Pradhan Mantri MUDRA Yojana (PMMY)
Published on March 22, 2025
Overview
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Government of India to provide loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.
Categories of MUDRA Loans
- Shishu: Loans up to ₹50,000
- Kishore: Loans above ₹50,000 and up to ₹5 lakh
- Tarun: Loans above ₹5 lakh and up to ₹10 lakh
Eligibility Criteria
Any Indian citizen who has a business plan for a non-farm income generating activity such as manufacturing, processing, trading or service sector and whose credit need is less than ₹10 lakh can approach either a Bank, MFI, or NBFC for availing of MUDRA loans under PMMY.
Activities Covered
- Small manufacturing units
- Service sector units
- Shopkeepers
- Fruit and vegetable vendors
- Truck operators
- Food service units
- Repair shops
- Machine operators
- Small industries
- Artisans
- Food processors
- Others
Application Process
- Prepare a business plan/proposal
- Approach the nearest bank branch/MFI/NBFC
- Submit the application along with required documents
- After verification and approval, the loan is sanctioned
Required Documents
- Identity Proof (Aadhaar Card, Voter ID, PAN Card, etc.)
- Address Proof
- Business Plan/Proposal
- Proof of SC/ST/OBC if applicable
- Passport size photograph
- Quotation of machinery to be purchased
Success Stories
The MUDRA scheme has helped millions of small entrepreneurs realize their dreams. For example, Mrs. Lakshmi from Tamil Nadu started a small tailoring business with a Shishu loan of ₹50,000. Today, she employs 5 women from her neighborhood and has upgraded to a Kishore loan to expand her business.