Pradhan Mantri Mudra Yojana (PMMY) Online Apply (2023)

Pradhan Mantri Mudra Yojana: (PMMY) provides MUDRA Loans. Micro-Units Development and Refinance Agency is known by the initials MUDRA. According to the Sishu, Kishor, and Tarun categories, borrowers can obtain business loans via this program in the range of Rs. 50,000 to Rs. 10 lakh.

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A new organization called Micro Units Development Refinance Agency Ltd. (MUDRA) has been established by the Indian government to finance micro and small businesses with loan needs under ten lakh rupees that generate income from non-corporate, non-farm sources.

India is home to a sizable number of micro, small, medium, and big businesses. This number is expanding faster than before, and if it is effective, it might have a significant positive impact on the economy of the nation. However, a lack of funding causes a lot of these to stall out and become trapped. The Pradhan Mantri Mudra Yojana pmmy is a program that the Indian government has put in place to facilitate smooth money flow. Working under this program, businesses can obtain financial assistance in the form of a Pradhan Mantri Mudra Yojana and realize their professional aspirations.

Pradhan Mantri Mudra Yojana

The Pradhan Mantri Yojana was introduced in 2015 with the intention of assisting small businesses in growing and succeeding. Under this program, businesses in the for-profit and nonprofit sectors can apply for loans, with the maximum amount they can receive being Rs. 10 lakh.

As previously said, the Pradhan Mantri Yojana scheme was exclusively established to support the expansion and ultimate success of Indian small-scale businesses. On April 8, 2015, this program was formally introduced with the goal of sponsoring numerous similar businesses. The acronym’Mudra‘ stands for Micro Units Development and Refine Agency, and it primarily provides finance assistance to businesses in both the for-profit and nonprofit sectors. Any qualifying business or person who applies for a Pradhan Mantri Mudra Yojana is entitled to get financial assistance up to a maximum of Rs. 10 lakhs. Ideally, the following businesses would be qualified to get this loan.

  1. NBFCs (Non-banking financial corporations)
  2. Small finance banks
  3. MFIs (Micro finance institutions)
  4. Commercial banks
  5. RRB’s (Railway recruitment boards)

Pradhan Mantri Mudra Yojana

Companies of the following types are eligible for loans under the Pradhan Mantri Mudra Yojana

  • Railway Recruitment Boards (RRB’s)
  • Micro Finance Institutions (MFIs)
  • Commercial Banks
  • Non-Banking Financial Corporations (NBFCs)
  • Small Finance Banks

Types of Pradhan Mantri Mudra Yojana Products

There are three types of Pradhan Mantri Mudra Yojana, namely Tarun, Kishor, and Shishu.

Name of Scheme Loan Amount
Shishu Up to Rs.50,000
Kishor Rs.50,000 to Rs.5 lakh
Tarun Rs.5 lakh to Rs.10 lakh

1. Sishu Yojana

Micro or small business owners have the greatest advantage in this category because they can apply for up to Rs. 50,000 in funding. The Shishu Yojana works best for enterprises who need a small amount of funding to start their business. The business owners will need to provide specific information about their business plans in addition to quoting the kind and amount of machinery they will need to purchase in order to submit a successful application to this category.

So much so that even the contact information for the machinery supplier would have to be given. The likelihood of the loan being approved will be high without these details. On this product, there will be no processing charge. The following documents would be necessary for this product.

  1. Quotation of all purchases including machinery and equipment
  2. Details of all purchases
  3. Details of supplier/s that will provide machinery and equipment

2. Kishor Yojana

The Pradhan Mantri Mudra Yojana plan has a category called Kishor that is perfect for business owners looking to grow an already successful enterprise. Loan requests can be made for amounts between 50,000 and 5 lakhs rupees. Applicants must submit a completed application form along with the necessary documentation that will clarify and establish the status of their organization in order to be eligible to apply for Kishor. The particular paperwork needed for this product under the Pradhan Mantri Mudra Loan is.

  1. Account statements from an existing banker for the latest six months (if any)
  2. Balance sheet dating from the last two years
  3. Memorandum of Association (MOA) (if any)
  4. Articles of Association (AOA) (if any)
  5. An estimated balance sheet for a one year or the entire tenure of the loan
  6. Account of successful sales in the current financial year, before the application of loan
  7. Income tax/ Sales returns
  8. A report that will demonstrate the technical as well as economic sustainability of the business

3. Tarun Yojana

This is a Mudra lending program, similar to Kishor, that provides loans to any small business owners who want to grow their enterprises. If the borrower satisfies the requirements for eligibility, he or she may request an amount up to Rs. 10 lakhs. The documentation for this Pradhan Mantri Mudra Yojana that must be presented include.

  1. Balance sheet dating from the last two years
  2. A report that will demonstrate the technical as well as economic sustainability of the business
  3. Memorandum of Association (MOA) (if any)
  4. Articles of Association (AOA) (if any)
  5. Account statements from an existing banker for the latest six months (if any)
  6. An estimated balance sheet for a one year or the entire tenure of the loan
  7. Account of successful sales in the current financial year, before the application of loan
  8. Income tax/ Sales returns
  9. Proof of identity (PAN card, Aadhar card, drivers license, voter’s ID, etc.)
  10. Proof of address (Passport, driver’s license, Aadhar card, etc.)
  11. SC, ST, OBC, etc. certificates (if any)

Type of Industries that Can Apply for Pradhan Mantri Mudra Yojana

The following industries are eligible to qualify for a Pradhan Mantri Mudra Yojana.

  1. Shopkeepers
  2. Business vendors
  3. Food production industry
  4. Agriculture sector
  5. Small scale manufacturers
  6. Restoration and repair shops
  7. Handicraftsmen
  8. Service based companies
  9. Truck owners
  10. Self-employed entrepreneurs

Benefits of Pradhan Mantri Mudra Yojana

The Pradhan Mantri Mudra Yojana plan has a number of advantages, some of which are listed below;

  • Banking and financial services can be availed in both rural and urban areas.
  • Financial backing can be obtained by micro-small businesses and start-ups.
  • Business loans can be taken for small amounts at affordable interest rates.
  • The borrower’s credit guarantee is taken by the government, so if a borrower is unable to repay the amount borrowed, the responsibility for the loss will be borne by the government.
  • Food vendors, shopkeepers and other small business owners can make the most of this scheme.
  • Financial aid is available through this scheme in areas where people have no access to basic banking facilities.
  • The repayment period of the scheme can extend up to seven years.
  • Women borrowers can avail the loan at discounted interest rates.
  • Refinance schemes can also be availed with designated lenders.
  • Individuals who wish to generate income through micro enterprise activities can avail the Micro Credit Scheme.
  • The Pradhan Mantri Mudra Yojana  is in collaboration with the “Make In India” campaign which the government has initiated to foster innovation, facilitate investment, improve skill development, and build the best manufacturing infrastructure in the country.
  • There is no need for collateral or security to avail this scheme.
  • The funds borrowed through this scheme can only be used for business purposes.

Eligibility Criteria of Pradhan Mantri Mudra Yojana

Eligibility Status


Age Limit

18 years – 65 years

Amount of Loan

Shishu Yojana – Up to Rs. 50,000

Kishor Yojana – Rs. 50,000 – Rs. 1,00,000

Tarun Yojana – Rs. Up to 1 Lakh

Type of Industry

Individual occupied in agriculture, fruit and vegetable vendor, Craftsmen, small scale manufacturer, store owner.

Company Status

Shishu – New company commencement

Kishor & Tarun – Expansion of existing company

Tenure of Loan

3 years – 5 years

Required Documents for the Pradhan Mantri Mudra Yojana

The following listed documents would be the standard need when applying for a Pradhan Mantri Mudra Yojana, even if they might vary depending on the type of product chosen;

For Sishu Loan

  • Proof of identity – Self attested copy of Voter’s ID Card / Driving Licence / PAN Card / Aadhaar Card / Passport / Photo Ids issued by Govt. authority etc.
  • Proof of Residence : Recent telephone bill / electricity bill / property tax receipt (not older than 2 months) / Voter’s ID Card / Aadhar Card / Passport of Individual / Proprietor / Partners Bank passbook or latest account statement duly attested by Bank Officials / Domicile Certificate / Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
  • Applicant’s recent Photograph (2 copies) not older than 6 months.
  • Quotation of Machinery / other items to be purchased.
  • Name of Supplier / details of machinery / price of machinery and / or items to be purchased.
  • Proof of Identity / Address of the Business Enterprise – Copies of relevant Licences / Registration Certificates / Other Documents pertaining to the ownership, identity of address of business unit, if any
  • Proof of category like SC / ST / OBC / Minority etc.

For Kishore and Tarun Loan

  • Proof of identity – Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card/Passport.
  • 2) Proof of Residence – Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
  • Proof of SC/ST/OBC/Minority.
  • Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
  • Applicant should not be defaulter in any Bank/Financial institution.
  • Statement of accounts (for the last six months), from the existing banker, if any.
  • Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
  • Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
  • Sales achieved during the current financial year up to the date of submission of application.
  • Project report (for the proposed project) containing details of technical & economic viability.
  • Memorandum and articles of association of the company/Partnership Deed of Partners etc.
  • In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.

Pradhan Mantri Mudra Yojana Features

  • Type of Facility: Working Capital and Term Loan
  • Purpose : Business purpose, capacity expansion, modernization
  • Target Group : Business Enterprises in Manufacturing, Trading and Services sector including allied agricultural activities.
  • Quantum of loan (Min/Max)
    • Maximum loan amount : Upto Rs 10 lacs
    • Loans upto Rs.50,000 are categorised as SHISHU
    • Loans from Rs.50,001 to Rs.500,000 are categorised as KISHORE
    • Loans from Rs.500,001/- to Rs.10,00,000/- are categorised as TARUN
  • Margin (%)
    • Upto Rs. 50,000/- Nil
    • Rs. 50,001 to Rs. 10 lacs: 10%
  • Pricing :Competitive Pricing Linked to MCLR
  • Repayment Period
    • WC/TL: in 3 – 5 yrs including a moratorium of upto 6 months depending on the activity/ income generation.
    • Review of WC/TL to be done annually.
  • Processing Fee
    • Nil for Shishu and Kishore to MSE Units
    • For Tarun: 0.50%(plus applicable tax) of Loan amount

Pradhan Mantri Mudra Yojana Application Process

Online Apply

The following are the prerequisites for the enrollment process:
  • ID Proof
  • Address Proof
  • Passport size photograph
  • Applicant Signature
  • Proof of Identity / Address of Business Enterprises
  • Go to PM MUDRA official website after that, we select the Udyamitra portal
  • Click on Mudra loan “Apply Now”
  • Select one of the following: New entrepreneur/ Existing Entrepreneur/Self-employed professional
  • Then, Fill in the name of the applicant, email, and Mobile number and Generate OTP

Apply Online

After Successful Registration

  • Fill in Personal Details and Professional Details
  • Select hand-holding agencies if any help is Required for preparing project proposals etc. Otherwise, click “Loan Application Center” and apply now.
  • Select the category of loan required – Mudra Sishu / Mudra Kishore/ Mudra Tarun etc.
  • The applicant then needs to fill in the Business Information like business name, Business Activity, etc., and select Industry types like Manufacturing, service, Trading, or Agricultural allies.
  • Fill in Other Information like Fill the director Details, Banking/ Credit facilities Existing, Credit facilities Proposed, Future estimates, and Preferred Lander
  • Attached are all required Documents: ID proof, address proof, Applicant photo, Applicant Signature, Proof of Identity/ Address of Business Enterprise, etc.
  • Once the application for is submitted an Application Number gets generated which needs to be kept for Future Reference.

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