Pradhan Mantri Mudra Yojana

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. 10 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. 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.

What You Get

As set out by Ministry Of Finance.

• The scheme has been classified under three categories as 'SHISHU', 'KISHORE' and 'TARUN' 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.

Am I Eligible?

You may be eligible if all of these are true for you.

• 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.

Final eligibility is decided by the government department handling this scheme.

Required Documents

The official source does not publish a document checklist for this scheme. Check the scheme guidelines below, or ask at the office where you apply, before you set off.

How to Apply

1. 1 Go to PM MUDRA official website and after that select the Udyamimitra portal
2. 2 Click on Mudra loan "Apply Now"
3. 3 Select one of the following: New entrepreneur/ Existing Entrepreneur/Self-employed professional
4. 4 Then fill in the name of the applicant, email and Mobile number and Generate OTP
5. 5 Fill in Personal Details and Professional Details.
6. 6 Select hand-holding agencies if any help is required for preparing project proposals etc., otherwise click "Loan Application Center" and apply.
7. 7 Select the category of loan required - Mudra Shishu / Mudra Kishore/ Mudra Tarun.
8. 8 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.
9. 9 Fill in other information like owner details, existing Banking/ Credit facilities, proposed credit facilities, future estimates and preferred lender.
10. 10 Attach all required Documents i.e. ID proof, Address proof, Applicant photo, Applicant Signature, Proof of Identity/ Address of Business Enterprise, etc.
11. 11 Once the application is submitted, an Application Number gets generated which needs to be kept for future reference.

Official Documents and Links

Published by the department that runs this scheme.

• Scheme Brochure
• Scheme FAQs