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Banking,Financial Services and Insurance

Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India. It facilitates micro credit/Loan upto Rs. 20 lakhs to income generating micro enterprises engaged in the non farm sector in manufacturing, processing, trading or service sector including activities allied to agriculture

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

The scheme has been classified under four categories as 'SHISHU', 'KISHORE' , 'TARUN' and 'TARUN PLUS' to signify the stage of growth / development and funding needs of the beneficiary micro unit/ entrepreneur. | - Shishu: Covering loans upto Rs.50,000/-. | - Kishore: Covering loans above Rs.50,000/- and upto Rs. 5 lakhs. | - Tarun: Covering loans above Rs. 5 lakhs and upto Rs. 10 lakhs. | - Tarun Plus : Loans up to Rs. 20 lakh for enterpreneurs who have successfully repaid previous loans under the 'Tarun' category.

Who can apply

Individuals; Proprietary concern.; Partnership Firm.; Private Ltd. Company.; Public Company.; Any other legal forms.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Is Khadi Activity Eligible Under PMMY Loans?

Yes. MUDRA loans are applicable for any activity which results in income generation. As Khadi is one of the eligible activities under Textile sector and in case MUDRA loans are taken for income generation, the same can be covered.

Are MUDRA Loans Available For Purchase Of CNG Tempo/Taxi?

MUDRA loans would be available for purchase of CNG Tempo/Taxi, in case the applicant intends to use the vehicle for commercial purposes.

I Have A Savings Bank Account With the Bank, Would Loan Under MUDRA Be Available Based On The SB Account?

Yes. The applicant can approach the branch and apply for the loan in the format being provided by the said lending institution. The terms and conditions of the loan will be governed by the policies of the lending institution, based on the broad guidelines of RBI. The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.

Under PMMY-Shishu Loans, What Is The Turn Around Time For Processing The Loan Proposal?

As per Banking Codes and Standard Board of India (BCSBI), set up by RBI, loan applications should be disposed off for credit limit up to Rs.5 lakh within 2 weeks.

Is It Required To Submit Income Tax Returns For The Preceding 2 Years For Availing Loan Of Rs. 20 Lakh Under PMMY?

Generally, IT returns are not insisted for small value loans. However, the requirement of documents will be advised by the concerned lending institutions based on their internal guidelines and policies.