The Prime Minister Mudra Loan Scheme 2025 or Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India for financing small and micro-enterprises. Rolled out in April 2015, the scheme has been launched with the purpose of extending loans to individuals, SMEs (Small-to-Medium Enterprises), and MSMEs (Micro, Small & Medium Enterprises) for starting or scaling up their business. In this scheme, loans between ₹5,000 and ₹10 lakh are provided without collateral, so it is easily accessible to any entrepreneur.
प्रधानमंत्री मुद्रा योजना संक्षिप्त विवरण (PMMY) 2025
What is MUDRA?
MUDRA means Micro Units Development and Refinance Agency. It is a government institution established by the Government of India for providing refinancing assistance to banks as well as financial institutions for lending to micro-enterprises. The scheme aims at empowerment of small businesspersons, particularly the ones in the unorganized sector, through affordable credit.
Categories of Loans:
Shishu: Up to ₹50,000 (for small business or startups).
Kishor: ₹50,001 to ₹5 lakh (for developing business).
Tarun: ₹5,00,001 to ₹10 lakh (for developed businesses).
Eligibility:
The applicant has to be an Indian citizen between the age group of 18 years and above.
The applicant should not be a defaulter in any financial institution.
There should be a good CIBIL/CRIF/EQUIFAX credit score.
Purpose of the Loan:
The loan is for non-farm purposes, like small enterprises, retail outlets, or service-based businesses. It is meant to encourage self-employment and employment generation.
Mudra Loan 2025 Interest Rates:
Interest rates on Mudra Loans differ from bank to bank but are usually from 8.15% per annum. The rates are competitive and are made low enough to be affordable for small business entrepreneurs.
How to Apply for Mudra Loan 2025 Online Application Process:
Go to the website of the bank where you have an account or any other associating bank.
Download the Mudra Loan Application Form.
Provide the necessary details, including personal, business, and loan amount details.
Upload required documents, like Aadhaar Card, PAN Card, and proof of business.
Submit the form online and wait for the bank’s approval.
Mudra Loan Documents Required
Identity Proof: Aadhaar Card, PAN Card, or Voter ID.
Address Proof: Electricity bills or rental agreement.
Business Proof: Certificate of business registration or GST certificate (if business is registered under GST).
Photographs: Passport-sized photographs.
Credit Score Report: CIBIL/CRIF report.
Advantages of Mudra Loan Scheme
Financial Inclusion: Offers credit to small and micro-enterprises.
No Collateral: Facilitates easy loan availability for small businesses and startups.
Flexible Repayment: Flexible repayment options are provided for loans.
Boost to Local Economy: Promotes entrepreneurship and employment opportunities in rural and urban sectors.
Participating Banks
Public Sector Banks: State Bank of India, Punjab National Bank, Bank of Baroda, etc.
Private Banks: HDFC Bank, ICICI Bank, Axis Bank, etc.
Regional Rural Banks: Andhra Pradesh Grameena Vikas Bank, Bihar Gramin Bank, etc.