Pradhan Mantri Mudra Yojana


Pradhan Mantri Mudra Yojana

Mudra loans are designed to bring enterprises into the formal financial system, or to “fund the unfunded”. Loans under PMMY scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading, and services. Enterprises involved in allied agricultural activities can also apply for Mudra loans.

Pradhan Mantri Mudra Yojana Benefits

  1. Micro and small enterprises:- The Mudra loan scheme offers credit facilities to micro and small enterprises engaged in income generation.
  2. No security or collateral required:- One of the key benefits of a Mudra loan are that borrowers are not required to provide security or collateral. Additionally, there are no processing charges on Mudra loans.
  3. Credit for various requirements:- The credit facilities extended under the PMMY can be for any type of fund or non-fund based requirements. Hence, borrowers can use the Mudra loan scheme for a variety of purposes. The credit from Mudra loans can be used for term loans and overdraft facilities, or to apply for letters of credit and bank guarantees.
  4. No minimum limit:- There is no minimum loan amount for Mudra loans.

Pradhan Mantri Mudra Yojana Features 

  1. There are three types of Mudra loans depending on the loan amount:
    1. Shishu: Loans sanctioned under the PMMY scheme up to Rs.50000
    2. Kishore: Loans sanctioned under the PMMY scheme from Rs.50,001 up to Rs.5.00 lakh
    3. Tarun: Loans sanctioned under the PMMY scheme Rs.5,00,001 up to Rs.10.00 lakh
  2. Maximun ypto 10 Lakh:- While there is no minimum loan amount under the Mudra loan scheme, the maximum loan the amount that can be taken under the PMMY is Rs.10 lakh.
  3. No processing charges or collateral :-  Borrowers don’t need to pay processing charges or offer collateral if they avail a Mudra loan.
  4. Loan for various  enterprises :- As per the PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can include those engaged in allied agricultural activities, such as horticulture and fisheries.
  5. MCLR rate:- The interest rate on Mudra loans is determined by the Marginal Cost of Lending Rate or MCLR, which is calculated according to the RBI guidelines.

Pradhan Mantri Mudra Yojana Eligibility

  1. All “Non-farm enterprises”.
  2. Under “Micro Enterprises” and “Small Enterprises” segment.
  3. Engaged in “income-generating activities”.
  4. Engaged in “manufacturing, trading and services” and
  5. Whose “credit needs are up to Rs.10.00 lacs”
  6. Now allied agriculture activities have also been included under PMMY scheme w.e.f. 01.04.2016.

Interest Rates and Charges


Micro Enterprises

Small Enterprises

Up to Rs.50000/-



Above Rs.50000/- to Rs.2.00 lacs



Above Rs.2.00 lacs to Rs.10.00 lacs



Processing Charges: Nil


Interest Rate

Processing Fee

Loan Amount



10.99% to 20.70%

Up to 1.5%

Maximum INR 15 lakhs

1 to 5 years


10.99% to 17.99%


Maximum INR 20 lakhs

1 to 5 years

Oriental Bank of Commerce

10.65% to 11.65%


INR 50,000 to INR 10 lakhs

1 to 5 years



You can also go through other Government Schemes launched in recent times by BJP Government which would be very helpful for the preparation for UPSC, State PCS and other Government Exams:-

  1. Swachh Bharat Abhiyan
  2. Pradhan Mantri Suraksha Bima Yojana
  3. Pradhan Mantri Jeevan Jyoti Bima Yojana
  4. Pradhan Mantri Jan Dhan Yojana (PMJDY)
  5. Pradhan Mantri Adarsh Gram Yojana
  6. Make in India
  7. Deen Dayal Upadhyaya Gram Jyoti Yojana
  8. Atal Pension Yojana
  9. Jal Shakti Abhiyan
  10. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 
  11. Udaan Scheme 
  12. Digital India
  13. Skill India
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