The Pradhan Mantri Mudra Yojana (PMMY) is a flagship government scheme designed to provide collateral-free business loans to small entrepreneurs, shopkeepers, street vendors, and MSMEs across India.
- 1. What is PM Mudra Loan Yojana?
- 2. Types of Mudra Loans
- 3. Eligibility Criteria for PM Mudra Loan
- 3.1 Eligible Businesses Include:
- 4. Documents Required
- 5. PM Mudra Loan Interest Rate
- 6. How to Apply for PM Mudra Loan Online (Step-by-Step)
- 7. Benefits of PM Mudra Loan Yojana
- 8. Frequently Asked Questions (FAQs)
- 8.1 Is CIBIL score required for Mudra loan?
- 8.2 Can I apply without business registration?
- 8.3 Can women apply for Mudra loan?
Under this scheme, eligible individuals can get loans up to ₹10 lakh to start or expand their business without providing any security.
What is PM Mudra Loan Yojana?
PM Mudra Loan Yojana was launched to support non-corporate, non-farm small businesses by providing easy access to institutional finance.
Loans are provided through:
- Public & private sector banks
- Regional Rural Banks (RRBs)
- NBFCs
- Micro Finance Institutions (MFIs)
Types of Mudra Loans
Mudra loans are classified into three categories based on funding needs:
| Loan Type | Loan Amount |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishore | ₹50,001 – ₹5,00,000 |
| Tarun | ₹5,00,001 – ₹10,00,000 |
👉 As your business grows, you can move from Shishu → Kishore → Tarun.
Eligibility Criteria for PM Mudra Loan
You can apply if you are:
- An Indian citizen
- Running or planning a small business / MSME
- Involved in manufacturing, trading, or service activities
Eligible Businesses Include:
- Kirana stores
- Street vendors
- Tailors & artisans
- Small manufacturing units
- Service providers (salons, repair shops, etc.)
❌ Not applicable for agricultural activities like farming.
Documents Required
To apply for a Mudra loan, you generally need:
- Aadhaar Card
- PAN Card
- Business proof (shop license / GST / Udyam Registration)
- Bank statements (last 6 months)
- Passport size photographs
Banks may ask for additional documents based on loan amount.
PM Mudra Loan Interest Rate
There is no fixed interest rate under PMMY. Rates vary by bank and loan type.
- Average Interest Rate: 8% – 12% per annum
- Processing Fees: Usually NIL or minimal
- Collateral: ❌ Not required
Government does not charge directly; banks decide rates.
How to Apply for PM Mudra Loan Online (Step-by-Step)
- Visit the official Mudra portal or bank website
- Choose your loan category (Shishu/Kishore/Tarun)
- Download and fill the application form
- Submit the form online or at nearest bank branch
- Bank verifies documents and business details
- Loan amount credited after approval
⏳ Approval time: 7–15 working days (varies by bank)
Benefits of PM Mudra Loan Yojana
- No collateral required
- Easy repayment tenure
- Government-backed scheme
- Encourages self-employment
- Improves access to formal credit
Frequently Asked Questions (FAQs)
Is CIBIL score required for Mudra loan?
A high CIBIL score helps, but small loans under Shishu category can be approved with low or no credit history.
Can I apply without business registration?
For small loans, basic proof may work, but Udyam Registration increases approval chances.
Can women apply for Mudra loan?
Yes. Women entrepreneurs often get priority and lower interest rates.
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