EnterpriseNational SchemeOngoing

Pradhan Mantri MUDRA Yojana (PMMY) — Business Loans

Collateral-free loans up to Rs 20 lakh for non-farm micro and small enterprises.

Ministry of Finance

What you get

PMMY provides loans to non-farm small businesses through banks, NBFCs, and microfinance institutions under three categories: Shishu (up to Rs 50,000), Kishore (Rs 50,001 to Rs 5 lakh), and Tarun (Rs 5 lakh to Rs 20 lakh). No collateral required. Loan at market rates. Over 40 crore loans disbursed since 2015. Any citizen with a business plan for manufacturing, trading, or services can apply. Eligible activities: small manufacturing units, shopkeepers, fruit/vegetable vendors, truck operators, artisans, food processing, tailors, self-help groups.

Who can apply

Indian citizens aged 18+ with a viable business plan for micro/small enterprise in non-farm activities. First-time entrepreneurs, women entrepreneurs, SC/ST applicants get priority. No income limit — but loan size depends on credit history and business viability.

Documents required

General

  • Identity proof (Aadhaar, PAN)
  • Address proof
  • Business address proof
  • Bank statements (6 months)
  • Business plan/project report
  • Passport photograph
  • Caste certificate (SC/ST/OBC for priority)
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