Central Government · Ministry Of Finance
Pradhan Mantri Mudra Yojana
Rules checked by our team
Main benefit
Collateral-free loans for small businesses
Can you get this scheme?
Conditions at a glance
- Work: Business / self-employed, Artisan / weaver, Street vendor
About
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.
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 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.
Who can apply
- Eligible borrowers
- IndividualsProprietary 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.
Documents needed
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How to 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
- 1
Go to PM MUDRA official website and after that select the Udyamimitra portal
- 2
Click on Mudra loan "Apply Now"
- 3
Select one of the following : New entrepreneur/ Existing Entrepreneur/Self-employed professional
- 4
Then fill in the name of the applicant, email and Mobile number and Generate OTPAfter Successful Registration
- 5
Fill in Personal Details and Professional Details.
- 6
Select hand-holding agencies if any help is required for preparing project proposals etc., otherwise click "Loan Application Center" and apply.
- 7
Select the category of loan required - Mudra Shishu / Mudra Kishore/ Mudra Tarun.
- 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
Fill in other information like owner details, existing Banking/ Credit facilities, proposed credit facilities, future estimates and preferred lender.
- 10
Attach all required Documents i.e. ID proof, Address proof, Applicant photo, Applicant Signature, Proof of Identity/ Address of Business Enterprise, etc.
- 11
Once the application is submitted, an Application Number gets generated which needs to be kept for future reference.
Common questions
Is Khadi Activity Eligible Under PMMY Loans?
Yes. MUDRA loans are applicable for any activity which results in income generation. As Khadi is one of the eligible activities under Textile sector and in case MUDRA loans are taken for income generation, the same can be covered.
Are MUDRA Loans Available For Purchase Of CNG Tempo/Taxi?
MUDRA loans would be available for purchase of CNG Tempo/Taxi, in case the applicant intends to use the vehicle for commercial purposes.
I Have A Savings Bank Account With the Bank, Would Loan Under MUDRA Be Available Based On The SB Account?
Yes. The applicant can approach the branch and apply for the loan in the format being provided by the said lending institution. The terms and conditions of the loan will be governed by the policies of the lending institution, based on the broad guidelines of RBI. The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.
Under PMMY-Shishu Loans, What Is The Turn Around Time For Processing The Loan Proposal?
As per Banking Codes and Standard Board of India (BCSBI), set up by RBI, loan applications should be disposed off for credit limit up to Rs.5 lakh within 2 weeks. Is It Required To Submit Income Tax Returns For The Preceding 2 Years For Availing Loan Of Rs. 10
Lakh Under PMMY?
Generally, IT returns are not insisted for small value loans. However, the requirement of documents will be advised by the concerned lending institutions based on their internal guidelines and policies.
Similar schemes
- Central GovernmentNational Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme
- Central GovernmentPradhan Mantri Credit Scheme for Powerloom Weavers
- Central GovernmentPradhan Mantri Formalisation Of Micro Food Processing Enterprises
- Central GovernmentPradhan Mantri Awaas Yojana - Gramin