Pradhan Mantri Mudra Yojana (PMMY)

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. Budget 2024 introduced the Tarun Plus category, extending Tarun loans up to ₹20 lakhs for businesses with a good repayment track record. 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.

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PMMY Mudra Loan Business Loan Government Scheme Small Business Finance Startup Loan

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Key Benefits

Key benefits of Pradhan Mantri Mudra Yojana:

Shishu loans up to ₹50,000 for micro-enterprises
Kishore loans from ₹50,000 to ₹5 lakhs for growing businesses
Tarun loans from ₹5 lakhs to ₹20 lakhs for expanded operations (Tarun Plus up to ₹20 lakhs introduced in Budget 2024)
No collateral required for loans under Shishu category
Low interest rates compared to market rates
Minimal documentation process
Both new and existing businesses can apply
Special focus on women entrepreneurs

Eligibility Criteria

Eligibility criteria for PMMY loans:

  • Indian citizens aged 18 years and above
  • Individual entrepreneurs, proprietary firms, and companies
  • Small and micro enterprises in non-farm sector
  • Manufacturing, trading, and service sector businesses
  • No defaults with any bank or financial institution
  • Relevant skills/experience in proposed business activity
  • Both new and existing business ventures

Application Process

Online Application

Steps to apply for PMMY loan online:

  1. 1 Visit the official PMMY portal (www.mudra.org.in)
  2. 2 Register and create your account
  3. 3 Fill the online application form
  4. 4 Upload required documents
  5. 5 Select loan category (Shishu/Kishore/Tarun)
  6. 6 Choose preferred bank/financial institution
  7. 7 Submit application and track status online

Offline Application

Steps to apply for PMMY loan at bank branch:

  1. 1 Visit nearest participating bank branch
  2. 2 Collect PMMY loan application form
  3. 3 Fill form with business details and loan requirement
  4. 4 Submit completed form with required documents
  5. 5 Attend interview with bank official if required
  6. 6 Complete verification process
  7. 7 Receive loan sanction and disbursement

Required Documents

Documents needed for PMMY loan application:

Identity proof (Aadhaar/PAN/Voter ID)
Address proof (utility bills/rental agreement)
Passport size photographs
Business registration documents (if applicable)
Proof of business address
Bank statements for last 6 months
Business plan or proposal

Frequently Asked Questions