The Pradhan Mantri Mudra Yojana (PMMY) is a flagship initiative by the Government of India aimed at supporting micro and small enterprises. This scheme provides collateral-free loans up to ₹10 Lakhs to individuals engaged in non-farm income-generating activities in sectors like manufacturing, trading, services, and allied agriculture (e.g., poultry, beekeeping, dairy).

Whether you’re a budding entrepreneur or a self-employed individual, PMMY offers financial assistance to help scale your business through trusted financial institutions across the country.

Key Highlights of PMMY Business Loan

• Scheme Name: Pradhan Mantri Mudra Yojana (PMMY)
• Launched By: Government of India
• Loan Limit: Up to ₹10 Lakhs
• Categories: Shishu (Up to ₹50,000), Kishore (₹50,001 – ₹5 Lakhs), Tarun (₹5 Lakhs – ₹10 Lakhs)
• Target Beneficiaries: Small entrepreneurs, micro-enterprises, start-ups, allied agri-businesses
• Interest Rate: As per RBI guidelines (varies by lender)
• Loan Type: Collateral-free business loans

Benefits of PM Mudra Loan Scheme

• Provides easy access to capital for small and micro businesses
• No collateral or security required for loans
• Supports a wide range of non-farm income-generating activities
• Flexible loan slabs to match the stage of business growth
• Loans available through Public and Private Banks, MFIs, NBFCs, and Cooperative Banks
• No processing fees for Shishu category loans in most banks
• Empowers women entrepreneurs, artisans, traders, and service providers

Loan Categories under PMMY

Eligibility Criteria

Eligible Applicants:
• Individuals
• Sole Proprietorships
• Partnership Firms
• Private Limited Companies
• Public Limited Companies
• Other legal entities

Additional Conditions:
• The applicant should not be a defaulter in any bank/financial institution
• Should possess the necessary skills/experience/knowledge for the proposed activity
• Educational qualification is assessed based on business type

How to Apply – Online Process

1. Visit the official PM MUDRA Website

2. Redirect to the Udyamimitra Portal

3. Click on “Apply Now” under MUDRA loans

4. Choose applicant type: New Entrepreneur / Existing Entrepreneur / Self-employed

5. Register using name, email ID, and mobile number (OTP-based verification)

6. Fill in personal and business details

7. Choose the relevant category: Shishu / Kishore / Tarun

8. Enter business information: Activity, Industry Type, Ownership Details, etc.

9. Upload required documents

10. Submit and receive an Application Number for tracking

Necessary Documents for Application

For Shishu Loans (Up to ₹50,000)

• ID Proof (Aadhaar / PAN / Voter ID / DL / Passport)
• Residence Proof (Electricity bill, Aadhar, Telephone bill, etc.)
• 2 Recent Passport-size Photos
• Quotation of Machinery / Equipment to be purchased
• Business Identity / Address Proof (Licenses, Shop Act, etc.)

For Kishore & Tarun Loans (₹50,001 to ₹10 Lakhs)

• ID and Address Proof of Applicant and Business
• Photographs (2 recent)
• Quotation / Project Cost Estimates
• Bank Account Statement (Last 6 months)
• ITRs and Balance Sheets (for loans above ₹2 Lakhs)
• Business Plan / Project Report
• Ownership documents – Partnership deed / MoA / AoA
• Net worth statement (if required)

Interest Rate & Processing Charges

• Interest rates are decided by the lending institutions as per RBI guidelines
• No processing fee for Shishu category loans (in most banks)
• Charges for Kishore and Tarun loans may vary by bank policy

Where to Apply for PMMY Loans

Loans can be availed through the following Member Lending Institutions (MLIs):

• Public Sector Banks
• Private Sector Banks
• Regional Rural Banks (RRBs)
• State Cooperative Banks
• Micro Finance Institutions (MFIs)
• Non-Banking Financial Companies (NBFCs)
• Small Finance Banks (SFBs)

Important Advisory

⚠️ MUDRA or PMMY does not appoint any agents or middlemen for loan applications. All applications must be made directly through banks or online. Beware of fraudsters claiming to represent the scheme.

Frequently Asked Questions (FAQs)

Q: Is Khadi activity eligible under the PMMY Scheme?
Yes, Khadi and village industry activities are eligible for loans under PMMY.

Q: Can I get a MUDRA loan for purchasing a CNG auto, taxi, or tempo?
Yes, loans can be sanctioned for commercial vehicles like CNG autos, taxis, or tempos.

Q: I only have a savings bank account. Can I apply for a MUDRA loan?
Yes, if you have a savings account and meet eligibility criteria, you can apply.

Q: What is the average processing time for Shishu category loans?
Shishu loans are usually processed within 7–10 working days, depending on the bank.

Q: Is submission of ITR mandatory for loans up to ₹10 Lakhs?
For loans above ₹2 Lakhs, ITRs and financial statements are generally required.

References & Useful Links

• MUDRA Official Portal
• Udyamimitra Portal
• Frequently Asked Questions – PMMY