Avail Pradhan Mantri Mudra Yojna To Start Your Own Business

If you are in a shortage of funds while investing in your business, Pradhan Mantri Mudra Yojana (PMMY) is one of the first options for you. It is a flagship scheme of the government of India.

The PMMY scheme facilitates micro credit or loan up to Rs. 10 lakh to income generating micro enterprises engaged in the non farm sector in manufacturing, processing, trading or service sector. The scheme also supports Financial Intermediaries to extend loans to the non-corporate business houses and non-farm sector income generating activities of micro and small entities.

You can avail loans under MUDRA scheme only through banks and lending institutions such as:

  • Public Sector Banks
  • Private Sector Banks
  • State operated cooperative banks
  • Rural banks from regional sector
  • Institutions offering micro finance, and
  • Financial companies other than banks.

There are mainly three types of Mudra loan

  • Shishu: Covering loans up to Rs. 50,000/-
  • Kishor: Covering loans from Rs. 50,001 to Rs. 5,00,000/-
  • Tarun: Covering loans from Rs. 5,00,001 to Rs. 10,00,000/-


Eligible borrowers for the Pradhan Mantri Mudra Yojna can be

  • Individuals
  • Proprietary concern.
  • Partnership Firm.
  • Private Ltd. Company.
  • Public Company.
  • Any other legal forms.

Required Documents

  • ID Proof
  • Address Proof
  • Passport size photograph
  • Applicant Signature
  • Proof of Identity / Address of Business Enterprises
  • Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
  • Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
  • Sales achieved during the current financial year up to the date of submission of application.
  • Project report (for the proposed project) containing details of technical & economic viability.

How to apply for PPMY

While applying for the Mudra loan online, you can follow these steps:-

  • Go to PM MUDRA official website (https://www.mudra.org.in/)after that we select the Udyamitra portal – https://udyamimitra.in/.
  • tap on Mudra loan ‘Apply Now’.
  • Select one of the following: New entrepreneur/ Existing Entrepreneur/ Self employed professional.
  • Then, Fill the name of the applicant, email and Mobile number and Generate OTP.
  • After Successful Registration, Fill Personal Details and Professional Details.
  • Select hand holding agencies if any help is required to prepare project proposal etc. Or else, tap on ‘Loan Application Center’ and ‘Apply Now’.
  • Then, select the category of the loan required – Mudra Sishu/ Mudra Kishore/or Mudra Tarun etc.
  • The applicant then needs to fill the Business Information like business name, Business Activity etc. and select Industry type like Manufacturing, service, Trading, Agricultural allied.
  • Fill Other Information like the director’s Details, Banking/ Credit facilities, Credit facilities Proposed, Future estimates and Preferred Lander.
  • Attach all required documents such as ID proof, Address proof, Applicant’s photo, Applicant’s Signature, Proof of Identity/ Address of Business Enterprise etc.
  • Once the application form is submitted, an Application Number gets generated which the applicant needs to keep for any future reference.

Processing charges

You may be asked to pay some Processing fees, as per the internal guidelines of the bank, in which you have applied for Mudra loan. However, the upfront fee or processing charges for Shishu loans (Covering loans upto Rs. 50,000/-) are waived off by most banks.


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