mudra pmmy loan

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Honorable Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply online through this portal . Under the aegis of PMMY, MUDRA has created three products namely ‘Shishu‘, ‘Kishore‘ and ‘Tarun‘ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.


Types of PMMY Loans

The Pradhan Mantri Mudra Yojana (PMMY) has three products as per the funding requirements of the Beneficiary or the Entrepreneur.

Name of the Type of LoanCoverage of the Loan
Shishu<  ₹50,000
KishorAbove ₹50,000 up to ₹5,00,000
TarunAbove  ₹5,00,000 up to  ₹10,00,000

Sectors Covered under PMMY

To maximize coverage of beneficiaries and tailor products to meet requirements of specific business activities, sector/activity focused schemes would be rolled out. To begin with, based on the higher concentration of businesses in certain activities/sectors, schemes are proposed for:

SectorCommentsTypes of Activities under that Sector
Land Transport SectorLoans to support the purchase of transport vehicles. These vehicles could be used for goods or personal transport.Auto-rickshaws, E- rickshaws, etc. Passenger cars and taxis. Small-goods transport vehicles. Other three-wheelers.
Service SectorThis includes community services, social services, or personal services.Hair and beauty salons, beauty parlours, etc. Tailoring stores, boutiques, dry cleaning services, etc. Gymnasium, Athletic training, medical shops, etc. Garage, Cycle & motorcycle repair centres, etc. Other services like photocopying shops, courier agencies, etc.
Food Product SectorSupport for small scale food industries.Manufacturing papads, pickles, jams/jellies, and other agricultural produce/preservation methods. Sweet shops, small service food centres, etc. Everyday catering services, canteens, etc. Micro cold storages, ice-making factories, Cold chain vehicles, ice cream making industries, etc. Bakeries and Baked products manufacturing.
Textile SectorSupporting micro textile industries that produce garment and non-garment products.Handloom and power loom industry Handwork industry like embroidery, chikan work, dyeing and printing, knitting, etc. Mechanical or computerized stitching for garments and non-garments. Production of automobile and furnishing accessories, etc.

What is the main purpose of MUDRA Loan?

Mudra loan is extended for a variety of purposes which result in income generation and employment creation. The loans are extended mainly for: Business loan for Vendors, Traders, Shopkeepers and other Service Sector activities. Working capital loan through MUDRA Cards.

What is MUDRA card?

MUDRA Card is a debit card issued against the MUDRA loan account, for working capital portion of the loan. The borrower can make use of MUDRA Card in multiple drawals and credits, so as to manage the working capital limit in cost-efficient manner and keep the interest burden minimum. MUDRA Card also helps in digitalization of MUDRA transactions and creating credit history for the borrower. MUDRA Card can be operated across the country for withdrawal of cash from any ATM / micro ATM and also make payment through any ‘Point of Sale’ machines.


What is MUDRA Credit Plus?

MUDRA – Micro Units Development and Refinance Agency Ltd – Bank, which will refinance for lending to micro businesses or units, will initially have products and schemes under its umbrella, named Shishu, Kishor and Tarun.

MUDRA will be responsible for developing and refinancing through a Pradhan Mantri MUDRA Yojana and all micro-finance institutions (MFIs) that are in the business of lending to micro or small business entities engaged in manufacturing, trading and service activities.

It will also partner with State or regional-level coordinators to provide finance to last-mile financiers of small/micro business enterprises. It will go beyond the ‘credit only approach’ and offer a ‘credit-plus solution’ for enterprises spread across the country.

What are the synergies aligned with Pradhan Mantri MUDRA Yojana (PMMY)?

The major schemes of the Government like Make in India, Stand-Up India,National Rural Livelihoods Mission [NRLM],Deendayal Antodaya Yojana [DAY] and National Skill Development Corporation [NSDC] are the synergies aligned with the Pradhan Mantri MUDRA Yojana (PMMY) scheme.

What is the normal repayment tenure of MUDRA loans?

The normal tenure of MUDRA loan repayment is 12 to 60 months.

What is the processing time of MUDRA loan?

 Shishu loans are generally disbursed within 7-10 working days while the other categories have processing times varying from lender to lender.

Where you can apply for MUDRA Loan?

MUDRA loans under PMMY are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply online through this portal .


MUDRA MITRA is a mobile phone application available in Google Play Store and Apple App Store, providing information regarding ‘Micro Units Development and Refinance Agency Ltd. (MUDRA)’ and its various products / schemes. It guides a loan seeker to approach a Banker in availing MUDRA loan under Pradhan Mantri Mudra Yojana (PMMY). Users can also access useful loan related material including sample loan application forms.