Posted on : April 9, 2018

April marks three years of the Pradhan Mantri Mudra Yojana (PMMY) which was introduced to cater to entrepreneurs who are either in their early stage or require lesser funds in order to get their business running. The aim was to give the MSME (micro, small and medium enterprises) sector an impetus.



What is the Mudra Scheme all about?

The PMMY was launched on April 8, 2015 with an aim to provide loans upto Rs 10 lakh to non-corporate, non-farm small or micro enterprises. According to information available on its official website, the loans are issued by commercial banks, small finance banks, co-operative banks, micro finance institutions (MFIs) and non-banking financial companies (NBFCs).

Who can it help ?

The scheme can help  the non–corporate small business segment i.e.  small manufacturing units, service sector units, shopkeepers, fruits or vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.

Am I eligible ?

Any Indian Citizen who has a business plan for a non farm income generating activity such as manufacturing, processing, trading or service sector  and whose credit need is less than Rs 10 lakh can approach either a Bank, MFI or NBFC for availing the loan. The usual terms and conditions of the lending agency may have to be followed. The lending rates are as per the RBI guidelines issued in this regard from time to time.

How does it work ?

A borrower can approach any of the lending institutions mentioned above or can apply only through the website. MUDRA has 3 categories –  ‘Shishu’, ‘Kishore’ and ‘Tarun’ to highlight the stage of development and funding needs of the beneficiary micro unit or entrepreneur.

‘Shishu’ covers loans upto Rs 50,000, ‘Kishore’ provides loans between Rs 50,000 and Rs 5 lakh and ‘Tarun’ handles loans ranging from above Rs five lakh to Rs 10 lakh.


Where can I learn more about the Scheme ?

The monitoring of PMMY progress at the state level is done through a forum of the State Level Bankers’ Committee and by MUDRA/Department of Financial Services at the national level.  There’s also a portal, where you can learn more about the schemes :

(Story courtesy: Inputs from wires &