory SC ST OBC MinorityCommunity
IfMinority Buddhists Muslims Christians Sikhs Jains Zoroastrians
Community

C.BackgroundInformationofProprietor/Partners/Directors:
S.No Name Dateof Sex Residential Academic Experiencein
Birth Addresswith Qualification thelineof
MobileNo. activity(Years)
1.
2.

S.No Idproof Idproof Address Address PAN Relationshipwiththe

no. proof proofno. Card/DINNo. officials/Directorofthe
bankifany
1.
2.

D. Names of Associate Concerns and Nature of Association:

Namesof Addressof Presently Natureof ExtentofInterestasa

Associate Associate Bankingwith Association Prop./Partner/DirectororJust
Concern Concern Concern InvestorinAssociateConcern

E.Banking/ExistingCreditFacilities:(InRs.)

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Typeof Presently Limit Outstanding Security Asset
Facilities Bankingwith Availed Ason lodged Classification
Status
SavingsAccount N.A. N.A.
CurrentAccount N.A. N.A.
CashCredit
TermLoan
LC/BG
Ifbankingwiththisbank,customerIDtobegivenhere:

ItiscertifiedthatourunithasnotavailedanyloanfromanyotherBank/FinancialInstitutionin
thepastandI/weam/arenotindebtedtoanyotherBank/FinancialInstitutionotherthanthose
mentionedincolumnno.Eabove.

F.CreditFacilitiesProposed:(InRs.)

TypeofFacilities Amount Purposeforwhich DetailsofPrimarySecurityOffered

Required (withapprox.valuetobementioned)
CashCredit
TermLoan
LC/BG
Total

G.IncaseofWorkingCapital:BasisofCashCreditLimitapplied:(InRs.)

ActualSales Projected
FY FY Sales Working Inventory Debtors Creditors Promoters Limits
Cycle In Contribution
Months

H.IncaseofTermloanrequirements,thedetailsofmachinery/equipmentmaybegiven
asunder:
Typeof Purpose Nameof TotalCostof Contributionbeing LoanRequired
machine forwhich Supplier Machine madebythe (Rs.)
/Equipment Required promoters(Rs.)

Total
RepaymentperiodwithMoratoriumperiodrequestedfor

21
22
I.PastPerformance/FutureEstimates:(InRs.)

PastPerformance/FutureEstimates(Actualperformancefortwopreviousyears,estimatesfor
currentyearandprojectionsfornext yeartobeprovidedforworkingcapitalfacilities.Howeverfor
termloanfacilitiesprojectionstobeprovidedtilltheproposedyearofrepaymentofloan)
PastYearII PastYearI PresentYear NextYear(Projection)
(Actual) (Actual) (Estimate)
NetSales
NetProfit
Capital(Net
Worthincaseof
Companies)

J.StatusRegardingStatutoryObligations:

Whether Remarks
Compliedwith (Anydetailsin
StatutoryObligations (selectYes/No) connectionwiththe
Ifnotapplicable relevantobligationtobe
thenselectN.A. given)
1.RegistrationunderShopsandEstablishmentAct
2.RegistrationunderMSME(Provisional/Final)
3.DrugLicense
4.LatestSalesTaxReturnFiled
5.LatestIncomeTaxReturnsFiled
6.AnyotherStatutoryduesremainingoutstanding

K.Declaration:

I/Weherebycertifythatallinformationfurnishedbyme/usistrue,correctandcomplete.I/Wehave
noborrowingarrangementsfortheunitexceptasindicatedintheapplicationform.Thereis/areno
overdue/statutorydueowedbyme/us.I/Weshallfurnishallotherinformationthatmayberequired
byBankinconnectionwithmy/ourapplication.Theinformationmayalsobeexchangedbyyouwith
anyagencyyoumaydeemfit.You,yourrepresentativesorReserveBankofIndiaorMudraLtd.,or
anyotheragencyasauthorisedbyyou,mayatanytime,inspect/verifymy/ourassets,booksof
accounts etc. in our factory/business premises as given above. You may take appropriate
safeguards/actionforrecoveryofbanksdues.

SpaceforPhoto SpaceforPhoto SpaceforPhoto

(SignaturesofProprietor/partner/directorwhosephotoisaffixedabove)

Date:___________________

Place:___________________

23
CHECKLIST:(Thechecklistisonlyindicativeandnotexhaustiveanddependingupon
thelocalrequirementsatdifferentplacesadditioncouldbemadeaspernecessity)

3. ProofofidentitySelfcertifiedcopyofVotersIDcard/DrivingLicense/PANCard/
AadharCard/Passport.
4. ProofofResidenceRecenttelephonebill,electricitybill,propertytaxreceipt(notolderthan
2months),VotersIDcard,AadharCard&PassportofProprietor/Partners/Directors.
5. ProofofSC/ST/OBC/Minority.
6. Proof of Identity/Address of the Business Enterprise Copies of relevant licenses/registration
certificates/otherdocumentspertainingtotheownership,identityandaddressofbusinessunit.
7. ApplicantshouldnotbedefaulterinanyBank/Financialinstitution.
8. Statementofaccounts(forthelastsixmonths),fromtheexistingbanker,ifany.
9. Last two years balance sheets of the units along with income tax/sales tax return etc.
(ApplicableforallcasesfromRs.2Lacsandabove).
10. Projectedbalancesheetsforoneyearincaseofworkingcapitallimitsandfortheperiodof
theloanincaseoftermloan(ApplicableforallcasesfromRs.2Lacsandabove).
11. Salesachievedduringthecurrentfinancialyearuptothedateofsubmissionofapplication.
12. Projectreport(fortheproposedproject)containingdetailsoftechnical&economicviability.
13. Memorandumandarticlesofassociationofthecompany/PartnershipDeedofPartnersetc.
14. Inabsenceofthirdpartyguarantee,Asset&Liabilitystatementfromtheborrowerincluding
Directors&Partnersmaybesoughttoknowthenetworth.
15. Photos(twocopies)ofProprietor/Partners/Directors.

AcknowledgementSlipforloanApplicationunderPradhanMantriMUDRAYojana

OfficeCopy:
Application(system DateofApplication
generated/manual)Number

NameoftheApplicant(s) LoanAmt.Requestedfor

SignatureofApplicant(s) SignatureofBranch
official

24
 CORPORATIONBANK
Branch:

AcknowledgementSlipforloanApplicationunderPradhanMantriMUDRAYojana

ApplicantsCopy:
Application(system DateofApplication
generated/manual)Number

NameoftheApplicant(s) LoanAmt.Requestedfor

SignatureofApplicant(s) SignatureofBranch
Official

CHECKLIST:(Thechecklistisonlyindicativeandnotexhaustiveanddependinguponthe
localrequirementsatdifferentplacesadditioncouldbemadeaspernecessity)

1) ProofofidentitySelfcertifiedcopyofVotersIDcard/DrivingLicense/PANCard/Aadhar
Card/Passport.
2) ProofofResidenceRecenttelephonebill,electricitybill,propertytaxreceipt(notolderthan2
months),VotersIDcard,AadharCard&PassportofProprietor/Partners/Directors.
3) ProofofSC/ST/OBC/Minority.
4) Proof of Identity/Address of the Business Enterprise Copies of relevant licenses/registration
certificates/otherdocumentspertainingtotheownership,identityandaddressofbusinessunit.
5) ApplicantshouldnotbedefaulterinanyBank/Financialinstitution.
6) Statementofaccounts(forthelastsixmonths),fromtheexistingbanker,ifany.
7) Lasttwoyearsbalancesheetsoftheunitsalongwithincometax/salestaxreturnetc.(Applicable
forallcasesfromRs.2Lacsandabove).
8) Projectedbalancesheetsforoneyearincaseofworkingcapitallimitsandfortheperiodofthe
loanincaseoftermloan(ApplicableforallcasesfromRs.2Lacsandabove).
9) Salesachievedduringthecurrentfinancialyearuptothedateofsubmissionofapplication.
10) Projectreport(fortheproposedproject)containingdetailsoftechnical&economicviability.
11) Memorandumandarticlesofassociationofthecompany/PartnershipDeedofPartnersetc.
12) Inabsenceofthirdpartyguarantee,Asset&Liabilitystatementfromtheborrowerincluding
Directors&Partnersmaybesoughttoknowthenetworth.
Photos(twocopies)ofProprietor/Partners/Directors.

25
 CHAPTER-III
OBSERVATION:

The Observations related with Pradhan Mantri Mudra Yojana & the
activities held by Government. From the overall information collected
from the available resources it is observed that -

Majority of the people heard about Pradhan Mantri Mudra Yojana

(PMMY) through Media Advertisement.

PM Mudra Bank already has a corpus of more than Rs. 70000 CR

And this amount would help in increasing the overall output and
creating newer jobs.

The Pradhan Mantri Mudra Yojana is said to benefit more than 58

million small business owners in the country. This is one sector
under which more than 120 million people are employed and this
working population mostly comes from less privileged sections of
society.

Government gives some subsidy on the interest but the percentage is

still not declared.

26
 CHAPTER-IV

FINDINGS:

Pradhan Mantri Mudra Yojana (PMMY) will be extended by all Public

Sector Banks such as PSU Banks, Regional Rural Banks and Cooperative
Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions
and Non Banking Finance Companies. All loans upto a loan size of 10
lakh provided for non farm sector income generating activities since April
08, 2015 is treated as PMMY.
Indian government is taking many initiatives to increase the financial
inclusion in India and Pradhan Mantri Mudra Yojana (PMMY) is a such
initiative which will link the poor or weaker section of society to the banks
which will uplift the poor people from poverty and decrease the
inequalities in society.

MUDRA operates a special scheme for women entrepreneurs; viz; Mahila

Uddyami Scheme. Assistance will be provided under all three groups, viz.
Shishu, Kishor as well as Tarun.

CONLCUSION:

27
 There are about 5.77 crore small business units. MUDRA Bank lays
down "responsible financing practices" to ward off over indebtedness and
ensure proper client protection principles and methods of recovery, besides
development of standardised set of covenants governing last mile lending
to micro enterprises. "Providing access to institutional finance to such
micro/small business units/enterprises will not only help in improving the
quality of life of these entrepreneurs but also turn them into strong
instruments of GDP growth and employment generation," the Finance
Ministry said in a statement.

WEBILIOGRAPHY & BIBILIOGRAPHY:

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1. https://en.wikipedia.org/wiki/Pradhan_Mantri_Mudra_Yojana
2. https://www.obcindia.co.in/obcnew/upload/OBC_Portal_Prime_
Minister_MUDRA_Yojna.pdf
3. https://www.pnbindia.in/new/upload/En/HO_MSME_PMMY_F
orm_English.pdf
4. http://financialservices.gov.in/PMMY%20Form.pdf
http://www.corpbank.com/sites/default/files/Common%20loan
%20Application%20form%20Under%20Pradhan%20Mantri
%20MUDRA%20Yojana.pdf

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