Pradhan Mantri Mudra Yojana (PMMY) is a flagship initiative of the Government of India that provides micro-credit to non-corporate, non-farm small businesses. Loans up to ₹20 lakh are available to income-generating enterprises in manufacturing, trading, services and allied agricultural activities (e.g., poultry, dairy, beekeeping).
Member Lending Institutions (MLIs) — such as public and private sector banks, regional rural banks, cooperative banks, NBFCs, MFIs and small finance banks — disburse Mudra loans.
Loan Categories
PMMY classifies loans into four categories based on the stage and funding needs of the enterprise:
- Shishu — Loans up to ₹50,000.
- Kishore — Loans above ₹50,000 and up to ₹5,00,000.
- Tarun — Loans above ₹5,00,000 and up to ₹10,00,000.
- Tarun Plus — Loans up to ₹20,00,000 for entrepreneurs who have successfully repaid earlier Tarun loans.
Who Can Apply (Eligibility)
Eligible applicants include:
- Individuals (including self-employed professionals)
- Proprietorship concerns
- Partnership firms
- Private limited companies and public companies
- Other legal business forms
Important notes:
- Applicants should not be defaulters to any bank or financial institution and should have a satisfactory credit record.
- Applicants may need to demonstrate the relevant skills or experience for the proposed activity.
- Any educational qualifications required depend on the nature of the proposed business.
Interest Rates & Fees
- Interest rates are set by the lending institution in accordance with RBI guidelines and may vary between MLIs.
- Processing fees / upfront charges depend on the bank’s internal policy. Many banks waive processing fees for Shishu loans (≤ ₹50,000).
- Note: Mudra / MUDRA does not engage agents or middlemen. Borrowers should avoid third-party agents who claim to facilitate Mudra loans.
Key Benefits
- Access to formal credit for micro and small enterprises.
- Wide coverage of activities (manufacturing, trading, services, allied agri).
- Segmented loan categories to match enterprise growth stages.
- Loans available through a large network of MLIs across India.
Documents Required
Common documents (general):
- Proof of identity: Aadhaar, PAN, Voter ID, Driving License, Passport, etc. (self-attested)
- Proof of residence: Utility bill, bank passbook, voter ID, Aadhar, etc. (not older than 2 months where specified)
- Recent passport-size photographs (typically 2)
- Proof of business identity/address (licenses, registration, GST, trade license) where applicable
For Shishu (≤ ₹50,000):
- ID proof, address proof, photos, quotation(s) for machinery/items to be purchased, supplier details, business proof (if any).
For Kishore / Tarun / Tarun Plus (above ₹50,000):
- ID & address proof, photographs.
- Bank statement for last 6 months (if applicable).
- Last 2 years’ balance sheets, tax returns (applicable for loans ≥ ₹2 lakh).
- Project report, projected balance sheets (for term loans or working capital).
- Sales figures for current financial year (if available).
- Memorandum & Articles (for companies) / Partnership deed (for firms).
- Asset & liability statement (if third-party guarantee is absent).
Application Process (Online)
You can apply for a Mudra loan through eligible Member Lending Institutions or via designated portals. Typical online steps:
- Visit the official PMMY / Mudra portal or the Udyam / Jan Samarth portal as directed by your chosen MLI.
- Select Apply Now — Mudra Loan and choose the applicant type: New Entrepreneur / Existing Entrepreneur / Self-employed Professional.
- Register by filling in name, email and mobile number — verify via OTP.
- Complete the form with personal and business details: business name, activity, industry type (manufacturing/service/trading/allied agriculture), ownership details, banking/credit history, proposed loan amount and preferred lender.
- Select any hand-holding agencies if you need help preparing a project report. Otherwise choose the loan application center or the lender.
- Upload required documents (ID, address proof, photos, business proofs, quotations, financial statements as applicable).
- Submit the application. You will receive an Application Number — keep it for future reference.
Apply via: Jan Samarth / Udyam / designated MLI portal (follow MLI instructions).
Tips for a Smooth Application
- Verify your credit history and clear any outstanding defaults before applying.
- Prepare a concise project report and realistic financial projections for loans above ₹2 lakh.
- Keep digital copies of all documents ready (scanned, legible).
- Approach your bank branch or MLI directly if you need assistance — avoid intermediaries.
Important Note
Mudra does not appoint agents or middlemen for loan facilitation. Beware of persons posing as Mudra agents; always deal directly with authorized MLIs or official portals.
Where to Get Help / Apply
- Apply online via the official Mudra / Jan Samarth / Udyam portals or through Member Lending Institutions (public/private banks, RRBs, cooperative banks, NBFCs, MFIs, Small Finance Banks).
- For more details and latest schemes or contact points, refer to the official PMMY / Mudra website or consult the nearest bank branch.