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Pradhan Mantri Mudra Yojana (PMMY)

Ministry of Finance

Collateral-free loans to non-corporate, non-farm micro and small enterprises to help grow their businesses under three tiers: Shishu, Kishore, and Tarun.

Benefit

Loans up to ₹10 lakh

For

Micro & Small Enterprises

Coverage

All India

Since

2015

Last Verified

Jan 2025

Eligibility

Who Can Apply

  • Any Indian citizen with a business plan
  • Existing small businesses seeking expansion
  • Street vendors, artisans, shopkeepers
  • Agri-allied activities (not crop farming)
  • Women entrepreneurs (priority category)
  • SC/ST entrepreneurs (special sub-schemes available)

Who Cannot Apply

  • Agricultural crop production businesses
  • Corporate entities
  • Applicants with existing loan defaults
  • Non-business individual borrowers

Benefits

  • Shishu: Loans up to ₹50,000
  • Kishore: Loans ₹50,001 to ₹5 lakh
  • Tarun: Loans ₹5 lakh to ₹10 lakh
  • No collateral required
  • Competitive interest rates

Documents Required

  • Aadhaar Card & PAN Card
  • Business proof (GST, shop registration, etc.)
  • Bank statements (last 6 months)
  • Income Tax Returns (if available)
  • Quotations for machinery/equipment (if applicable)
  • 2 passport size photographs

How to Apply

Online

  1. Visit mudra.org.in and select loan category
  2. Apply through bank's official website or Udyamimitra portal
  3. Fill business plan and financial details
  4. Submit. The bank will process it within 7 to 30 days

Offline / CSC

  1. Visit any public sector bank, private bank, RRB, MFI or NBFC
  2. Ask for PM Mudra Yojana application form
  3. Submit business plan with required documents
  4. Bank will assess and sanction within 7-30 working days

Frequently Asked Questions

The interest rate is competitive and determined by the lending institution. There is no direct subsidy, but rates are lower than informal lenders.