What is the Pradhan Mantri Mudra Yojana (PMMY)?

PMMY is a government scheme launched to provide collateral-free loans up to ₹10 lakh to small business owners and entrepreneurs in non-farming sectors.

Who is eligible to apply for a PMMY loan?

Eligible applicants include small entrepreneurs with no concerning credit history, who possess the necessary business knowledge. The business must belong to the non-farm sector, and applicants can be individuals, proprietors, partnership firms, private limited companies, or other legal entities.

What are the benefits of the PMMY scheme?

Benefits include collateral-free loans at low-interest rates, waiver of processing fees for loans up to ₹50,000, flexible payment options, direct communication with no middlemen, and easy online application.

How can I apply for a PMMY loan?

You can apply through the UMANG app (available on Android and iOS) or via the MUDRA portal on the PM MUDRA website. Follow the steps to fill in your details, select the appropriate loan category, and submit your application.

What is the maximum loan amount available under the PMMY scheme?

The maximum loan amount available under PMMY is ₹10 lakh.

How can I apply for a PMMY loan?

You can apply through the UMANG app (available on Android and iOS) or via the MUDRA portal on the PM MUDRA website. Follow the steps to fill in your details, select the appropriate loan category, and submit your application.

What is the maximum loan amount available under the PMMY scheme?

The maximum loan amount available under PMMY is ₹10 lakh.

How can I apply for a PMMY loan?

You can apply through the UMANG app (available on Android and iOS) or via the MUDRA portal on the PM MUDRA website. Follow the steps to fill in your details, select the appropriate loan category, and submit your application.

What is the maximum loan amount available under the PMMY scheme?

The maximum loan amount available under PMMY is ₹10 lakh.

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What is the Pradhan Mantri Mudra Yojana Scheme (PMMY)?

Neha Gupta

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Updated: 07-07-2025 at 5:31 PM

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The Pradhan Mantri Mudra Yojana, or PMMY for short, is a government scheme for businesses launched by the Government of India to help business owners and entrepreneurs avail of collateral-free loans up to Rs. 10 lakh in value. Let us read more about the principles of this govt scheme.

What Is The Pradhan Mantri Mudra Yojana?

The Pradhan Mantri Mudra Yojana was launched on the 8th of April, 2015 by the honourable Prime Minister of India to help boost the abilities of small businesses and sectors belonging to non-farming.

The PMMY provides concessions in the form of collateral-free loans of up to Rs. 10 lakh to marginal borrowers and also new business owners under three categories, which are differentiated as Shishu, Kishore and Tarun. This helps them meet their working capital requirements and also obtain machinery without pledging any security against the loan, working in their favour.

Eligibility Criteria For The PMMY

To be eligible to apply under the PMMY scheme, borrowers have to be:

A small entrepreneur without any concerning credit history.
Must have little to required knowledge for the business they are looking to avail the benefits of PMMY for.
Any individual, proprietor, partnership firm, private limited company or other legal forms befitting the PMMY scheme.
The business that the applicant is pursuing must belong to the non-farm sector.

Loan Categories Of The PMMY

As mentioned, the PMMY government loans scheme is distributed and categorised under three categories, which are calculated by the loan amount. These are:

Shishu: The Shishu category covers loans up to that of Rs. 50,000. This can be availed by businesses which do not require much capital for their start-up.
Kishore: The Kishore category covers loans above Rs. 50,000 and up to Rs. 50 lakhs. Ventures that require a bit more capital for their development and function fall under this category.
Tarurn: The Tarun category covers loans above Rs. 5 lakhs and up to Rs. 10 lakhs, and is usually availed by entrepreneurs looking to get the maximum financial support they can get as per their relevant business.

Benefits Of The PMMY Govt Scheme

A few of the key benefits of the PMMY are:

Availability of collateral-free loans at very low interest rates.
Waiver of processing fees for loans up to Rs. 50,000 which helps cut down expenditure for newly started businesses.
Flexible Payment options.
Direct communication, and no involvement of agents and middlemen.
Easy application through the online portal.

How To Apply For The PMMY?

Interested applicants can register and apply for the PMMY loans through the UMANG app, which can be downloaded on both Android and iOS mobile phones, or can do so at the MUDRA portal. Here are the steps to apply through the MUDRA portal:

Visit the PM MUDRA website and select the MUDRA portal.
Click on the Apply Now option for the Mudra loan.
Select the category that suits you - New entrepreneur, existing entrepreneur, or self-employed professional.
Once done with that, fill in the relevant details such as name, email, and mobile number.
After doing so and verifying your identity, applicants are to follow the instructions displayed and once approved, the sanctioned amount will be credited to the applicant’s bank account in the days mentioned.

Conclusion

The Pradhan Mantri Mudra Yojana plays a pivotal role in helping entrepreneurship by providing financial assistance to small businesses at the grassroots level. Providing collateral-free credit helps tackle the critical problem of lack of capital faced by smaller enterprises.

To contact the concerned party regarding your Mudra needs visit here or email help@mudra.org.in for any help.

Frequently Asked Questions