The Pradhan Mantri Mudra Yojana (PMMY) continues to operate actively across India. Launched by the Union Government to provide formal institutional credit to non-corporate, non-farm micro and small enterprises, the scheme remains a primary funding channel for entrepreneurs, retail shopkeepers, traders, and small manufacturers.
Updated Loan Categories and Funding Limits
Loans under PMMY do not require collateral and are divided into distinct categories based on the stage of the business:
Shishu: Covers loans up to Rs 50,000 for new micro-businesses and startups.
Kishor: Covers loans above Rs 50,000 and up to Rs 5 lakh for growing small business units.
Tarun: Covers loans above Rs 5 lakh and up to Rs 10 lakh for established enterprises expanding operations.
Tarun Plus: Covers loans above Rs 10 lakh and up to Rs 20 lakh for entrepreneurs who have successfully repaid previous loans under the Tarun category.
Who Is Eligible to Apply?
Any Indian citizen aged 18 to 65 years with a viable business plan for an income-generating non-farm enterprise can apply. Eligible sectors include trading, small manufacturing, service enterprises, food processing, commercial vehicle operations, and activities allied to agriculture such as dairy, poultry, and beekeeping. The borrower must have a satisfactory credit history and must not be a defaulter with any bank or financial institution.
Where to Take the Loan
Applicants can request a Mudra loan through several approved Member Lending Institutions:
Public and private sector commercial banks
Regional Rural Banks (RRBs) and Small Finance Banks (SFBs)
Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs)
The official government JanSamarth portal for online applications
Required Documents Checklist
Banks typically request basic identification, address, and business proof documents:
Identity & Address Proof: Self-attested copies of Aadhaar card, PAN card, Voter ID, or Passport.
Business Proof: Registration certificates, trade licenses, or ownership proof of the business unit.
Financial Documents: Bank account statements for the past 6 months. For loan amounts above Rs 2 lakh, banks generally require projected financial estimates and tax statements for existing units.
Project Cost Details: Machinery quotations or estimated purchase lists with supplier details.
Application Steps
Borrowers should select the correct loan category based on their capital requirements, prepare the required documents, and submit their application directly to a bank branch or via the digital portal. The bank evaluates the business plan and creditworthiness before approving and disbursing the funds.