Pradhan Mantri Mudra Yojana (PMMY) was launched in April 2015 to promote entrepreneurship and financial inclusion in India. It helps small and unfunded entrepreneurs access affordable, collateral-free loans of up to ₹10 lakh through banks, microfinance institutions (MFIs), and NBFCs for non-farm income-generating activities such as trading, manufacturing, and services.
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The scheme aims to support self-employment, boost small businesses, and strengthen the grassroots economy by providing easy access to formal credit.
Pradhan Mantri Mudra Yojana (PMMY) is one of the most impactful government schemes launched by the Government of India to promote entrepreneurship and support micro and small businesses. This government-backed loan scheme provides collateral-free funding to non-corporate, non-farm micro and small enterprises to help them start, expand, or modernise their businesses.
Under PMMY, loans are offered in different categories based on business needs and growth stages. These categories ensure structured financial support at different stages of business development, helping micro-entrepreneurs become self-reliant and financially stable.
Under Pradhan Mantri Mudra Yojana (PMMY), loans are provided in four categories based on the stage and funding needs of the business:
Loans up to ₹50,000 for new and start-up micro enterprises.
Loans from ₹50,001 to ₹5 lakh for growing and expanding businesses.
Loans from ₹5,00,001 to ₹10 lakh for established enterprises seeking further growth.
Loans from ₹10,00,001 to ₹20 lakh for well-performing businesses requiring higher financial support. (Used by some lenders only)
The main objectives of Pradhan Mantri Mudra Yojana are:
To provide easy and affordable credit to micro and small entrepreneurs.
To bring unbanked and informal businesses into the formal financial system.
To support first-generation entrepreneurs and business expansion.
To reduce dependence on informal moneylenders.
To promote self-employment and job creation.
To empower entrepreneurs from SC, ST, OBC, and weaker sections.
To strengthen grassroots businesses in manufacturing, trading, and services.
Loans under Pradhan Mantri Mudra Yojana (PMMY) are provided through the following authorised lending institutions:
Scheduled Commercial Banks (Public Sector, Private Sector, and Foreign Banks)
Regional Rural Banks (RRBs)
Small Finance Banks
Co-operative Banks
Non-Banking Financial Companies (NBFCs) registered with RBI
Microfinance Institutions (MFIs) recognised by RBI/MUDRA
No security required for eligible MUDRA loans.
Funding from ₹50,000 to ₹20 lakh under different categories.
Supports manufacturing, trading, and service sector businesses.
Offered through banks, NBFCs, MFIs, and authorised institutions.
Charged as per lender policies and RBI guidelines.
Tenure based on business cash flow and repayment capacity.
Minimal or no fees, especially for Shishu loans.
RuPay debit card for easy access to working capital.
Encourages first-time and small business owners.
Available at bank branches across India.
You can apply for a MUDRA loan offline at a lender branch or online via official government-linked portals.
Go to the nearest branch of a bank, NBFC, MFI, RRB, or Co-operative Bank that offers MUDRA loans.
Ask for the official MUDRA Loan application form from the bank officer (many banks provide printed forms at the branch).
Fill in personal, business, and financial details accurately.
You must submit KYC (identity, address), business details, proof of enterprise, and any lender-specific documentation.
Hand over the form and documents to the bank official for processing.
The bank verifies your application and may carry out field or credit checks before sanction.
Once approved by the lender, the loan is sanctioned and disbursed to your bank account.
Official Note: MUDRA loans are extended by banks/NBFCs/MFIs as notified by Micro Units Development & Refinance Agency Ltd (MUDRA Ltd).
While the core government site lists eligibility and scheme details, official online application for MUDRA loans is generally through portals linked to the government ecosystem:
Go to https://udyamimitra.in/ — the MSME portal where MUDRA loan applications can be submitted.
Create an account or log in with your credentials (mobile number/Aadhaar/Email).
Start New Loan Application - Choose the option to apply for a new loan.
Select Loan Categories such as Choose Shishu, Kishore, Tarun, or Tarun Plus based on your business needs.
Enter Business & Personal Details - Fill in your name, business type, loan amount required, and other details.
Upload Supporting Documents - Upload required documents (KYC, proof of business, bank statements, etc.).
Select Lending Institution - Choose a lending partner (bank/NBFC/MFI) from the list and submit your application.
Track Application - After submission, you can check the status via the same portal dashboard.
UdyamiMitra is widely used for MSME and MUDRA related services, including loan facilitation.
Some lenders also integrate with the Jan Samarth portal (https://www.jansamarth.in) to allow online submission. Steps are similar: register → fill form → upload documents → submit & track.
While details vary by lender, typically you need:
KYC includes Aadhaar, PAN, Voter ID, Passport, or Driving Licence, address proof includes a utility bill or Aadhaar, business details or proof include registration or a business plan, and bank statements or financials include recent statements.
(The official MUDRA Ltd. document repository has templates and forms for reference.)
The following entities are eligible to apply for a PM Mudra Loan:
Individuals
Proprietary Concerns
Partnership Firms
Private Limited Companies
Public Companies
Any Other Legal Forms of Business
Important Note:
applicant should not be a defaulter with any bank or financial institution and must have a satisfactory credit track record, individual borrowers may be required to possess the necessary skills, experience, or knowledge to run the proposed business activity, and any requirement for educational qualification is assessed based on the nature and needs of the proposed business.
Over 52 crore loans worth ₹32.61 lakh crore sanctioned since its launch in April 2015, reflecting massive credit support to micro and small entrepreneurs across India.
More than 52 crore loans worth ₹33 lakh crore disbursed overall, averaging 1.6 loans issued every second, showing the scale and speed of credit delivery.
Approximately 69 % of PMMY loans have been sanctioned to women entrepreneurs and about 51 % to SC/ST/OBC categories, indicating strong emphasis on inclusive financial empowerment.
Over its decade of implementation, PMMY has expanded formal credit access to millions of small business owners, helping bring previously underserved units into the banking system.
Recent official data shows over 5.46 crore loans sanctioned in FY 2024–25 alone, illustrating continued momentum and expansion of the scheme.
Sources:
₹23.2 lakh crore sanctioned under Pradhan Mantri MUDRA Yojana
MUDRA NPA rate among world’s lowest for segment: PM
1800 180 1111
1800 11 0001
(These are general toll-free helpline numbers used for scheme enquiries, including Mudra)
help@mudra.org.in (for queries related to Mudra loans)
Swavalamban Bhawan, C-11, G-Block, BKC (E), Mumbai – 400051
Phone: 022 6722 1465 (for written communication or complaint follow-up)
Pradhan Mantri Mudra Yojana (PMMY) is a government scheme that provides collateral-free loans to micro and small entrepreneurs through banks, NBFCs, and MFIs to start or expand income-generating businesses.
Individuals, proprietorships, partnership firms, private/public companies, and other legal entities engaged in non-farm business activities are eligible, subject to credit and eligibility norms.
You can apply offline by visiting a bank or NBFC branch, or online through portals like UdyamiMitra or Jan Samarth, and by submitting the required documents.
Loans are offered under four categories: Shishu (up to ₹50,000), Kishore (₹50,001–₹5 lakh), Tarun (₹5–₹10 lakh), and Tarun Plus (₹10–₹20 lakh).
The maximum loan amount available under PMMY is up to ₹20 lakh, subject to lender assessment and eligibility.
Interest rates are decided by the lending institutions as per RBI guidelines and are generally kept reasonable for borrowers.
Approval timelines vary by lender, but most applications are processed within a few days to a few weeks after document verification.
You can check the status through the bank/NBFC where you applied, or via the online portal used for application.
Yes, women entrepreneurs are encouraged under PMMY and are major beneficiaries of the scheme, with special focus on financial inclusion.
Yes, you may apply for a PMMY loan even if you have an existing business loan, provided you meet the lender’s credit and repayment criteria.
