Pradhan Mantri Mudra Yojana (PMMY): Apply Online, Loan Amount, Interest Rate, Loan Limit, Eligibility & Documents Required

Want to start a small business or expand your existing enterprise with financial support? Pradhan Mantri Mudra Yojana (PMMY) is a flagship Government of India scheme that provides collateral-free business loans to eligible non-corporate, non-farm micro and small enterprises. Launched on 8 April 2015, the scheme aims to promote entrepreneurship by helping businesses access institutional credit for working capital, machinery, equipment, and business expansion.

It is one of the key Indian Government Online Services supporting aspiring entrepreneurs and small businesses across the country.

Mudra loans are available through Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). Depending on the funding requirement and business stage, borrowers can apply under Shishu, Kishore, Tarun, or Tarun Plus categories.

In this guide, you'll learn how to apply online for a Pradhan Mantri Mudra Yojana loan, download the application form, check the loan limit, eligibility, interest rate, required documents, and other important details.

Pradhan Mantri Mudra Yojana (PMMY) Overview

Particular	Details
Scheme Name	Pradhan Mantri Mudra Yojana (PMMY)
Launch Date	8 April 2015
Launched By	Government of India
Objective	Provide collateral-free business loans to eligible micro and small enterprises
Loan Categories	Shishu, Kishore, Tarun & Tarun Plus
Maximum Loan Amount	Up to ₹20 lakh
Application Mode	Online & Offline
Collateral	Not required
Beneficiaries	Non-corporate, non-farm micro and small enterprises
Official Website	https://www.mudra.org.in/

What is Pradhan Mantri Mudra Yojana (PMMY)?

Pradhan Mantri Mudra Yojana (PMMY) is a government-backed credit scheme that supports small entrepreneurs by providing business loans without collateral. The scheme is designed for businesses engaged in manufacturing, trading, services, food processing, transport, retail, and other eligible non-farm activities.

The loan can be used for starting a new business, expanding an existing business, purchasing machinery or equipment, meeting working capital needs, upgrading technology, or improving business infrastructure.

Pradhan Mantri Mudra Yojana Loan Apply Online

Eligible applicants can apply online through multiple official platforms depending on their preference and the participating lender.

1. JanSamarth Portal

The JanSamarth Portal is the Government of India's integrated platform for credit-linked schemes. Eligible applicants can check their eligibility, complete the online application, upload documents, and track the loan application.

Apply Online for PMMY under Business Activity Loan (Schemes section) through the official website: https://www.jansamarth.in/home

2. PSB Loans in 59 Minutes

Applicants who wish to apply for business loans from participating Public Sector Banks can also use the PSB Loans in 59 Minutes portal. The platform provides digital processing and facilitates in-principle approval, subject to the bank's verification and eligibility criteria.

Apply Online for Pradhan Mantri Mudra Yojana through the PSB Loans in 59 minutes official website: https://www.psbloansin59minutes.com/home

3. Direct Bank Portals

Many participating banks also accept PM Mudra loan applications through their:

Official websites
Internet banking portals
Mobile banking applications
Bank branches

Applicants can visit their preferred bank to check the availability of online Mudra loan applications.

How to Apply Offline for Pradhan Mantri Mudra Yojana

Applicants who prefer the offline mode can apply through any participating Commercial Bank, Regional Rural Bank (RRB), Small Finance Bank, NBFC, or Micro Finance Institution (MFI).

Steps to Apply Offline

Download the appropriate PM Mudra Loan application form from the PMMY Bankers Kit.
Fill in the application form with accurate personal and business details.
Attach all the required supporting documents.
Visit your preferred bank branch or lending institution.
Submit the completed application.
The lender will verify your documents, assess your business proposal, and process the loan application.

Applicants may find the process easier if they apply through a bank where they already maintain a savings or current account.

PM Mudra Loan Application Form PDF Download

The official PMMY Bankers Kit contains application forms for different loan categories and related notifications.

PMMY Bankers Kit

Direct Link to access PMMY Bankers Kits: https://www.mudra.org.in/Home/PMMYBankersKit

Shishu Loan Application Form (Up to ₹50,000)

Applicants seeking a Shishu Loan can download the official application form here:
https://www.mudra.org.in/Default/DownloadFile/Application_Form_for_Shishu.pdf

Upon clicking the link, the PMMY Shishu Loan application form will get downloaded on your PC/laptop/smartphone which will appear as shown below:

Kishore & Tarun Loan Application Form (₹50,001 to ₹10 Lakh)

A common application form is available for both Kishore and Tarun loan categories. Download from here: https://www.mudra.org.in/Default/DownloadFile/Common_loan_Application_form.pdf

Upon clicking the link, the Kishore and Tarun Loan Application Form will get downloaded which will appear as shown below:

The downloaded application form should be completed carefully and submitted to the selected lending institution along with the required documents.

Tarun Plus Gazette Notification PDF

Eligible borrowers applying under the Tarun Plus category can refer to the official Gazette Notification.

Download Tarun Plus Gazette Notification PDF from here:
https://www.mudra.org.in/Default/DownloadFile/GazetteNotificationforTarunPlus.pdf

Pradhan Mantri Mudra Yojana Loan Categories

Pradhan Mantri Mudra Yojana (PMMY) offers four loan categories based on the stage of the business and its funding requirements.

Category	Loan Amount	Best Suited For
Shishu	Up to ₹50,000	New businesses and first-time entrepreneurs
Kishore	₹50,001 to ₹5 lakh	Existing businesses looking to grow
Tarun	₹5 lakh to ₹10 lakh	Business expansion and scaling
Tarun Plus	₹10 lakh to ₹20 lakh	Existing Tarun borrowers with successful repayment history

The Tarun Plus category was introduced following the Union Budget 2024 announcement to help successful entrepreneurs access higher credit after repaying their earlier Tarun loan.

Pradhan Mantri Mudra Yojana Loan Amount & Loan Limit

The maximum loan amount available under PMMY is ₹20 lakh. The loan amount sanctioned depends on:

Nature of the business
Funding requirement
Business viability
Applicant's repayment capacity
Credit assessment by the lending institution

Eligible borrowers can use the loan for starting a new business or expanding an existing enterprise.

Eligibility Criteria for Pradhan Mantri Mudra Yojana

PMMY is available to non-corporate, non-farm micro and small enterprises engaged in income-generating activities. Eligible applicants generally include:

Individual entrepreneurs
Proprietorship firms
Partnership firms
Small manufacturers
Shopkeepers and retailers
Service providers
Food processing units
Tailoring units
Beauty parlours and salons
Repair workshops
Artisans and craftsmen
Transport operators
Existing micro and small enterprises

The applicant must satisfy the eligibility criteria and credit assessment prescribed by the selected lender.

Who Cannot Apply Under PMMY?

Although PMMY covers a wide range of business activities, it is generally not meant for:

Personal or household expenses
Speculative or investment activities
Pure agricultural crop cultivation
Applicants who do not meet the lender's eligibility norms
Willful defaulters of banks or financial institutions

Loan approval ultimately depends on the lending institution's assessment.

Business Activities Covered Under PMMY

Mudra loans can be used for several eligible business purposes, including:

Starting a new business
Business expansion
Purchase of plant and machinery
Purchase of equipment
Working capital requirements
Purchase of raw materials
Infrastructure development
Technology upgradation
Scaling business operations
Product or service expansion
Business diversification

The loan should be used only for approved business activities and not for personal consumption.

Types of PM Mudra Loans

Depending on the business requirement, participating lenders may sanction the loan as a Term Loan or a Working Capital Loan.

1. Term Loan

A Term Loan is suitable for long-term investments such as:

Purchase of machinery
Purchase of commercial equipment
Setting up a new business
Business expansion
Infrastructure development
Technology upgrades

2. Working Capital Loan

A Working Capital Loan helps businesses manage their day-to-day operating expenses and maintain smooth cash flow. It can be used for:

Purchase of raw materials
Inventory management
Salary payments
Utility expenses
Operational costs
Day-to-day business requirements

Banks Offering Pradhan Mantri Mudra Yojana Loans

Mudra loans are available through a wide network of participating financial institutions across India, including:

Public Sector Banks
Private Sector Banks
Regional Rural Banks (RRBs)
Small Finance Banks
Non-Banking Financial Companies (NBFCs)
Micro Finance Institutions (MFIs)

Some leading banks offering PM Mudra loans include:

State Bank of India (SBI)
Punjab National Bank (PNB)
Bank of Baroda
Canara Bank
Union Bank of India
Indian Bank
Bank of India
UCO Bank
Punjab & Sind Bank
Central Bank of India
Indian Overseas Bank
HDFC Bank
ICICI Bank
Axis Bank

Applicants should compare the interest rates, repayment options, and eligibility criteria of different lenders before applying for a loan.

Tips to Improve Your Chances of Loan Approval

While the final decision rests with the lending institution, the following steps may improve your chances of approval:

Submit a complete and accurate application form.
Prepare a clear business plan or project report.
Keep Aadhaar, PAN, and business documents ready.
Maintain a satisfactory banking and repayment history.
Apply for a loan amount that matches your business requirement.
Ensure all supporting documents are genuine and up to date.
Respond promptly if the lender requests additional information.

A well-prepared application helps the lender assess your business proposal more efficiently and may reduce processing delays.

Pradhan Mantri Mudra Yojana Interest Rate

One of the most common questions applicants ask is about the Pradhan Mantri Mudra Yojana interest rate. PMMY does not prescribe a fixed interest rate for all borrowers. Instead, the interest rate is decided by the participating bank or financial institution based on:

Loan category and amount
Applicant's credit profile
Nature of the business
Repayment capacity
Internal lending policy of the bank
Applicable RBI guidelines

As interest rates vary from one lender to another, applicants should compare the loan terms offered by different banks before applying.

Documents Required for Pradhan Mantri Mudra Yojana Loan

The exact documents may vary depending on the lender and loan amount. However, applicants are generally required to submit the following:

Basic Documents Required for PM Mudra Yojana

Aadhaar Card
PAN Card
Address proof
Recent passport-size photographs
Business address proof
Business registration certificate (if applicable)
Quotation for machinery or equipment (if applicable)
Bank account statement
Udyam Registration (if applicable)
GST Registration (if applicable)
Category certificate (SC/ST/OBC/Minority), if applicable

Additional Documents for Higher Loan Amounts

For larger business loans, lenders may also ask for:

Sales and GST details for the last 12 months (where applicable)
Income Tax Returns (ITR) for at least one financial year
Bank statements for the last six months
Business plan or project report
Details of loan requirement and fund utilisation
Financial statements of the business (if applicable)

Applicants should verify the document checklist with the selected bank or financial institution before submitting the application.

Mudra Loan Repayment Period

The repayment tenure under PMMY is determined by the lending institution based on the loan type and business requirements. Generally:

Repayment tenure may extend up to 5 years.
EMI amount is decided by the lender.
Timely repayment helps build a good credit history.
Entrepreneurs who successfully repay a Tarun loan may become eligible for a Tarun Plus loan of up to ₹20 lakh, subject to the lender's assessment.

Features & Benefits of Pradhan Mantri Mudra Yojana

PMMY offers several benefits to eligible entrepreneurs and small businesses, including:

Collateral-free business loans.
Loan amount ranging from ₹50,000 to ₹20 lakh depending on the category.
Available for both new and existing businesses.
Supports manufacturing, trading, services, transport, food processing, and other eligible non-farm activities.
Flexible repayment tenure as determined by the lender.
Business loans for machinery, equipment, working capital, technology upgrades, and expansion.
Available through Commercial Banks, RRBs, Small Finance Banks, NBFCs, and MFIs.
Encourages self-employment and entrepreneurship in both rural and urban areas.
Special focus on supporting micro and small enterprises.

Important Points to Remember for PMMY

Before applying for a Mudra loan, keep these points in mind:

PMMY loans are meant only for eligible business purposes.
Loan approval depends on the lender's eligibility criteria and credit assessment.
Applicants should not be wilful defaulters of any bank or financial institution.
There are no authorised agents or middlemen for obtaining Mudra loans.
Do not pay anyone claiming to guarantee loan approval.
Banks may request additional documents depending on the business activity and loan amount.

Pradhan Mantri Mudra Yojana Progress Report

Since its launch in April 2015, PMMY has supported millions of entrepreneurs across India by providing institutional credit to micro and small businesses.

Financial Year	Loans Sanctioned	Amount Sanctioned	Amount Disbursed
2022-23	6.23 crore	₹4.57 lakh crore	₹4.50 lakh crore
2023-24	6.68 crore	₹5.41 lakh crore	₹5.32 lakh crore
2024-25	5.47 crore	₹5.53 lakh crore	₹5.42 lakh crore
2025-26	5.00 crore	₹6.14 lakh crore	₹6.05 lakh crore
2026-27*	1.11 crore	₹1.51 lakh crore	₹1.45 lakh crore

*Data updated up to 17 July 2026.

Important Links Related to Pradhan Mantri Mudra Yojana

Resource	Official Link
PMMY Official Website	https://www.mudra.org.in/
JanSamarth Portal	https://www.jansamarth.in/home
PSB Loans in 59 Minutes	https://www.psbloansin59minutes.com/home
PMMY Bankers Kit	https://www.mudra.org.in/Home/PMMYBankersKit
Shishu Loan Application Form PDF	https://www.mudra.org.in/Default/DownloadFile/Application_Form_for_Shishu.pdf
Kishore & Tarun Loan Application Form PDF	https://www.mudra.org.in/Default/DownloadFile/Common_loan_Application_form.pdf
Tarun Plus Gazette Notification	https://www.mudra.org.in/Default/DownloadFile/GazetteNotificationforTarunPlus.pdf

Frequently Asked Questions (FAQs) on Mudra Loan

Q1. What is Pradhan Mantri Mudra Yojana (PMMY)?
Pradhan Mantri Mudra Yojana (PMMY) is a Government of India scheme that provides collateral-free business loans to eligible non-corporate, non-farm micro and small enterprises.

Q2. How can I apply online for a PM Mudra loan?
You can apply online through the JanSamarth Portal, PSB Loans in 59 Minutes, or the official online portal of a participating bank.

Q3. What is the maximum loan amount available under PMMY?
The maximum loan amount is ₹20 lakh under the Tarun Plus category for eligible borrowers who have successfully repaid an earlier Tarun loan.

Q4. Is collateral required for a Mudra loan?
Generally, no collateral or third-party security is required for loans sanctioned under PMMY, subject to the lending institution's policies.

Q5. What is the interest rate under Pradhan Mantri Mudra Yojana?
There is no fixed interest rate under PMMY. The applicable rate is determined by the participating bank or financial institution.

Q6. What documents are required for a PM Mudra loan?
Applicants generally need identity proof, address proof, PAN Card, photographs, business-related documents, bank statements, and any additional documents requested by the lender.

Q7. Can I use a Mudra loan for working capital?
Yes. Mudra loans can be used for working capital, purchasing machinery, buying equipment, business expansion, technology upgrades, and other eligible business purposes.

Q8. Can new businesses apply for PMMY?
Yes. Both new and existing eligible micro and small enterprises can apply under the appropriate PMMY loan category.

Q9. Which banks provide Mudra loans?
PMMY loans are offered by Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs), including major public and private sector banks.

Q10. Where can I download the PM Mudra Loan application form?
You can download the official Shishu, Kishore & Tarun application forms and the Tarun Plus Gazette Notification from the PMMY Bankers Kit available on the official MUDRA website.

Conclusion

Pradhan Mantri Mudra Yojana (PMMY) has become one of India's leading initiatives for promoting entrepreneurship by providing collateral-free business loans to micro and small enterprises. Whether you are planning to start a new venture, purchase machinery, manage working capital, or expand an existing business, PMMY offers flexible financing options through Shishu, Kishore, Tarun, and Tarun Plus loan categories.

Before applying, compare the loan terms offered by different lenders, prepare the required documents, and choose the application method that best suits your needs - JanSamarth Portal, PSB Loans in 59 Minutes, direct bank portals, or offline through a participating bank branch. Referring to the official resources and submitting a complete application can help ensure a smoother loan application process.