All About Pradhan Mantri Mudra Yojana

Recently, PM Shri. Narendra Modi congratulated Pradhan Mantri Mudra Yojana (PMMY) beneficiaries as the scheme completed 10 years since its launch in April 2015. PMMY has been one of the most successful schemes launched by the Government of India. It has provided financial assistance to countless enterprises. In this blog post, we will discuss all about Pradhan Mantri Mudra Yojana, including its goals, eligibility, documents, and more. 

What is Pradhan Mantri Mudra Yojana?

PMMY full form is Pradhan Mantri Mudra Yojana. Launched on April 8, 2015, it is a flagship scheme of the PM Shri. Narendra Modi-led Government. PMMY facilitates micro credit loan to income generating micro enterprises engaged in the non farm sector in manufacturing, trading or service sectors including activities allied to agriculture like poultry, dairy, beekeeping, etc. 

The loans under Pradhan Mantri Mudra Yojana can be availed via eligible Member Lending Institutions. Previously, the scheme facilitated micro credit loans up to Rs. 10 lakh. However, during the Union Budget 2024-2025, the Finance Minister announced an increase in the loan limit to Rs. 20 lakh. This new limit took effect from October 24, 2024. 

Goals of PM Mudra Yojana

The GOI launched PMMY keeping in mind certain goals to be achieved during the scheme’s implementation. The most important goals of PMMY are as follows:

• For establishing policy standards for funding micro and small businesses.

• Registering and regulating all microfinance institutions and associated organizations.

• For assisting small businesses in their continued development and expansion.

• Helping others with lesser incomes start and grow their businesses.

• To help cut the cost of financing for those who are unbanked and to make it easier for them to obtain financing.

• To provide preference to SC/ST borrowers.

• For overseeing all microfinance organizations involved in manufacturing, trade, and providing services.

Types of Loans Available under PMMY

The loans under PMMY scheme include the following:

• Commercial vehicle loan.

• Transport vehicle loan.

• Working capital loan.

• Loan for plant and machinery.

• Loans for agri-allied non-farm income generating activities.

• Business loans for traders and shopkeepers.

To avail any of these loans, you must file a pradhan mantri mudra yojana application form with an eligible member lending institution.

Member Lending Institutions Offering PMMY Loan

The Member Lending Institutions offering pradhan mantri mudra yojana loan include the following:

• Public Sector Banks.

• Private Sector Banks.

• State operated cooperative banks.

• Rural banks from the regional sector.

• Micro Finance Institution (MFI).

• Non-Banking Finance Company (NBFC).

• Small Finance Banks (SFBs).

• Other financial intermediaries approved by Mudra Ltd. 

Who is Eligible for PMMY Loan?

Check the eligibility criteria for pradhan mantri mudra yojana loan below:

• The eligible borrowers include individuals, sole proprietorship, partnership firm, private limited company, public limited company and any other legal forms.

• The applicant must not be a defaulter to any bank or financial institution and should have a satisfactory credit track record.

• The individual borrowers may be expected to have the necessary knowledge, expertise, or abilities in order to carry out the proposed activity.

• The nature of the proposed activity and its requirements determine if any educational qualifications are necessary.

PMMY Documents Required

The following documents are required to be submitted during PMMY loan application process:

• Valid photo identity proof

• Proof of age

• Current address proof

• Proof of income

• Last 6 months Bank statement

• Loan application form

• Ownership proof of residence/office

• Proof of continuity of business

• Trade references

How to Apply for Mudra Loan?

To apply for Mudra Loan under the Pradhan Mantri Mudra Yojana, first, you need to register on the Uyamimitra portal by fulfilling the following steps:

Step 1: Visit the official PM Mudra website.

Step 2: Now, on the homepage, navigate to Quick Links and then click on the Udyamimitra link.

Step 3: Once you are on the Udyamimitra portal, click on Mudra Loan “Apply Now”.

Step 4: Select one of the following new entrepreneur/existing entrepreneur/self-employed professional.

Step 5: Fill in the applicant’s name, email and mobile number and generate OTP.

After you successfully register on the Udyamimitra portal, you need to follow the steps below to apply:

Step 1: Fill in the personal and professional details.

Step 2: Now, you need to select hand-holding agencies if you require help for preparing project proposals. Otherwise, click “Loan Application Center” and then apply.

Step 3: Afterwards, you must select the loan category you require from Mudra Shishu, Mudra Kishore and Mudra Tarun. 

Step 4: Thereafter, the applicant needs to fill in business details including business name, business activity, etc. and then select the industry type like manufacturing, service, trading or activities allied to agriculture.

Step 5: Enter details such as owner information, existing banking or credit facilities, proposed credit needs, future projections, and your preferred lender.

Step 6: Upload all required documents, including ID proof, address proof, applicant photo and signature, and identity/address proof of the business enterprise.

Step 7: Submit the application to generate an Application Number, and make sure to save it for future reference.

By completing all the aforementioned steps, you can apply for PM Mudra Yojana online. If you do not want to apply for the scheme online, you can visit the nearest branch of a participating bank or financial institution. 

Conclusion

PM Mantri Mudra Scheme is a scheme that has been providing financial support to eligible individuals and businesses since 2015. In April 2025, the scheme completed 10 years. Originally, the scheme facilitated micro credit loans up to Rs. 10 lakh. But now, the loan limit is up to Rs. 20 lakh. This means that the eligible business and individuals will be able to access higher financial support to expand their operations, invest in infrastructure, or meet working capital needs more effectively. One can apply for PMMY online through the Udyamimitra portal. Alternatively, they can visit any participating bank, NBFC, or microfinance institution to apply for the loan in person.

Frequently Asked Questions (FAQs)

Q1. What is the full form of PMMY?

A. The full form of Pradhan Mantri Mudra Yojana.

Q2. How can I apply for a PMMY loan online?

A. You can apply online through the Udyamimitra portal.

Q3. When did the Government of India launch PMMY?

A. The PMMY was launched on 8th April 2015.

Q4. What is the PMMY loan limit in 2025?

A. The loan limit under PMMY in 2025 is up to Rs. 20 lakh.

Q5. What are Member Lending Institutions under PMMY?

A. These are banks, NBFCs, MFIs, and other financial institutions approved to offer PMMY loans.

Q6. Who is eligible for PMMY loan?

A. Any non-farm income-generating micro or small enterprise can apply.

Q7. What are the three categories of PMMY loans

A. The three categories of PMMY are Shishu, Kishore, and Tarun.

Author: Manish Kumar

I’m Manish Kumar, a content management specialist. I simplify complex financial and regulatory topics into clear, insightful content. As a regular contributor to the Registrationwala portal, I provide updates on finance, Tax, government schemes, compliance, and other incorporation information. My goal is to keep you informed about key industry developments and their impact.