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ActiveCentral Sector SchemeLaunched 2015-04-08Verified: 2026-09-16

Pradhan Mantri Mudra Yojana (PMMY)

Institutional micro-finance scheme providing collateral-free business loans up to ₹20 lakh across Shishu, Kishore, and Tarun categories.

Government Levelcentral Government
Administering BodyMinistry of Finance
Beneficiary Sector
Banking & Financial ServicesBusiness & Entrepreneurship
Applicable Jurisdiction
All India

₹Benefits & Entitlement Breakdown

Collateral-free business loans granted by commercial banks, RRBs, Small Finance Banks, and MFIs. Three tiers: Shishu (loans up to ₹50,000 for startups), Kishore (loans above ₹50,000 and up to ₹5,00,000 for equipment/working capital), and Tarun (loans above ₹5,00,000 and up to ₹10,00,000, extended up to ₹20,00,000 under Tarun Plus for repeat borrowers). Zero processing fees for Shishu loans. Repayment tenure up to 5 to 7 years. Borrowers receive a MUDRA RuPay Card for cash withdrawals and digital payments.

📊Budget Allocation & Beneficiary Reach

Fiscal Budget Allocation

Credit guarantee backed by National Credit Guarantee Trustee Company (NCGTC)

Official Budget Document ↗
Verified Beneficiary Reach

48+ Crore loan accounts sanctioned amounting to over ₹29 lakh crore

As of: 2024-03-31PIB / Official Citation ↗

Verified Eligibility Criteria

Age Requirement:18 to 65 years
Annual Family Income Ceiling:No gross income ceiling specified
Target Occupations:entrepreneur, trader, artisan, small_business_owner, service_provider
Eligible Gender:all
Social Category / Reservation:all
Specific Operational Conditions & Exclusions:

Any Indian citizen with a viable business plan for non-farm income generating activities in manufacturing, trading, or service sectors. Must not be a defaulter to any bank or financial institution.

Required Documents Checklist

  • ✓
    Identity Proof (Aadhaar Card, Voter ID, PAN Card)Mandatory

    Mandatory applicant KYC.

  • ✓
    Address Proof (Utility bill, Aadhaar, Bank Statement)Mandatory

    Proof of business/residence location.

  • ✓
    Udyam Registration CertificateMandatory

    Proof of MSME enterprise registration.

  • ✓
    Bank Account Statements for last 6 monthsMandatory

    For assessing financial track record (Kishore & Tarun).

  • ✓
    Project Report / Machinery QuotationMandatory

    Detailed cost estimates for equipment/expansion (Kishore & Tarun).

How to Apply

1. Prepare business proposal and determine loan requirement tier (Shishu, Kishore, or Tarun). 2. Visit the national Udyamimithra portal (https://udyamimitra.in) or approach any commercial bank, regional rural bank, or microfinance institution. 3. Register online and fill the standardized PMMY loan application form. 4. Upload KYC, Udyam registration, business plan, and vendor quotations for machinery/equipment. 5. Select preferred lending banks and submit. 6. The lending bank appraises the proposal, conducts due diligence, sanctions the loan, and issues a MUDRA RuPay Card for working capital draws.

Official Government Application Portal

You will be redirected to the secure official portal: udyamimitra.in

Apply on official government website

Frequently Asked Questions (Officially Sourced)

Verified answers sourced directly from official circulars, gazettes, and portal FAQs. Never AI-invented.

Is collateral security required for a MUDRA loan?

No. As per RBI guidelines, no collateral security or third-party guarantee is required for loans sanctioned up to ₹10 lakh (and ₹20 lakh for Tarun Plus) under PMMY.

Source: Official Scheme FAQ ↗

What is a MUDRA Card?

A MUDRA Card is a RuPay debit card issued against the sanctioned working capital limit, allowing borrowers to withdraw funds from ATMs and make point-of-sale business purchases as needed.

Source: Official Scheme FAQ ↗

Can loans be taken for agriculture activities under MUDRA?

Direct crop cultivation loans are not eligible, but activities allied to agriculture like dairy, poultry, beekeeping, agri-clinics, and food processing are eligible.

Source: Official Scheme FAQ ↗

Common Rejection Reasons & Warnings

Past default or NPA status with any lending institution; proposal outside non-farm enterprise category; non-viable business plan or inflated projections.

Editorial Verification & Change Log

DateFieldDescription / UpdateSource Citation
2026-09-16initial_verificationBaseline verification of PMMY tiers, Tarun Plus enhancement up to ₹20 lakh, and NCGTC guarantee.Official Source ↗

Application Window & Deadlines

Open throughout the year (Continuous lending)

Related Welfare Programs

Pradhan Mantri Jan Dhan Yojana (PMJDY)

National financial inclusion mission ensuring universal access to banking facilities with zero-balance savings accounts, RuPay debit cards, and credit facilities.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Affordable government-backed one-year renewable life insurance scheme offering ₹2 lakh life risk cover on death due to any cause.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Highly subsidized accidental death and disability insurance offering ₹2 lakh cover for just ₹20 per year.

Official Helpline & Nodal Offices

Micro Units Development & Refinance Agency (MUDRA)

Swavalamban Bhavan, C-11, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051

Helpline: 1800-180-1111 / 022-67221465 (MUDRA National Helpdesk)

Jurisdiction: National (All-India)

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Verification Metadata

Last verified by Eligo researchers on 2026-09-16 against official government documentation.

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