PM Mudra Yojana: Who is eligible, loan categories, how to apply

To encourage entrepreneurship and support small businesses, the government has introduced the Pradhan Mantri Mudra Yojana, a flagship scheme that provides financial assistance to micro enterprises and individuals engaged in non-agricultural activities.

Who is eligible?
Any Indian citizen involved in non-agricultural activities, such as manufacturing, trading or services, can apply for a PMMY loan. Both, new and existing enterprises, whose credit needs are up to Rs.10 lakh, are eligible.


Loan category
The credit is categorised in three baskets: Shishu (up to Rs.50,000), Kishore (Rs.s.50,001-Rs.5,00,000), and Tarun (Rs.5,00,001-Rs.10,00,000). Depending on their financial requirements, applicants can choose from the above categories. The category determines the amount of financial assistance.

Approaching financial institutions
Individuals can approach various financial institutions, such as banks, NBFCs, and micro finance institutions, that are registered under the PMM Yojana to initiate the loan application process.

Submission of application
Applicants need to provide identity proof, address proof and other relevant business documents. The loan application form should be filled with accurate and complete information about their business and financial needs. After considering factors such as the business plan, financial viability and creditworthiness, the loan amount is approved, and then disbursed.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.