Pradhan Mantri Mudra Yojana (PMMY)
What is Mudra Yojana?
Pradhan Mantri Mudra Yojana (PMMY) is a Government of India scheme launched to provide collateral-free loans to micro and small businesses for starting, expanding, or upgrading their business activities.
Loans are provided through banks, NBFCs, and MFIs, not directly by the government.
Objectives of Mudra Yojana
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✅ Promote self-employment
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✅ Support micro & small entrepreneurs
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✅ Encourage startups and small traders
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✅ Generate employment opportunities
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✅ Provide easy access to business finance
Types of Mudra Loans
Mudra loans are categorized into three types:
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Shishu – Loans up to ₹50,000
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Kishor – Loans from ₹50,001 to ₹5,00,000
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Tarun – Loans from ₹5,00,001 to ₹10,00,000
Who Can Apply?
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Proprietorship Firms
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Partnership Firms
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OPC / Private Limited Companies
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Small traders & shop owners
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Manufacturing & service units
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Startups and self-employed individuals
📌 Applicant must be engaged in non-farm income generating activities.
Benefits of Mudra Yojana
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No collateral required
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Low interest rates (as per bank norms)
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Simple documentation
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Flexible repayment tenure
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Easy access to working capital
Documents Required
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PAN Card & Aadhaar Card
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Business proof (GST / Shop Act / Udyam)
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Bank statements
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Project report / business plan
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Address proof
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Passport-size photograph
Application Process
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Prepare business plan / project report
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Apply through bank or Mudra loan portal
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Document verification & appraisal
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Loan sanction and disbursement
⏱️ Timeline: 7–30 working days (depends on bank)
Repayment Period
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Generally 3 to 5 years
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Moratorium period may be provided by bank
Important Note
📌 Mudra Yojana does not provide subsidy. It offers collateral-free loans only.
