PM Mudra Yojana (PMMY) {प्रधानमंत्री मुद्रा योजना}

The Pradhan Mantri Mudra Yojana (PMYY) was launched to enable last-mile financing until lending credit to all types of small business and shops in India. The MUDRA – Micro Units Development and Refinance Agency bank was formed to provide low rate loans by the micro financiers as per this scheme.

The scheme was launched in April 2015 by the PM. As per the scheme, the Mudra Yojana is aiming at providing MFI (microfinance institutions), NBFC (Non- Banking financial institutions), Small Finance Banks, commercial banks and other co-operative banks to offer low-interest rate loans to small firms and retail shops in India.


The vision of the PM Mudra Yojana is to provide integrated financial and support services exceeding excellence in line with global best practices and standards for the bottom line of the business environment then helping them in their economic and social development.

Scheme eligibility

To apply for the PM Mudra Scheme, the applicant should fulfil the following eligibility requirements.

1. The applicant should be an applicant of India

2. The loan to be availed for shall be applicable for following sectors:

  • Manufacturing
  • Processing
  • Trade
  • Service Sector
  • Or any other fields other than Farming where the credit requirement is less than 10 Lakhs

The applicant applying for the scheme has to the option to approach an MFI, NBFC, Co-operative or Scheduled Banks or apply online at MUDRA website.

Different types of PMMY Loans

The Pradhan Mantri Mudra Yojana (PMMY) has three loan types of funding the requirements of the applicants

Name of the type of the loan

Coverage of the loan




Above Rs.50,000upto Rs.5,00,000


Above Rs.5,00,000 upto Rs.10,00,000

Sectors covered under the scheme

To maximise the reach of the scheme to the maximum population of India and to tailor products as per the requirements of the business environment in India, sector-specific activities are defined under each type of profession which can avail the loans.



Types of activities under the sector

Transport Sector (Land based )

Loans for purchasing the new vehicles for transport. It can be used both for good transport and personal transport

Autorickshaws(both conventional and electric), taxis ( passenger ), small goods transport vehicles and other types of three wheelers

Service Sector

The scope of this sector includes community services, social services and personal services

Hair and beauty salons, tailor stores, dry cleaning services, gymnasiums, medical shops, garage and repair shops, photocopying shops, courier agencies etc.

Food product services

Supporting small scale food industries

All types of small scale food manufacturing units, sweet shops, small service food shops, catering service, micro cold storage units, bakeries and baked products manufacturing

Textile sector

Micro textile sector producing garment and non-garment products

Handloom and power loom industry, embroidery works industry, garment stitching (mechanized or computerized ), automobile and furnishing accessories etc.

Achievements under PM Mudra Yojana in 2019-20

Financial Year: 2019-2020

No of PMYY loans sanctioned: 62237981

Amount sanctioned: Rs. 337465.13 Crore

Amount disbursed: Rs. 329684.63 Crore

Frequently Asked Questions

Q. What's the official website for PM Mudra Yojana?

You can learn more about this scheme on its official website:

Q. What is the interest rate for loans charged under MUDRA?

MUDRA being a refinance agency shall extend the funds to last-mile beneficiaries for the social and economic development of the sector and the business. The interest rate of the loan provided under the scheme will be done on a case to case basis and the repayment capacity of the repayer. It is an innovative financing scheme which aims at bringing down the overall cost of funding for the applicant.

Q. I am a recent graduate and want to start my own business. Can I avail loans under the MUDRA scheme?

 Ans. Yes, there is no specific limit or eligibility requirement as regards to the educational qualifications of the applicant. The loans can be availed under three types, i.e. Shishu, Kishor and Tarun category as per the limits defined.

Q. What is MUDRA Card?

MUDRA Card is an innovative credit card which can be used by the borrower for withdrawing working capital. Since MUDRA card is RuPay debit card, it can be used for withdrawing cash from ATM or making a purchase using Point of Sale (POS) machines.

Q. Are IT returns mandatory for applying and availing MUDRA loans?

Ans. IT returns need not be submitted for availing such a small amount of loans. However, the documents to be submitted shall be at the discretion of the lending institutions based on their internal guidelines and policies.

Q. Is PAN Card mandatory for availing MUDRA loans?

Ans. PAN Card is not compulsory for availing MUDRA loans. However, the applicant has to satisfy the KYC requirements as mandated by the lending institutions.