Pradhan Mantri Mudra Yojana (PMMY): A Complete Guide
Introduction to Pradhan Mantri Mudra Yojana (PMMY)
Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by the Government of India on April 8, 2015, to provide financial assistance to small and micro-enterprises. Under this scheme, entrepreneurs and small business owners can avail collateral-free loans from banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). The objective of PMMY is to promote self-employment, entrepreneurship, and economic growth by offering easy access to credit.
Types of Loans under Pradhan Mantri Mudra Yojana
PMMY offers three types of loans categorized based on the funding requirements of businesses:
1. Shishu Loan
- Loan Amount: Up to ₹50,000
- Suitable For: Startups and micro-enterprises in the initial stage.
- Best For: Small retailers, artisans, shopkeepers, and service providers.
2. Kishor Loan
- Loan Amount: ₹50,000 to ₹5 lakh
- Suitable For: Businesses looking to expand or invest in machinery, tools, and working capital.
- Best For: Small businesses, manufacturers, traders, and service sector businesses.
3. Tarun Loan
- Loan Amount: ₹5 lakh to ₹10 lakh
- Suitable For: Well-established businesses requiring significant investment for expansion.
- Best For: Medium-scale businesses and enterprises planning large-scale growth.
4. Tarun Plus
- Loan Amount : 10 lakh to 20 lakh
- Candidates who have previously taken loan and paid back on time are eligible.
Eligibility Criteria for PM Mudra Yojana
To apply for a Mudra loan, applicants must meet the following criteria:
- Age Limit: Minimum 18 years, Maximum 65 years.
- Business Type: Sole proprietors, partnership firms, MSMEs, traders, service providers, and manufacturers.
- Business Sector: Trading, manufacturing, services, agriculture-related activities, and self-employment ventures.
- Loan Purpose: Expansion, working capital, purchasing equipment, or starting a new business.
- CIBIL Score: While there is no strict requirement, a good credit score enhances approval chances.
Interest Rates for Mudra Loan
Interest rates for Mudra loans vary based on the lender and applicant’s profile. Generally, the rates are:
- Shishu Loan: 8% to 12% per annum
- Kishor Loan: 10% to 16% per annum
- Tarun Loan: 11% to 20% per annum
Note: Interest rates are subject to change based on RBI guidelines and lender policies.
Documents Required for PM Mudra Loan
Applicants need to submit the following documents:
- Identity Proof: Aadhaar Card, PAN Card, Voter ID, Passport
- Address Proof: Electricity bill, Passport, Ration Card, Rent Agreement
- Business Proof: Business registration certificate, Trade License, GST registration
- Bank Statements: Last 6 months’ bank statement
- Income Proof: Income Tax Returns (if applicable)
- Loan Application Form: Duly filled form with passport-size photographs
How to Apply for Mudra Loan?
You can apply for a Mudra Loan through both online and offline methods.
Online Application Process:
- Visit the official website of Mudra Yojana or the chosen bank/NBFC.
- Select the loan category (Shishu, Kishor, Tarun) based on your requirement.
- Fill in the loan application form with personal and business details.
- Upload the necessary documents and submit the application.
- Wait for the bank’s verification and approval process.
Offline Application Process:
- Visit any public or private sector bank, MFIs, or NBFCs participating in PMMY.
- Collect the Mudra Loan Application Form and fill in the details.
- Attach the required documents and submit them to the bank official.
- The bank will assess the application and disburse the loan upon approval.
List of Banks & NBFCs Offering Mudra Loans in India
Several financial institutions offer Mudra loans under PMMY. Some of the key banks and NBFCs include:
Public Sector Banks:
1 State Bank of India
2 State Bank of Bikaner & Jaipur
3 State Bank of Travancore
4 Bank of Baroda
5 Bank of India
6 Bank of Maharastra
7 Canara Bank
8 Corporation Bank
9 Dena Bank
10 IDBI Bank Ltd.
11 Indian Bank
12 Oriental Bank of Commerce
13 Punjab National Bank
14 Syndicate Bank
15 UCO Bank
16 Union Bank of India
17 Vijaya Bank
18 Allahabad Bank
19 Andhra Bank
20 Bhartiya Mahila Bank
21 Central Bank of India
22 Indian Overseas Bank
23 Punjab & Sind Bank
24 State Bank of Hyderabad.
25 State Bank of Mysore
26 State Bank of Patiala
27 United Bank of India
Private Sector Banks
1 Axis Bank Ltd.
2 Catholic Syrian Bank Ltd.
3 City Union Bank Ltd.
4 DCB Bank Ltd.
5 Federal Bank Ltd.
6 HDFC Bank Ltd.
7 ICICI Bank Ltd.
8 Indus Ind Bank Ltd.
9 Jammu & Kashmir Bank Ltd.
10 Karnataka Bank Ltd.
11 Karur Vysya Bank Ltd.
12 Kotak Mahindra Bank Ltd.
13 Nainital Bank Ltd.
14 South Indian Bank
15 Tamilnad Mercantile Bank Ltd.
16 The Ratnakar Bank Ltd.
17 Yes Bank Ltd.
18 IDFC Bank Ltd.
REGIONAL RURAL BANKS (RRBs)
1 Andhra Pragathi Grameena Bank
2 Chaitanya Godavari Grameena Bank
3 Deccan Grameena Bank
4 Saptagiri Grameena Bank
5 Bihar Gramin Bank
6 Madhya Bihar Gramin Bank
7 Uttar Bihar Gramin Bank
8 Baroda Gujarat Gramin Bank
9 Dena Gujarat Gramin Bank
10 Saurashtra Gramin Bank
11 Kaveri Grameena Bank
12 Karnataka Vikas Grameena Bank
13 Pragathi Krishna Gramin Bank
14 Kerala Gramin Bank.
15 Maharashtra Gramin Bank
16 Meghalaya Rural Bank
17 Puduvai Bharathiar Grama Bank
18 Malwa Gramin Bank
19 Punjab Gramin Bank
20 Sutlej Gramin Bank
21 Marudhara Gramin Bank
22 Pallavan Grama Bank.
23 Pandyan Grama Bank
24 Tripura Gramin Bank
25 Baroda Uttar Pradesh Gramin Bank
26 Prathama Gramin Bank
27 Sarva UP Gramin Bank
28 Narmada Jhabua Gramin Bank
29 Sarva Haryana Gramin Bank
30 Kaveri Grameena Bank
31 Baroda Rajasthan Kshetriya Gramin Bank
Co-operative Banks
32 Gujarat State Co-op Bank Ltd
33 Mehsana Urban Co-op Bank
34 Rajkot Nagarik Sahhakari Bank
35 Kalupur Commercial Co-op Bank
36 Bassein Catholic Co-op Bank
37 TJSB Sahakari Bank Ltd
38 Jalgaon Janata Sahakari Bank Ltd
39 Nutan Nagrik Sahakari Bank Ltd
40 Ahmedabad Mercantile Co-op Bank ltd
41 Surat People Co-op Bank ltd
42 Dombivali Nagari Sahakari Bank Ltd
43 Citizen Credit Co-op Bank Ltd
44 Tamil Nadu Apex State Co-op Bank Ltd
45 AP State Apex Co-op Bank Ltd.
Micro Finance Institutions (MFIs)
1 S V Creditline Pvt. Ltd. New Delhi
2 Margdarshak Financial Services Ltd. Uttar Pradesh
3 Madura Micro Finance Ltd. Tamil Nadu
4 ESAF Micro Finance & Investments P. Ltd Kerala
5 Fusion Micro Finance P. Ltd. New Delhi
6 Ujjivan Financial Services P. Ltd Karnataka
7 Future Financial Services Ltd. Karnataka
8 SKS Microfinance Ltd.- Telangana
9 Utkarsh Micro Finance P. Ltd Uttar Pradesh
10 Equitas Micro Finance Ltd Tamil Nadu
11 Sonata Finance Pvt. Ltd Uttar Pradesh
12 Saija Finance Private Ltd Bihar
13 Arth Micro Finance Pvt. Ltd. Rajasthan
14 Shikhar Microfinance Pvt. Ltd. New Delhi
15 Navachetana Microfin Services Pvt. Ltd Karnataka
16 Samasta Microfinance Ltd. Bangalore
17 Satin Credit Care Network Ltd- New Delhi
18 Sahyog Microfinance Ltd. Madhya Pradesh
19 Arohan Financial Services P. Ltd West Bengal
20 Suryodaya Microfinance Ltd Maharashtra
21 Belstar Investment & Finance P. Ltd Tamil Nadu
22 Jagaran Microfin P. Ltd West Bengal
23 Digamber Capfin Ltd Rajasthan
24 Midland Microfin Ltd. Punjab
25 RGVN (North East) Microfinance Ltd. Guwahati Assam
26 Grameen Development & Finance P. Ltd. Assam
27 Hindustan Microfinance Private Limited Maharashtra
28 Namra Finance Ltd Gujarat
29 Muthoot Fincorp Limited Kerala
30 Sambandh Finserve Pvt Ltd Bhuvaneshwar
31 IDF Financial Services Pvt Ltd Bangalore
32 Nightingale Finvest Pvt Ltd West Bengal
33 Asirvad Microfinance Private Limited Chennai
34 Village Financial Services Pvt Limited Kolkatta West Bengal
35 Janalakshmi Financial Services Pvt Ltd Bangalore
36 YVU Financial Services Private Ltd Guwahati
37 Disha Microfin Private Ltd Ahmedabad
38 SMILE Microfinance Limited Chennai
39 Light Micro Finance Ltd Ahmedabad
40 Uttarayan Financial Services Pvt Ltd Kolkatta West Bengal
41 Unacco Financial Services Private Limited Guhawati, Assam
42 Varam Capital Chennai
43 Vedika Credit Capital Ltd Ranchi
44 MSM Microfinance Limited Chennai
45 M Power Micro Finance Private Ltd Vadodara Gujarat
46 Navachetana Microfin Services Pvt. Ltd. Bangalore
47 Intrepid Finance and leasing Pvt. Ltd. mumbai
MFIS
1 Bhartiya Micro Credit (Sec 8 Company) Lucknow
2 Sakhi Samudaya Kosh (Sec 8 Company) Maharashtra
3 Cashpor Micro Credit (Sec 8 Company) Lucknow
4 CDOT ( MFI Registered as a Society under Indian
Societies Act)
Bihar
5 Mahana Foundation (MFI Registered as a Trust under
Trust Act 1882)
Orissa
6 IRCED (MFI Registered as a Society and Trust) Maharashtra
7 NEED Lucknow
8 Community Collective Society for Integrated
Develpoment (MFI Registered as a Society)
New Delhi
9 Swayam Micro Services(Sec 8 Company) Ahmedabad
10 Chanura Microfin Manipur Manipur
11 Humana People to People India New Delhi
12 Disha India Micro Credit (Sec 25 Company) Saharanpur
13 Annapurna Mahila Multistate Co-op Credit Society(Co-op
Society and MFI)
Pune
14 Prayas (Organisation for Sustainable Development) (MFI
Registered as a Society and Trust)
Ahmedabad
15 Dhosa Chandaneshwar Bratyajana Samity (DCBS)
(Society)
Kolkata
16 Seba Rahara (Society) Kolkata
17 Belghoria Janakalyan Samity (Society) Kolkata
18 Gram Bikash Kendra Kolkata
19 Shakti Mahila Sangh Bahu Uddeshya Sahkari Maryadit
(Society)
Jabalpur, MP
20 Mahasemam Trust (Society) Madurai, Tamilnadu
21 Sampurna Training and Entrepreneurship Programme
(STEP) (Section 25 Company)
Kolkata, West bengal
22 Life Foundation (MFI and Trust) Kerala
23 Sanghmitra Rural Financial Services (Sec 8) Mysore
24 Pahal Financial Services Pvt Ltd Ahmedabad
25 Blaze trust(MFI registered as trust) Coimbatore(Tamil Nadu)
26 Mahashakti Foundation (MFI Registered as a Trust under
Trust Act 1882)
OdishaJ
Mainline NBFCs
1 Reliance Capital Ltd.
2 Fullerton India Credit Co. Ltd.
3 Shriram Transport Finance Co. Ltd.
4 SREI Equipment Finance Ltd.
5 Magma Fincorp Ltd.
6 Religare Finvest Ltd.
7 Shriram City Union Finance Ltd.
8 Equitas Finance P. Ltd.
9 India Infoline Ltd.
10 ECL Finance Ltd.
11 AU Financiers India Ltd.
12 SE Investments Ltd.
13 Electronica Finance Ltd.
14 MAS Financial Services Ltd.
15 IKF Finance Ltd.
16 Intec Capital Ltd.
17 Sakthi Finance Ltd.
18 Esskay Auto Finance Ltd.
19 Bansal Credits Ltd.
20 Five Star Business Credits Ltd.
21 Indiabulls Financial Services Ltd.
22 Vistaar Financial Services P. Ltd.
23 Shriram Finance Corporation Pvt Ltd (SRFCL)
24 India Infoline Finance Ltd (IIFL)
25 Mahindra & Mahindra Financial Services Ltd
26 Pudhuaaru Financial Services Pvt Limited (PFSPL)
27 Nabard Financial Services Ltd (NABFINS)
28 Maanaveeya Development & Finance Private Ltd
29 Jumbo Finvest (India) Limited (JFIL)
30 Ananya Finance for Inclusive Growth Pvt. Ltd.
31 Capital First Limited(CFL)
Note : The above list is indicative and not exhaustive. The list is periodically revised as and when new
institutions are getting added.
1 PUBLIC SECTOR BANKS 27
2 Private Sector Banks 18
3 REGIONAL RURAL BANKS (RRBs) 31
4 Co-operative Banks 14
5 MFI-NBFC 47
6 MFI 26
7 NBFC 31
TOTAL 194
Benefits of Pradhan Mantri Mudra Yojana
- Collateral-Free Loan: No need to provide security or collateral.
- Flexible Repayment Tenure: Loan repayment period of up to 5 years.
- Financial Inclusion: Encourages small entrepreneurs and self-employed individuals.
- Easy Processing: Minimal paperwork and quick loan approval.
- Government-Backed: Loan backed by the Government of India ensures reliability and security.
- Boost to Startups & MSMEs: Supports new business ventures and enhances economic growth.
Conclusion
Pradhan Mantri Mudra Yojana (PMMY) is a significant initiative aimed at empowering small businesses, startups, and self-employed individuals. With its collateral-free loans, easy repayment options, and government backing, PMMY provides the necessary financial support to fuel entrepreneurial dreams. If you are a small business owner or planning to start your own venture, Mudra Loans can be your stepping stone to success.