Pradhan Mantri Mudra Yojana (PMMY): In April 2025, the Pradhan Mantri Mudra Yojana (PMMY) completed a remarkable journey of 10 years. Launched in April 2015 by Prime Minister Narendra Modi, the scheme was designed to provide financial support to small and micro-enterprises across India. Over the past decade, PMMY has played a crucial role in boosting entrepreneurship and job creation, especially among women, youth, and people from economically weaker sections.
On this occasion PM Narendra Modi shared a message on his X (Twitter) handle, “Today, as we mark, #10YearsOfMUDRA, I would like to congratulate all those whose lives have been transformed thanks to this scheme. Over this decade, Mudra Yojana has turned several dreams into reality, empowering people who were previously overlooked with the financial support to shine. It illustrates that for the people of India, nothing is impossible!”
Today, as we mark, #10YearsOfMUDRA, I would like to congratulate all those whose lives have been transformed thanks to this scheme. Over this decade, Mudra Yojana has turned several dreams into reality, empowering people who were previously overlooked with the financial support… pic.twitter.com/GIwtjLhoxe
— Narendra Modi (@narendramodi) April 8, 2025
Let’s take a look at what the scheme is all about, its benefits, who can apply, and how it has transformed lives:
What Is Pradhan Mantri Mudra Yojana (PMMY)?
PMMY is a government-backed loan scheme aimed at non-corporate, non-farm small and micro enterprises. Under this scheme, loans of up to ₹20 Lakhs are provided by commercial banks, regional rural banks, small finance banks, MFIs (Microfinance Institutions), and NBFCs (Non-Banking Financial Companies).
Launched in 2015, Pradhan Mantri #Mudra Yojana (#PMMY) is helping in creating an inclusive, sustainable and value- based entrepreneurial culture. (1/2)#FinMin2021 #Economyrising #Aatmanirbharforgrowth #ReformsforGrowth#AmritMahotsav pic.twitter.com/3aFhUnqQ27
— Ministry of Finance (@FinMinIndia) December 10, 2021
According to the Press Information Bureau's (PIB) press release, “The Pradhan Mantri MUDRA Yojana (PMMY), launched by the Prime Minister on April 8, 2015, has played a pivotal role in empowering non-corporate, non-farm small and micro enterprises by providing loans of up to ₹10 lakh. To strengthen support for aspiring entrepreneurs, the finance minister announced an increase in the loan limit to ₹20 Lakhs during the Union Budget 2024-25 on July 23, 2024.”
These loans are classified into four categories as per its official portal:
i) Shishu: covering loans upto Rs 50,000/-
ii) Kishore: covering loans above Rs 50,000/- and up to Rs 5 Lakhs
iii) Tarun: covering loans above Rs 5 lakh and up to Rs 10 Lakhs
iv) Tarun Plus: Rs 10 Lakhs and up to Rs 20 Lakhs
Key Features of Pradhan Mantri Mudra Yojana (PMMY)
i) Collateral-Free Loans: No need to provide security or a guarantor.
ii) Simple Application Process: Easily available through banks and online platforms.
iii) Affordable Interest Rates: Varies depending on the lending institution but remains competitive.
iv) Flexible Repayment Tenure: Up to 5 years with a moratorium period.
v) No Processing Fees for Shishu Loans: Makes it easier for micro-entrepreneurs to start small.
Who Can Apply For Pradhan Mantri Mudra Yojana (PMMY)?
The scheme is open to:
i) Indian citizens aged 18 to 65 years.
ii) Mudra loans extend credit to non-farm enterprises in manufacturing, trading, and services whose credit needs are below Rs 10 Lakhs.
iii) New entrepreneurs planning to start a micro-enterprise.
iv) Existing small business owners looking to expand operations.
The applicant should have a solid business plan and meet the bank’s credit criteria.
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Benefits of Pradhan Mantri Mudra Yojana (PMMY)
प्रधानमंत्री मुद्रा योजना के माध्यम से छोटे एवं मध्यम व्यवसाय के उद्यमियों के सपनों को साकार कर रही मोदी सरकार।
— BJP (@BJP4India) August 1, 2019
योजना के अंतर्गत अब तक 19.60 करोड़ लाभार्थियों को 9.59 लाख करोड़ रुपये की आर्थिक सहायता प्रदान की जा चुकी है। pic.twitter.com/53s4QBE9bs
i) Encourages people to become job creators instead of job seekers.
ii) A large percentage of Mudra beneficiaries are women, SC/STs, and OBCs.
iii) Helps turn ideas into businesses (Startups and Micro Units) with low-risk financing.
iv) Generates employment and income at the grassroots level.
v) It encourages financial inclusion.
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How To Apply For Pradhan Mantri Mudra Yojana (PMMY)?
Step 1: Visit your nearest bank or apply through the PM MUDRA official website.
Step 2: Submit your business plan, basic KYC documents, and other necessary details.
Step 3: Choose the appropriate category: Shishu, Kishore, Tarun, or Tarun Plus.
Step 4: Get digital approval from your chosen bank. You can also check the real time status of your application.
Step 5: Once approved, the loan is disbursed directly to your bank account.
If you have a business dream, Pradhan Mantri Mudra Yojana (PMMY) might just be the support you need to make it real.
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Image credit: Freepik
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