PM Mudra Loan Scheme (PMMY) 2025
To provide affordable credit to non-agricultural sector MSMEs, the Government of India has introduced a new loan scheme, kindly known as Pradhan Mantri Mudra Yojana 2025, for small and medium enterprises in the country. Under this scheme, the government provides financial access to disadvantaged and unbanked sections of society, especially in small and micro enterprises. By offering this scheme government aims to bridge the gap between the millions of micro and small enterprises’ contribution to economic growth and social development. If you’re a resident or a small and medium enterprise as a profession and wish to avail the benefits of this scheme by applying for the same online, then continue reading this article for learning more about this scheme, such as eligibility, documents required, online application, and more.
About Pradhan Mantri Mudra Yojana
The “Pradhan Mantri Mudra Yojana” is a type of collateral-free loan scheme designed by the Government of India for small and medium enterprises. Under this scheme, the government provides loans up to Rs. 1 million to those medium and small enterprises that engage in construction, processing, trading, or service activities. By offering this scheme government aims to bridge the gap between the millions of micro and small enterprises’ contribution to economic growth and social development. These collateral-free loans do not require any upfront charges or processing fees and can be used for hub of purposes such as the purchase of machinery, working capital, raw materials, equipment, etc. Through the help of this scheme government aims to support those MSMEs who may face hardships in getting formal credit from banks and financial institutions due to a lack of collateral documentation or credit history.
Purpose of Pradhan Mantri Mudra Yojana
The primary purpose of PMMY is to provide collateral-free loans to medium and small enterprises through banks and financial institutions so that they are able to use them for various purposes, including the purchase of machinery, working capital, raw materials, equipment, etc. By offering this scheme government aims to bridge the gap between the millions of micro and small enterprises’ contribution to economic growth and social development.
Key Highlights of Pradhan Mantri Mudra Yojana 2025
| Name of the Scheme | Pradhan Mantri Mudra Yojana |
| Launched By | Government of India. |
| Year | 2025-26 |
| Objective | To provide collateral-free loans to medium and small enterprises through banks and financial institutions so that they can use them for various purposes, including the purchase of machinery, working capital, raw materials, equipment, etc. |
| Types of PMMY Loans | Shishu (up-toRs.50,000), Kishor (Rs. 50,001 to Rs. 5 lakh), and Tarun (Rs. 5 lakh to Rs. 20 lakh). |
| Financial Benefits | Receive loans from Rs 50,000 to Rs 20 lakh. |
| Special Support | Micro & Small Enterprises MSMEs. |
| Method of Loan Receipt | Through various channels such as public sector banks, private sector banks, regional rural banks, microfinance institutions, non-banking financial companies, and cooperative banks. |
| Beneficiaries | Citizens of India. |
| Mode | Online |
| Official Link | www.mudra.org.in |
Types of PMMY Loans Scheme
Based on the level of business and the loan amount, PMMY loans are divided into three categories these are as listed below:-
- Shishu Loans:- Under this type of loan, the government provides a loan up to Rs 50,000 to those enterprises that wish to start a new business.
- Kishor Loans:- Under this PMMY, Kishor offers a loan ranging from Rs 50,000 to Rs 5 lakhs to those enterprises who looking for additional funds to expand their business outcomes.
- Tarun Loans:- Under this type of loan government provides loans from Rs 5 lakh to Rs 20 lakh to selected beneficiaries, enabling them to enhance and scale up their businesses.
Eligibility Criteria
To be eligible for PMMY, an applicant needs to meet the following eligibility criteria These are as given below:-
- Applicant must be a permanent resident of India.
- Applicant must not be a defaulter of any bank or financial institution.
- Applicant must have a satisfactory credit track record.
- Applicant must have the necessary skills, experience, or knowledge required to perform the proposed activity.
- Applicant must have their bank account linked with an Aadhaar Card.
Exclusion Criteria
- Applicant is not a permanent resident of India.
- An applicant who is a defaulter of any bank or financial institution.
- Applicant doesn’t have a satisfactory credit track record.
- Applicant doesn’t have the necessary skills, experience, or knowledge required to perform the proposed activity.
- Applicant does not have their bank account linked with an Aadhaar Card.
Benefits of PMMY
- Affordable Credit:- Under this scheme government provides an affordable credit option to all sectors, but especially to those medium and small Enterprises who are engaged in the non-farm sector.
- Bridge Gap:- By offering this scheme government aims to bridge the gap between the millions of micro and small enterprises’ contribution to economic growth and social development.
- Types of Loans Covered:- Under this scheme, there are three types of loans covered by the government for MSMEs, such as Tarun Kishore and Shishu.
- Promote Financial Discipline & Strengthen Trust:- Through the help of this scheme government aims to promote financial discipline and strengthen trust among lenders and borrowers
- Special Support:- This scheme covers all sectors, but special support is given to micro and small Enterprises MSMEs.
Required Documents
- Aadhaar Card
- Resident Proof
- Bank Details
- Caste Certificate
- MSMEs Registration (if available)
- Income Certificate
- Passport-Sized Photograph
- Phone Number
Salient Features
- Collateral Free Loans:- Under this PMMY, loans are collateral-free and do not require any processing fee or upfront charges.
- Reasonable Internet Rates: Under this scheme government provides loans at a reasonable interest rate based on the policy of the lenders
- Method of Loan Taken:- Under this scheme government provides loans through various channels such as public sector banks, private sector banks, regional rural banks, microfinance institutions, non-banking financial companies, cooperative banks, etc.
- Create Job Options:- By offering this scheme government aims to encourage workers towards self-employment and create a hub of job opportunities by funding small businesses and entrepreneurial ventures for them.
- Decrease Dependence on Informal Credit:- By offering this scheme government aims to minimize reliance on informal credit sources by offering affordable and accessible formal credit options to small and medium enterprises.
Apply Online for Pradhan Mantri Mudra Yojana 2025
To apply online for PMMY, the applicant must have to follow these steps:-
Step 1: First of all, the applicant needs to visit the official PMMY or Udyamitra website.
Step 2: Once the applicant reaches the home page of the official website, they need to click on the Apply Now option. Before the online, you need to download the PMMY Loan Scheme Guidelines PDF and read it carefully.
Step 3: As the applicant clicks, a list of loans will appear on the screen.
Step 4: Now the applicant needs to select any of the three categories of loans mentioned (Shishu, Tarun, and Kishore).
Step 5: After selecting, the applicant needs to enter all the ask details such as Name, Address, Mobile number, Email ID, Aadhar Number, PAN Card Number, etc in the given space.
Step 6: Upload all the necessary documents with the form.
Step 7: Once quickly reviewed all the details carefully before submitting.
Step 8: At last, click on the Submit button to complete the process.
Step 9: After submitting the form successfully applicant needs to note down the reference number for future use.
By performing these steps applicant can easily apply for Pradhan Mantri Mudra Yojana 2025 Online.
Also Read: Pradhan Mantri Awas Yojana
Contact Details
National Toll-Free Number:- 1800 180 1111, 1800 11 0001
FAQs
- Who launched the Pradhan Mantri Mudra Yojana 2025?
The Government of India has launched the Pradhan Mantri Mudra Yojana 2025.
- Can only residents of India apply for Pradhan Mantri Mudra Yojana 2025?
Yes, only residents of India can apply for the Pradhan Mantri Mudra Yojana 2025 to receive loans.
- How many types of Loans are covered under Pradhan Mantri Mudra Yojana 2025?
Under this scheme, there are three types of loans covered by the government for MSMEs, such as Tarun Kishore and Shishu.