Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana (PMMY) is a flagship government initiative aimed at providing financial support to micro and small enterprises in India. By offering collateral-free loans, the scheme empowers entrepreneurs and enables the growth of the Indian economy. In this comprehensive guide, we’ll delve into the details of PMMY, its benefits, eligibility criteria, and how you can avail of the scheme. At, our mission is to provide you with the best financial advice, insights, and news to help you make informed decisions for your business.

What is Pradhan Mantri Mudra Yojana (PMMY)?

Launched in 2015, the Pradhan Mantri Mudra Yojana (PMMY) is a government scheme that provides collateral-free loans to micro, small, and medium enterprises (MSMEs) in the non-farm sector. The scheme aims to address the financial challenges faced by small businesses and promote entrepreneurship across the country.

Loan Categories Under PMMY

PMMY offers three categories of loans based on the growth stage and funding requirements of the businesses:

A. Shishu: Designed for startups and businesses in their nascent stage, Shishu loans offer up to ₹50,000.

B. Kishore: Aimed at businesses looking to expand, Kishore loans provide funding between ₹50,001 and ₹5,00,000.

C. Tarun: For established businesses seeking further growth, Tarun loans offer financial assistance ranging from ₹5,00,001 to ₹10,00,000.

Eligibility Criteria for PMMY Loans

The PMMY scheme is open to a wide range of business owners, including:

Mudra loan is extended for a variety of purposes which result in income generation and employment creation. The loans are extended mainly for:

Following is an illustrative list of the activities that can be covered under MUDRA loans:

1) Transport Vehicle

Purchase of transport vehicles for transportation of goods and passengers such as auto rickshaws, small goods transport vehicles, 3 wheelers, e-rickshaws, taxis, etc. Tractors/Tractor Trolleys/Power Tillers used only for commercial purposes are also eligible for assistance under PMMY. Two Wheelers used for commercial purposes are also eligible for coverage under PMMY.

2) Community, Social & Personal Service Activities

Salons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shops, DTP and Photocopying Facilities, Medicine Shops, Courier Agents, etc.

3) Food Products Sector

Activities such as papad making, achaar making, jam/jelly making, agricultural produce preservation at rural level, sweet shops, small service food stalls and day to day catering / canteen services, cold chain vehicles, cold storages, ice making units, ice cream making units, biscuit, bread and bun making, etc.

4) Textile Products Sector / Activity

Handloom, powerloom, khadi activity, chikan work, zari and zardozi work, traditional embroidery and hand work, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other textile non garment products such as bags, vehicle accessories, furnishing accessories, etc.

5) Business loans for Traders and Shopkeepers

Financial support for on lending to individuals for running their shops / trading & business activities / service enterprises and non-farm income generating activities with beneficiary loan size of up to  10 lakh per enterprise / borrower.

6) Equipment Finance Scheme for Micro Units

Setting up micro enterprises by purchasing necessary machinery / equipments with per beneficiary loan size of upto  10 lakh.

7) Activities allied to agriculture

‘Activities allied to agriculture’, e.g. pisciculture, bee keeping, poultry, livestock-rearing, grading, sorting, aggregation agro industries, diary, fishery, agri-clinics and agribusiness centres, food & agro-processing, etc.(excluding crop loans, land improvement such as canal, irrigation and wells) and services supporting these, which promote livelihood or are income generating shall be eligible for coverage under PMMY in 2016-17.

How to Apply for a PMMY Loan

To apply for a PMMY loan, follow these simple steps:

A. Identify a suitable lender: PMMY loans are offered by various financial institutions, including public and private sector banks, regional rural banks (RRBs), small finance banks, and non-banking financial companies (NBFCs).

B. Gather required documentation: Prepare necessary documents such as your business plan, proof of identity, proof of address, and financial statements.

C. Fill out the application form: Complete the Mudra loan application form available at the lender’s branch or website.

D. Submit the application and documents: Submit your application form along with the required documents to your chosen lender. Can help you with Detailed Project Report with CMA Start chat to know more WHATSAPP

Benefits of Pradhan Mantri Mudra Yojana (PMMY)

Some key benefits of the PMMY scheme include:

A. Collateral-free loans

B. Competitive interest rates

C. Wide coverage of businesses

D. Easy application process

E. Promotion of entrepreneurship and self-employment

Pradhan Mantri Mudra Yojana (PMMY) is a powerful tool for small business owners and aspiring entrepreneurs in India. With collateral-free loans and competitive interest rates, the scheme has the potential to boost economic growth and create new opportunities across the nation. Stay informed and updated with the latest financial news, tips, and insights at, your one-stop destination for all your financial needs.

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