Pradhan Mantri Mudra Yojana (PMMY)

About Pradhan Mantri Mudra Yojana (PMMY)

PMMY (प्रधानमंत्री मुद्रा योजना) is a flagship scheme launched by the Government of India in April 2015 to provide financial support to micro-enterprises in the non-farm sector. The scheme aims to "fund the unfunded" by providing loans to small entrepreneurs and businesses.

Objective

The primary objective of PMMY is to:

Promote entrepreneurship among new and existing micro-enterprises
Provide financial assistance to small businesses and startups
Support income-generating activities in the manufacturing, trading, and services sectors
Generate employment opportunities across the country
Empower small business owners, especially in rural and semi-urban areas

Key Benefits

No Collateral Required

Loans are provided without any security or third-party guarantee, making it accessible to all entrepreneurs.

Quick Processing

Fast loan approval and disbursement within 7-14 days from the date of application submission.

Low Interest Rates

Competitive interest rates starting from 8% per annum, making loans affordable for small businesses.

Wide Network

Available through all scheduled commercial banks, Regional Rural Banks, and NBFCs across India.

Interest Rates

Interest rates for Mudra loans vary depending on the lending institution and loan category:

Shishu: Typically 8-12% per annum
Kishore: Typically 10-13% per annum
Tarun: Typically 12-15% per annum

Note: Interest rates may vary from bank to bank. Please check with your lending institution for current rates.

Mudra Loan Categories

PMMY offers loans under three categories based on the stage of growth and funding needs of the business

Shishu (शिशु)

Up to ₹50,000

For Startups & New Businesses

Perfect for entrepreneurs starting their journey. Ideal for small-scale businesses, vendors, and first-time business owners who need initial capital to begin operations.

Eligibility:

Indian citizen above 18 years of age
New or existing micro-enterprise
No minimum turnover requirement
Engaged in manufacturing, trading, or services

Documents Required:

Aadhar Card (Identity Proof)
PAN Card
Bank Statement (last 6 months)
Business Proof (if existing business)
2 Passport size photographs
Address Proof (Aadhar/Voter ID/Utility Bill)

Purpose:

Starting a new business
Working capital requirements
Equipment and machinery purchase
Business expansion
Inventory management

Interest Rate:

8-12% per annum (varies by bank)

Calculate EMI

Kishore (किशोर)

₹50,001 to ₹5 Lakh

For Growing Businesses

Designed for businesses that have been operating for some time and need funds to scale up operations, increase their market presence, and expand their customer base.

Eligibility:

Existing business with 1+ years of operations
Annual turnover up to ₹5 lakh
Good repayment track record
Business should be profitable or break-even
No defaults in previous loans (if any)

Documents Required:

Aadhar Card & PAN Card
Business Registration Certificate
IT Returns (if applicable)
Bank Statement (last 12 months)
Business Plan/Project Report
GST Certificate (if registered)
2 Passport size photographs

Purpose:

Business expansion and growth
Technology upgrade and modernization
Marketing and promotion activities
Inventory management and stocking
Infrastructure development

Interest Rate:

10-13% per annum (varies by bank)

Calculate EMI

Tarun (तरुण)

₹5 Lakh to ₹10 Lakh

For Established Businesses

For well-established businesses ready for significant growth. Best suited for enterprises with proven track records seeking substantial funding for large-scale expansion.

Eligibility:

Established business (minimum 3+ years)
Annual turnover ₹5-25 lakh
Strong financials and credit history
Profitable operations for last 2-3 years
Good banking relationship

Documents Required:

All identity & address proofs
Company/Business Registration Certificate
IT Returns (last 2-3 years)
Audited Financial Statements
Detailed Project Report (DPR)
GST Certificate and Returns
Bank Statement (last 2 years)
Business License (if applicable)

Purpose:

Large-scale business expansion
Infrastructure development
Technology and automation
Market diversification
Setting up new branches/units

Interest Rate:

12-15% per annum (varies by bank)

Calculate EMI

About Pradhan Mantri Mudra Yojana (PMMY)

Objective

Key Benefits

No Collateral Required

Quick Processing

Low Interest Rates

Wide Network

Interest Rates

Mudra Loan Categories

Shishu (शिशु)

For Startups & New Businesses

Eligibility:

Documents Required:

Purpose:

Interest Rate:

Kishore (किशोर)

For Growing Businesses

Eligibility:

Documents Required:

Purpose:

Interest Rate:

Tarun (तरुण)

For Established Businesses

Eligibility:

Documents Required:

Purpose:

Interest Rate:

EMI Calculator for Mudra Loans

Loan Breakdown