Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by the Government of India to provide financial support to non-corporate, non-farm small and micro-enterprises. The initiative channels collateral-free credit through commercial banks, RRBs, Small Finance Banks, MFIs, and NBFCs, helping micro-entrepreneurs start or expand their business activities.
What is PMMY Scheme?
Launched under the Micro Units Development and Refinance Agency (MUDRA), PMMY enables commercial banks, RRBs, small finance banks, MFIs, and NBFCs to extend credit facility to small business entities. Loans under Mudra Yojana do not require any collateral security or third-party guarantee.
Important Information
Eligibility & Benefits
- Eligibility
- Indian citizens with a non-farm income-generating micro or small business (manufacturing, trading, or services), including individuals and businesses formed under a Joint Liability Group, as defined under the MSMED Act, 2006.
- Benefits
- Collateral-free loans: Shishu (up to ₹50,000), Kishor (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh), with no processing fee on Shishu loans and repayment tenure of up to 5 years.
- Required documents
- Identity and address proof, business plan or existing business proof, bank account details — exact document list is set by the lending bank/NBFC.
How to Apply
- Application process
- Apply directly through any participating bank, NBFC, or microfinance institution; the MUDRA portal itself is informational and does not process loan applications directly.
Official Source
Department of Financial Services, Ministry of Finance
Visit Official Website / Apply
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Source: MUDRA (Micro Units Development and Refinance Agency Ltd.)
Last verified: 2026-09-06
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