A Guide to Pradhan Mantri MUDRA Yojana Loans, Check For Eligibility And Other Details

The government of Narendra Modi launched the Pradhan Mantri MUDRA Yojana (PMMY) in 2015 to provide loans of up to 10 lakh to small or micro firms outside the corporate and farming sectors.

MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, intends to provide loans to small enterprises through a variety of financial institutions such as banks, non-banking financial companies (NBFCs), and microfinance institutions (MFIs). 

This project, announced in the Fiscal Year 2016 Union Budget, launched three new products: ‘Shishu,’ ‘Kishore,’ and ‘Tarun.’ These items represent several stages of growth and finance needs for micro units or entrepreneurs, serving as a roadmap for their advancement and expansion.

Eligibility For Pradhan Mantri Mudra Yojana

The Non-Corporate Small Business Segment (NCSB) includes many sole proprietorship or partnership firms that operate as small manufacturing units, service providers, shopkeepers, fruit or vegetable vendors, truck operators, food-service establishments, repair shops, machine operators, small-scale industries, artisans, food processors, and similar entities. These rural and urban companies are eligible for MUDRA financing. 

Eligibility Criteria 

  • The candidate must be an Indian citizen.
  • Under the concept, eligible individuals with a credible business plan for a small business can apply for financing. Across the three loan categories, these loans are accessible for income-generating operations in the manufacturing, trading, service, and linked agricultural sectors.
  • There should be no past loan defaults linked to the applicant.
  • The applicant’s business must be at least three years old.
  • Entrepreneurs seeking the loan should be between the ages of 24 and 70.

Different Types Of Loans

The PMMY plan provides three types of loans:

  • Shishu (up to Rs.50,000 in loans)
  • Kishore (loans greater than Rs.50,000 and up to Rs.5 lakh)
  • Tarun (loans exceeding Rs.5 lakh but not exceeding Rs.10 lakh).

Existing small firms can get finance at reasonable interest rates to help in their expansion efforts.

Steps To Apply For Pradhan Mantri Mudra Yojana

  • Those interested in applying should visit the official website at
  • From the Home Screen, select the ‘Apply Now’ option.
  • Choose from the following options: “New Entrepreneur,” “Existing Entrepreneur,” or “Self-Employed.”
  • For new registrants, fill out the ‘Applicant’s Name,’ ‘Email Address,’ and ‘Mobile Number’ fields.
  • Generate an OTP and finish the registration procedure.

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Stuti Talwar

Expressing my thoughts through my words. While curating any post, blog, or article I'm committed to various details like spelling, grammar, and sentence formation. I always conduct deep research and am adaptable to all niches. Open-minded, ambitious, and have an understanding of various content pillars. Grasp and learn things quickly.

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