Pradhan Mantri MUDRA Yojana (PMMY)

Financial Support for Small and Micro Enterprises

The Pradhan Mantri MUDRA Yojana (PMMY) was launched by the Government of India in 2015. The objective of this scheme is to provide collateral-free loans to small and micro enterprises.

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Objectives

To provide financial assistance to non-corporate, non-agricultural small/micro enterprises.
To promote self-employment and entrepreneurship.

Loan Categories

Shishu

Loan up to ₹50,000

For new businesses

Kishor

Loan from ₹50,001 to ₹5 lakh

For developing businesses

Tarun

Loan from ₹5 lakh to ₹10 lakh

For expansion of established businesses

Eligibility

Any Indian citizen, aged between 18 to 65 years.
Business plan should be in manufacturing, trade or service sector.

Features

Collateral-Free

This loan is provided without any collateral.

Financial Institutions

Available through banks, NBFCs, micro finance institutions, regional rural banks and cooperative banks.

Repayment Period

3 to 5 years (as per bank policy).

Interest Rate

Approximately 8% to 12% per annum.

MUDRA Card

MUDRA Card (similar to debit card) is issued which provides working capital.

Who Can Be Beneficiaries?

Small Shopkeepers

Street Vendors

Small Service Sector Businesses

Small Manufacturers

Artisans

Taxi/Truck Operators

Food Service Units