Pradhan Mantri Mudra Yojana
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India. It facilitates micro credit/Loan upto Rs. 20 lakhs to income generating micro enterprises engaged in the non farm sector in manufacturing, processing, trading or service sector including activities allied to agriculture
About This Scheme
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India. The scheme facilitates micro credit/Loan up to Rs. 20 lakhs to income generating micro enterprises engaged in the non farm sector in manufacturing, trading or service sectors including activities allied to agriculture such as poultry, dairy, beekeeping, etc. The Scheme provides financial assistance extended by Member Lending Institutions to the non-corporate, non-farm sector income generating activities of micro and small entities.
These micro and small entities comprise of millions of 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.
The loans under Pradhan Mantri Mudra Yojana can be availed through eligible Member Lending Institutions (MLIs), which include:
Public Sector Banks
Private Sector Banks
State operated cooperative banks
Rural banks from regional sector
Micro Finance Institution (MFI)
Non-Banking Finance Company (NBFC)
Small Finance Banks (SFBs)
Other financial intermediary approved by Mudra Ltd. as member financial institutions
Interest rate
The interest rates are declared by Member Lending Institutions from time to time as per Reserve Bank of India guidelines based on which applicable interest rate is determined.
Upfront fee/Processing charges
Banks may consider charging of upfront fee as per their internal guidelines. The upfront fee/processing charges for Shishu loans (Covering loans upto Rs. 50,000/-) are waived by most Banks.
Note :
There are no agents or middleman engaged by MUDRA for availing of Mudra Loans. The borrowers are advised to keep away from persons posing as Agents/ facilitators of MUDRA/PMMY.
Benefits
The scheme has been classified under four categories as ‘SHISHU’, ‘KISHORE’ , ‘TARUN’ and ‘TARUN PLUS’ to signify the stage of growth / development and funding needs of the beneficiary micro unit/ entrepreneur.
Shishu: Covering loans upto Rs.50,000/-.
Kishore: Covering loans above Rs.50,000/- and upto Rs. 5 lakhs.
Tarun: Covering loans above Rs. 5 lakhs and upto Rs. 10 lakhs.
Tarun Plus : Loans up to Rs. 20 lakh for enterpreneurs who have successfully repaid previous loans under the ‘Tarun’ category.
Eligibility Criteria
Eligible borrowers
Individuals
Proprietary concern.
Partnership Firm.
Private Ltd. Company.
Public Company.
Any other legal forms.
Note 01:The applicant should not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.
Note 02: The individual borrowers may be required to possess the necessary skills/experience/ knowledge to undertake the proposed activity.
Note 03: The need for educational qualification, if any, is assessed based on the nature of the proposed activity and its requirement.
Application Process
Apply Online
The following are the pre-requisites for the enrolment process:
ID Proof
Address Proof
Passport size photograph
Applicant Signature
Proof of Identity / Address of Business Enterprises
Step 01: Go to PM MUDRA
official website
and after that select the
Udyamimitra portal
Step 02: Click on Mudra loan “Apply Now”
Step 03: Select one of the following : New entrepreneur/ Existing Entrepreneur/Self-employed professional
Step 04: Then fill in the name of the applicant, email and Mobile number and Generate OTP
After Successful Registration
Step 01: Fill in Personal Details and Professional Details.
Step 02: Select hand-holding agencies if any help is required for preparing project proposals etc., otherwise click “Loan Application Center” and apply.
Step 03: Select the category of loan required – Mudra Shishu / Mudra Kishore/ Mudra Tarun.
Step 04: The applicant then needs to fill in the Business Information like business name, business activity, etc. and select industry type like Manufacturing, Service, Trading or activities allied to agriculture.
Step 05: Fill in other information like owner details, existing Banking/ Credit facilities, proposed credit facilities, future estimates and preferred lender.
Step 06: Attach all required Documents i.e. ID proof, Address proof, Applicant photo, Applicant Signature, Proof of Identity/ Address of Business Enterprise, etc.
Step 07: Once the application is submitted, an Application Number gets generated which needs to be kept for future reference.
Official Source: View on myScheme.gov.in
Benefits
The scheme has been classified under four categories as 'SHISHU', 'KISHORE' , 'TARUN' and 'TARUN PLUS' to signify the stage of growth / development and funding needs of the beneficiary micro unit/ entrepreneur.
Shishu: Covering loans upto Rs.50,000/-.
Kishore: Covering loans above Rs.50,000/- and upto Rs. 5 lakhs.
Tarun: Covering loans above Rs. 5 lakhs and upto Rs. 10 lakhs.
Tarun Plus : Loans up to Rs. 20 lakh for enterpreneurs who have successfully repaid previous loans under the 'Tarun' category.
Application Process
Apply Online
The following are the pre-requisites for the enrolment process:
ID Proof
Address Proof
Passport size photograph
Applicant Signature
Proof of Identity / Address of Business Enterprises
Step 01: Go to PM MUDRA official website
and after that select the Udyamimitra portal
Step 02: Click on Mudra loan "Apply Now"
Step 03: Select one of the following : New entrepreneur/ Existing Entrepreneur/Self-employed professional
Step 04: Then fill in the name of the applicant, email and Mobile number and Generate OTP
After Successful Registration
Step 01: Fill in Personal Details and Professional Details.
Step 02: Select hand-holding agencies if any help is required for preparing project proposals etc., otherwise click "Loan Application Center" and apply.
Step 03: Select the category of loan required - Mudra Shishu / Mudra Kishore/ Mudra Tarun.
Step 04: The applicant then needs to fill in the Business Information like business name, business activity, etc. and select industry type like Manufacturing, Service, Trading or activities allied to agriculture.
Step 05: Fill in other information like owner details, existing Banking/ Credit facilities, proposed credit facilities, future estimates and preferred lender.
Step 06: Attach all required Documents i.e. ID proof, Address proof, Applicant photo, Applicant Signature, Proof of Identity/ Address of Business Enterprise, etc.
Step 07: Once the application is submitted, an Application Number gets generated which needs to be kept for future reference.
References & Official Links
Scheme Details
| Full Name | Pradhan Mantri Mudra Yojana |
| Short Title | PMMY |
| Level | Central |
| Scheme For | Infra |
| Ministry | Ministry Of Finance |
| Categories | Banking,Financial Services and Insurance |
| States | All India |
| Gender | All |
| Area | Rural |
| Income Limit | ₹2,000,000/year |
| Source | www.myscheme.gov.in ↗ |
Deepika Raikwar · 📅 04 Jun 2026
Deepika Raikwar is an Education Analyst and scholarship researcher who focuses on public welfare and merit-based scholarships. She simplifies complex eligibility rules, deadlines, and application processes to help common people access reliable funding opportunities worldwide.
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