Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India aimed at providing financial support to micro and small enterprises engaged in manufacturing, trading, and service activities, including allied agricultural activities such as dairy, poultry, beekeeping, and fisheries.

Under this scheme, loans up to ₹20 Lakhs are provided to non-corporate, non-farm income-generating businesses through banks, NBFCs, MFIs, and other approved financial institutions, enabling entrepreneurs to grow and sustain their businesses.

Features

Government of India backed loan scheme for micro and small enterprises.
Loan amount available up to ₹20 Lakhs.
No collateral required for most loan categories.
Loans available for manufacturing, trading, and service sectors.
Flexible repayment tenure as per lender guidelines.
Quick processing through banks, NBFCs, MFIs, and Small Finance Banks.

Note: There are no agents or middlemen appointed by MUDRA. Applicants are advised to avoid individuals claiming to facilitate PMMY loans for a fee.

Eligibility

Customer Profile

Individuals, Proprietorships, Partnership Firms, Private Limited Companies, Public Companies, and other legal business entities.

Employment Stability

Business should be operational or proposed income-generating activity

Residential Stability

Minimum 1 Year

Age

18 years and above

Monthly Income

Based on business viability and cash flow

Documentation

Photograph

Recent passport-size colour photographs (2 copies)

Identity Proof (Any One)

Aadhaar Card / PAN Card / Voter ID / Passport / Driving License

Address Proof (Any One)

Electricity Bill / Telephone Bill / Property Tax Receipt / Aadhaar Card / Passport

Business Proof

Shop & Establishment Certificate / Trade License / Registration Certificate

Income & Financial Documents

Bank Statement for last 6 months
Balance Sheet & ITR (Applicable for loans above ₹2 Lakhs)

Project Details

Quotation of machinery/equipment and project report (if applicable)

Common Question for this loan

Yes. MUDRA loans are applicable for any activity which results in income generation. As Khadi is one of the eligible activities under Textile sector and in case MUDRA loans are taken for income generation, the same can be covered.

MUDRA loans would be available for purchase of CNG Tempo/Taxi, in case the applicant intends to use the vehicle for commercial purposes.

Yes. The applicant can approach the branch and apply for the loan in the format being provided by the said lending institution. The terms and conditions of the loan will be governed by the policies of the lending institution, based on the broad guidelines of RBI. The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.

As per Banking Codes and Standard Board of India (BCSBI), set up by RBI, loan applications should be disposed off for credit limit up to Rs.5 lakh within 2 weeks.

Generally, IT returns are not insisted for small value loans. However, the requirement of documents will be advised by the concerned lending institutions based on their internal guidelines and policies.