The Pradhan Mantri MUDRA Yojana (PMMY) is a flagship scheme launched by the Government of India in 2015 to support small and micro enterprises with easy access to loans. It aims to boost self-employment, entrepreneurship, and financial inclusion by providing collateral-free loans up to ₹10 lakh to non-corporate, non-farm small businesses.
Key Objectives of PM Mudra Yojana
- Encourage self-employment among youth, women, and micro-entrepreneurs.
- Provide financial support to businesses that are usually excluded from formal banking.
- Reduce dependence on informal moneylenders.
Loan Categories Under PMMY
PMMY offers three types of loans based on the stage of business:
1. Shishu (Up to ₹50,000)
- For startups and new businesses in early stages.
2. Kishor (₹50,001 – ₹5,00,000)
- For growing businesses needing additional funds.
3. Tarun (₹5,00,001 – ₹10,00,000)
- For established businesses seeking expansion.
Who Can Apply?
- Small business owners in manufacturing, trading, or service sectors.
- Vendors, artisans, shopkeepers, MSMEs, and self-employed individuals.
- Applicants don’t need any collateral or security deposit.
Documents Required
- Aadhaar Card & PAN Card
- Proof of Business (registration, license if any)
- Address and identity proof
- Bank statements (last 6 months)
- Business plan or proposal (especially for Kishor & Tarun loans)
How to Apply?
You can apply through:
- Any scheduled commercial bank, NBFC, cooperative bank, or regional rural bank (RRB).
- Visit the nearest bank branch or apply online via:
www.udyamimitra.in
Official websites of banks like SBI, Canara, Bank of Baroda, etc.
Step-by-step:
- Choose the appropriate loan category (Shishu/Kishor/Tarun).
- Prepare a business plan and required documents.
- Submit the application to the chosen bank or online portal.
- Wait for verification and loan sanction.
Benefits of PM Mudra Yojana
- No collateral or guarantor required.
- Low processing fees and minimal paperwork.
- Competitive interest rates starting from 8-12% depending on the bank.
- Encourages women entrepreneurs with additional support.
- Repayment tenure is flexible – up to 5 years.
Conclusion: Empowering Dreams
The PM Mudra Yojana is a powerful initiative for those who dream of becoming self-reliant and creating jobs. If you’re planning to start or expand your business, this scheme can be your first step toward financial independence and success.
