Pradhan Mantri Mudra Yojana (PMMY)

  • The  Prime Minister Shri Narendra Modi launched Pradhan Mantri Mudra Yojana (PMMY) on April 08, 2015 to provide formal access of financial facilities to Non –Corporate Small Business Sector (NCSBS).  
  • All loans sanctioned on or after April 08, 2015 upto a loan size of Rs.10 lakh for non-farm income generating activities will be branded as PMMY loans.

Objective: To promote & ensure bank finance to unfunded segments of the economy.

Target Clients

  •  Non–Corporate Small Business Segment (NCSB) comprising of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.

Features of MUDRA Loans under PMMY

  1. Borrowers can avail loan facility from any Public/Private/ Regional Rural Banks, NBFCs and MFIs.
  2. No processing fee for loans up to Rs.50000/- (SHISHU category).
  3. Banks have been mandated by RBI not to insist for collateral security in the case of loans upto 10 lakh extended to the units in the Micro Small Enterprises sector.
  4. ‘Activities allied to Agriculture’ , e.g. pisciculture , beekeeping, poultry ,   livestock , rearing , grading, sorting , aggregation agro industries, diary, fishery, agriclinics and agribusiness centers, food & agro-processing, etc (excluding crop loans, land improvement such as canals, irrigation, wells ) and services supporting these, which promote livelihood or are income generating , have been included under PMMY from April, 2016 onwards.

Schemes under PMMY

Scheme Amount of Loan
Shishu Up to Rs.50000/-
Kishore Above Rs.50000/- and up to Rs. 5 Lakh
Tarun Above Rs. 5 lakh and up to Rs.10 lakh




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