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Pradhan Mantri Mudra Yojana: Know the Eligibility, Benefits, Necessary Documents, Interest Rates & Method to Apply

Pronami Chetia
Pronami Chetia
MUDRA Scheme

Although the government has initiated many schemes for the farmers of our country, still farmers are not able to get the best utilization of these due to the lack of awareness. The center has launched many schemes and yojana to help the farmers to reach Modi's vision of 2020 and generate sustainable income within every farmer.

Pradhan Mantri Mudra Yojana (PMMY) is a program directed towards supporting income-generating micro-enterprises engaged in manufacturing, trading and services sectors where they can easily take loans up to 10 lakh rupees to enlarge your business. The center has initiated this scheme with the aim of helping all the people to increase their employment and remove poverty from Rural India. Prime Minister of India has launched the Pradhan Mantri Mudra Yojana (PMMY) in New Delhi on April 08, 2015, along with the launch of MUDRA.

“Supporting the small entrepreneurs of India is the biggest way to help the Indian economy grow and prosper, said Narendra Modi while launching the scheme.

What is Pradhan Mantri Mudra Yojana? 

Pradhan Mantri Mudra yojana was launched on 8 April 2015. This scheme was started by Prime Minister Narendra Modi with the objective of providing employment to educated youth. With the Mudra loan, any person can easily take a loan. A loan of up to 10 lakh can be easily availed from the Mudra loan. The bank will provide new technology to the lending institutions, which will make it easier to take and give loans.


What are the key objectives of the Pradhan Mantri Mudra Yojana?

The inception of MUDRA Yojana was done keeping in mind several objectives to be fulfilled during the implementation of this yojana. The most prominent of these are:

  1. For laying down policy guidelines for financing small/ micro enterprises

  2. Getting all the Microfinance Institutions and related entities registered and then regulating the same

  3. For helping the small businesses develop and grow further

  4. Assisting lower-income groups in building and expanding their business

  5. To assist in creating easy access to finance for unbanked and help in lowering their cost of finance

  6. To provide SC/ST lending preference

  7. For regulating all Microfinance Institutions that are dealing with trading, manufacturing, and service.

Documents Required for Pradhan Mantri Mudra Yojana

Identity card – You need to access a government-approved PAN card/ Aadhaar card/ driving license/ Voter ID card or passport. 

Details of sales, profit, and losses-  The applicant will also have to give details of sales and profit losses during the financial year. If a person is partnering with any company or any business, then he will also have to give that copy. 

Photograph- The applicant will also have to provide two photographs of himself while applying, if he is partnering with someone else, then he will also have to provide two photographs of him simultaneously. 

Types of Mudra Loans-

Shishu Loans - Up to 50 thousand loans can be given under the Shishu loan.

Kishore Loan- Under Kishore Loan, loans above 50 thousand and up to Rs 5 lakh can also be given.

Tarun Loans- Under Tarun loans, loans can be avail above Rs 5 lakh and up to Rs 10 lakh.

Eligibility of the borrower-

Loans would be provided to all the non-farm income-generating businesses in trading, manufacturing, and services whose credit requirements are less than INR 10 lakhs by all Public Sector Banks, State Cooperative Banks, Regional Rural Banks, and Urban Co-operative Banks would be known as MUDRA loans under the PMMY (Pradhan Mantri MUDRA Yojana). Basically, all those who want to avail loans below INR 10 lakhs for micro-units are qualified for such loans.

An application form under the scheme would be available with each of the above-mentioned institutions. This application form needs to be submitted together with the documents listed below:

  • Identity months)

  • Quote for the Machinery or other items to be purchased

  • Supplier details/Details of the machinery/Price of Machinery

  • Identity Proof/Address Proof of the Business (relevant certificates & licenses)

  • Category Proof if any

How to get a loan under Mudra Bank Loan Scheme? 

If a person wants to take a Mudra Bank loan, then he has to follow these procedures -

First, the applicant needs to go to the bank and all interest rate information related to that has to be taken.

An application form will also have to be filled for the loan. You will have to fill the application form and submit the required documents and the business you will start.

You need to full-fill all the formalities prescribed by the bank that has to be completed. When all the formalities completed, your loan will be approved by the Mudra Bank Scheme.

No interest rate has been fixed under Mudra Loan. But in general, the interest rate of Mudra loan is around 12% per annum. 


Banks Lending Mudra yojana

In today's time, almost all banks are offering this loan which includes SBI Bank, Punjab National Bank, and HDFC Bank, etc.

Mudra Loans Interest Rates-


Interest Rate

Processing Fee

Loan Amount



10.99% to 20.70%

Up to 1.5%

Maximum INR 15 lakhs

1 to 5 years


10.99% to 17.99%


Maximum INR 20 lakhs

1 to 5 years

Oriental Bank of Commerce

10.65% to 11.65%


INR 50,000 to INR 10 lakhs

1 to 5 years


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