Pradhan Mantri Mudra Yojana (PMMY) – Details- How to Apply

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What is Mudra Bank Loan Yojana (PMMY) 

Mudra Stands for Micro Units Development & Refinance Agency Ltd – is a new institution set up by Government of India to provide funding to the

  • non-corporate
  • non-farm sector income generating activitists
  • micro and small enterprises  – whose credit needs are below  Rs 10 Lakh Basically for small Business.

For every small business,  To run smoothly, business  should be financially strong.  Established and experienced businessmen manage all the financial issues by themselves.

However, those people who just started their own company we can say that those who are into the start ups or entrepreneurs need help financially.                                                                                  If the help comes from the government, that is a good thing. Indian Government has come up with a Loan scheme that has been named as Pradhan Mantri Mudra Yojana (PMMY).


The big question that now arises in the mind of people is that What is the eligibility criteria to be part of Mudra Bank Loan Scheme and What is the procedure of Loan Application. Other important things are the interest rate & Application forms. But before going to that it is extremely important to Know theCategory of your Business

Eligibility for Prdhan Mantri mudra Yojana – 

  • All “Nonfarm enterprises”
  • Under “Micro Enterprises” and “Small Enterprises” segment
  • Engaged in “income generating activities”
  • Engaged in “manufacturing, trading and services“ and
  • Whose “credit needs are up to Rs.10.00 lacs”

also download – eligibility-criteria

Application Form Download  -Prdhan Mantri mudra Yojana




Here is the step by step information for applying to the Mudra Bank Loan Yojana for all categories i.e. Shishu, Kishor and Tarun.


  • First of all the borrower(Who wishes to take loan) underPMMY needs to visit the Private or Commercial bank nearest to his location
  • Present your Business Idea along with the Loan Application (Forms given below)Along with the form you need to provide proof of identity, Proof of Address and recent passport size photographs
  • All formalities as per the bank instructions are to be filled by the Borrower
  • After completion of above Steps, the Loan will be sanctioned and will be made available to the Loan Seeker.

 Note –  A business idea must be prepared  before applying. You have to present your business idea along with application form

Documents required for Prdhan Mantri mudra Yojana


  • Self certified copy of identity proof such as Voter ID card / PAN Card / Aadhar Card / Passport / Driving License.
  • Residence proof which may contain recent telephone or electricity bill, property tax receipt (not older than 2 months). Voter’s ID card, Aadhar Card & Passport of the borrower can also act as proof of residence.
  • Proof of SC/ST/OBC/Minority.
  • Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
  • The applicant should not be a defaulter in any Bank/Financial institution.
  • Statement of accounts (for the last six months), from the existing banker, if any.
  • Balance sheets of the units along with income tax/sales tax return etc of the last 2 years. (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).
  • Project report (for the proposed project) containing details of technical & economic viability.
  • Sales achieved during the current financial year up to the date of submission of application.
  • Memorandum and articles of association of the company/Partnership Deed of Partners etc.
  • Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth in the absence of third party guarantee.
  • 2 copies of Photographs of each Proprietor/ Partners/ Directors.


Category divided for Prdhan Mantri mudra Yojana – 

There are total three categories that has been divided by Government on the basis of Development and Funding

Micro units or small business had to be categorized to signify the growth stage, Development and Funding requirements. Three categories were created for this purpose Namely “Shishu(Child Category)”, “Kishor Category” and “Tarun Category”.

So how to check in which category your business lies.., here is the detailed explanation of each category –

Shishu(Child) category – This category is for the Start ups.

  • All those businesses that have been just started and looking for Loan will fall in this category.
  • A loan Cover of Rs. 50,000 will be given to all micro units falling in this Category.
  • Interest Rate for Shishu Category is in the range of 10 to 12 %

Kishor Category – For those who have started their business but it has be established yet.

  • A loan cover from Rs. 50,000 to 5 Lakhs will be given to units falling into this category.
  • Interest rate in Kishor category is in the range 14 to 17% percent

Tarun Category – All small business which have been set up and established will fall into this category.

  • There may be some financial requirements for the betterment of business.
  • All small business or units falling into this category will be eligible for a Loan Cover of upto Rs. 10 Lakh.
  • Interest rate in the Tarun category starts from 16 %



Stipulated Credit Limits Loans sanctioned under the scheme up to Rs.50,000Loans sanctioned under the scheme up to Rs.50,001 to Rs.5.00 lacsLoans sanctioned under the scheme up to Rs.5,00,001 to Rs.10.00 lacs
                                                          CATEGORIZATION OF MUDRA LOANS
Prdhan Mantri  Mudra Bank Loan Scheme detailed process –

Many small organizations, companies and start ups, Entrepreneurs in India. All these are collectively known as Micro Units.

  • It has been observed that these Micro Units lack Financial Support.
  • If Financial support is given they can grow and be much better than they are currently.

MUDRA, Full form “Micro units Development and Refinance Agency Ltd.” is an

institution that has been set up by Indian Government in the leadership of PM Sh. Narendra Modi. MUDRA Bank has been set up with only one goal in mind – Fulfilling all the Funding needs of Non Corporate Small Businesses.


Responsibilities of MUDRA Bank –

  • Preparing and Launching the Policy Guidelines
  • Registration and Regulation of MFI Entities.

Note – MFI Stands for Micro Finance Institution

  • Running a Credit Guarantee Scheme
  • Creating a Good Architecture for serving Micro business by Providing them Loan (Financial Assistance)


Pradhan Mantri Mudra Yojana – MUDRA Bank Helpline Detail

For  any doubts, queries regarding the scheme, you can contact the helpline in following ways –

  • Write an Email to –
  • Pradhan Mantri Mudra Yojana (PMMY) is aimed to attain development in an inclusive and sustainable manner by supporting and promoting partner institutions and creating an ecosystem of growth for micro enterprises sector.

Basically, MUDRA Yojana is an initiative to fund the small business in India. The Indian Central Government has already disbursed Rupees 1 Lakh Crore in loans under the scheme across India. 

Credit Facilities  by Pradhan Mantri Mudra Yojana –

No Minimum amount.

  • Maximum Amount – Rs.10.00 lacs.

It would be ensured that at least

  • 60% of the credit flows to Shishu Category Units and
  • the balance to Kishore and Tarun Categories.Within the framework and overall objective of development and growth of Shishu, Kishore and Tarun Units,

Sectors Aimed by Pradhan Mantri Mudra Yojana

  • Sector / activity specific schemes
  • Micro Credit Scheme (MCS)
  • Refinance Scheme for Regional Rural Banks (RRBs) / Scheduled Co-operative Banks
  • Mahila Uddyami Scheme
  • Business Loan for Traders & Shopkeepers
  • Missing Middle Credit Scheme
  • Equipment Finance for Micro Units

—–Common-loan-Application-form-Under-Pradhan-Mantri-MUDRA-Yojana—-free –download ————————-

The state wise details of loans/money sanctioned under the PM MUDRA Yojana can be found at

further information on  MUDRA YOJANA, please visit official website at:

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