Pradhan Mantri Mudra Yojana

Why in news?

The Pradhan Mantri Mudra Yojana of the Government of India completed 10 years on 8 April 2025.
More than 52 crore loans worth more than Rs 32 lakh crore have been sanctioned under this scheme so far.

Pradhan Mantri Mudra Yojana (PMMY):

This scheme was launched by the Government of India in the year 2015.
It provides collateral-free institutional loan up to Rs 10 lakh for small business enterprises.
It is provided by member lending institutions; such as-
- Scheduled Commercial Banks
- Regional Rural Banks
- Non-Banking Financial Companies
- Microfinance Institutions
This loan can be used for the following activities.
- Manufacturing
- Trading
- Service sector
- Income-generating activity in agriculture

Loan Category	Loan Limit	Eligibility
Shishu	Up to ₹50,000	Start-up entrepreneurs starting a new business
Kishor	₹50,001 to ₹5 lakh	Entrepreneurs expanding their business
Tarun	₹5 lakh to ₹10 lakh	For already established and expanding businesses
Tarun Plus	₹10 lakh to ₹20 lakh	Entrepreneurs who have successfully repaid their Tarun category loan

Collateral-free loan up to ₹10 lakh (now ₹20 lakh under "Tarun Plus") available.
Self-employment and entrepreneurship are encouraged.
Women are given priority and their economic empowerment is done.
Supports agriculture-based and rural income-generating activities.
Connects disadvantaged sections of society (SC/ST/OBC/Minorities) to the formal financial system.
Expansion of small businesses boosts local employment and economic growth.
Timely repayment of loan builds the credit history of the beneficiary, which leads to better loan facilities in future.
Promotes the contribution of micro enterprises to the national economy.

First of all you have to decide what type of business or self-employment you want to start (eg shop, services, construction work etc.).
While giving loan to the bank, a brief business plan has to be given which should contain cost, potential profit, and return plan.

Under the Mudra scheme, application forms are available for different categories (Shishu, Kishor, Tarun), which can be obtained at the bank branch or www.mudra.org.in.
The application is reviewed by the bank. After approval, the loan is transferred directly to the bank account.