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All about Pradhan Mantri Mudra Yojana loans

[] Know objective, advantages and how to application for Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana

Any interested beneficiary who wants to start their own business and seek a bank loan to progress their business can apply under the Pradhan Mantri Mudra Yojana. Prior to the implementation of this scheme in our nation, entrepreneurs had to go to banks to seek loans to start their own businesses, and face many issues but could not get the loan without a guarantee. With PMMY, all enterprises would be able to readily obtain bank loans of up to Rs 10 lakh by 2022. 

Commercial banks, RRBs, small finance banks, cooperative banks, and MFIs offer Mudra loans. The Mudra Loan Scheme has no fixed interest rate. The primary interest rate on these loans is 12%. The loan repayment time has been extended to five years.

Pradhan Mantri Mudra Yojana was launched on April 8, 2015 by Prime Minister Narendra Modi

Pradhan Mantri Mudra Yojana: What are mudra cards?

Mudra Loan refers to the loan issued under the Pradhan Mantri Mudra Yojana and Mudra cards are debit cards issued to Mudra loan holders. Their characteristics are:

  • You can withdraw money from ATMs with this card.
  • The bank makes a loan section in your name up to a certain limit. You can withdraw money with this card up to the bank’s approved limit.
  • This card can be used to meet the business’s working capital needs.
  • Currency transactions using Mudra cards are now entirely digital.
  • The beneficiary can use this card to withdraw money from ATMs located around the country and to make payments at Point of Sale devices.

PMMY: Mudra loan types

  • Shishu Loan – The bank will provide a loan of up to Rs 50,000.
  • Kishor Loan – The bank would provide a loan ranging from Rs 50,000 to Rs 5 lakh.
  • Tarun Loan – The bank would provide a loan ranging from 5 lakh to 10 lakh.

Pradhan Mantri Mudra Yojana: Eligibility

  • The age of the applicant must be at least 18 years old.
  • Person should have valid ID proof.
  • The groups listed below are eligible for this scheme:
  1. Small Business 
  2. Artisans 
  3. Shopkeepers 
  4. People engaged with Agriculture 

Pradhan Mantri Mudra Yojana: Documents required 

  • Application form for Mudra
  • 2 passport-sized colour photos
  • Photo identification is required
  • Address verification
  • Proof of income
  • Account statement (last 6 months)

Pradhan Mantri Mudra Yojana: Advantages 

  • It assists the country’s entrepreneurs by providing banks with low-interest loans to launch their own businesses.
  • You will not be required to provide any guarantee in order to obtain a loan under this plan.

Pradhan Mantri Mudra Yojana: Lending Activities

Mudra loans are provided under the Pradhan Mantri Mudra Yojana to generate revenue and employment. This loan is intended for the following purposes:

  • Vendor, merchant, and shopkeeper loans, as well as other service sector operations
  • Mudra Card provides a working capital loan.
  • Micro-unit equipment financing.
  • Loan of a transport vehicle for commercial use only.
  • Loans for non-farm income-generating businesses such as fish farming, beekeeping, poultry farming, and so on.
  • Taylor was accompanied by loans for two-wheelers that are only utilised for business purposes.

Pradhan Mantri Mudra Yojana: How to Apply?

If you wish to acquire a bank loan to establish your business through the Pradhan Mantri Mudra Yojana, you must follow the steps outlined below.

  • To begin, to apply under this plan, the applicant must fill out the Pradhan Mantri Mudra Yojana application form from the relevant bank.
  • Following that, all of the information requested in the application form, such as name, address, mobile number, Aadhar card number, and so on, must be filled out and submitted to the relevant bank.
  • After the bank officer has verified your application form and all of your documentation, the loan money will be deposited into your bank account within one month.

Pradhan Mantri Mudra Yojana: Steps to login in portal 

  • To begin, go to the Pradhan Mantri Mudra Yojana’s official website.
  • It will now appear in front of you at home.
  • After that, you must click on the Login for PMMY Portal link.

Pradhan Mantri Mudra Yojana: Steps to login in portal 

  • The login form will now appear in front of you, and you must login by entering your username, password, and captcha code.
  • You will then be able to access the PMMY Portal.

Pradhan Mantri Mudra Yojana: Steps to download toll free number

  • To begin, go to the Pradhan Mantri Mudra Yojana’s official website.
  • It will now appear in front of you at home.
  • You must click on the Contact Us link on the home page.

Pradhan Mantri Mudra Yojana: Steps to download toll free number

  • Now, a new page will appear in front of you, and you must click on the download link printed next to the PMMY toll free number.

Pradhan Mantri Mudra Yojana: Steps to download toll free number

  • When you click on this link, all of the state-specific toll free numbers will be downloaded.

Pradhan Mantri Mudra Yojana: Beneficiaries

Financial Year No. of PMMY Loans sanctioned in a year Loan Sanctioned amount (in Rs) Loan disbursed amount (in Rs)
2015-2016 34880924 137449.27 crore 132954.73 crore
2016-2017 39701047 180528.54 crore 175312.13 crore
2017-2018 48130593 253677.10 crore 246437.40 crore
2018-2019 59870318 321722.79 crore 311811.38 crore
2019-2020 62247606 337495.53 crore 329715.03 crore
2020-2021 50735046 321759.25 crore 311754.47 crore
2021-2022 53795526 339110.35 crore 331402.20 crore
2022-2023 4206708 * 29894.08 crore * 28994.94 crore *
Total 349361060 1921636.91 crore 1868382.28 crore

*Provisional data

Pradhan Mantri Mudra Yojana: COVID-19 concession

The economic situation of the citizens of India has been severely harmed as a result of the lockdown. Keeping this in mind, Finance Minister, Nirmala Sitharaman, announced the Atmanirbhar Bharat Abhiyaan /Self-Reliant India campaign on May 14, 2020. Under the self-reliant India campaign, all those who have accepted Shishu loans under the Pradhan Mantri Mudra Yojana received a 2% interest subsidy for a period of 12 months.

PMMY: Contact information

For any queries regarding PMMY, email 

Copyright belongs to:

Debora Berti

Università degli Studi di Firenze, IT

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