Pradhan Mantri Mudra Yojana | Online Shishu Mudra

Pradhan Mantri MUDRA Yojana was launched to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them. Canara Bank is extending the finance to Micro units under the scheme and implemented Online Shishu Mudra.

Nature of facility

Term Loan and/or working capital (fund based/non-fund based).

Purpose

"To meet business related Term Loan and Working Capital requirements."

Target Group

Non–Corporate Small Business Segment (NCSBS) / Micro Enterprises (as defined in MSME Act, 2006) comprising of Individuals /proprietorship / partnership firms running as small 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, whose financing needs are up to Rs.10 lakhs.

Quantum of loan

SHISHU	Loan amount up to Rs.50000
KISHOR	Loan amount from Rs.50001 to Rs.500000/-
TARUN	Loan amount from Rs.500001 to Rs.1000000/-
TARUN PLUS	Tarun Plus: covering loans above 10 lakhs and upto 20 lakhs for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category.

Margin

Up to Rs.25000/-	NIL
Above Rs.25000/-	15 to 25% 30% - Where book debts is held as prime security

Repayment Period

Working Capital : Tenable for one year.
Term Loan : Repayable in maximum of 5-7 years in suitable monthly/equated monthly instalments.

Repayment holiday of 2 to 3 months may be permitted wherever necessary.

Security

Primary : Assets created out of loan - Hypothecation of moveable assets and/or Mortgage of immovable property and existing business assets of the borrower only.
Collateral : No Collateral security or third party/ies guarantee should be attached with the Micro loans.

Existing customers with satisfactory track record for last 2 years (both conduct of account with financing branch and financials of the applicant unit).
New customers subject to satisfactory Opinion Letter from their existing bankers.
New units subject to satisfactory market opinion on the promoters.
Only Individuals/Proprietorships/partnerships/SHGs are eligible for finance under the scheme.
- Private limited company, HUF and Trusts are not eligible.
- Units whose Risk rating is High and/or grading as per scoring norms is Higher/Highest are not eligible.
Loan under ‘Tarun Plus’ category to be extended only to entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category.

Customer Identification proof along with NF998 MSME application.
Address Proof of unit and promoters.
License/permissions.
Financial papers for the last 2 years with ITR and projections of next 1 year.
Details of Guarantor with proof of assets.
Sales achieved during the current Financial Year up to date of submission of application.
Project Report containing details of technical & economic viability.

Applicant should not be defaulter in any Bank/Financial institution.
In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.