Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises. These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. The borrower can approach any of the lending institutions mentioned above or can apply online through this portal www.udyamimitra.in .
Basic Eligibility
The business should be either one of the following:
- Small manufacturing enterprise
- Shopkeepers
- Fruit and Vegetable vendors
- Artisans
- ‘Activities allied to agriculture’, e.g. pisciculture, bee keeping, poultry, livestock, rearing, grading, sorting, aggregation agro industries, diary, fishery, agriclinics and agribusiness centres, food & agro-processing, etc. (excluding crop loans, land improvement such as canal, irrigation and wells).
Fact Box
The loans under MUDRA scheme can be availed only through banks and lending institutions which include:
- Public Sector Banks
- Private Sector Banks
- State operated cooperative banks
- Rural banks from regional sector
- Institutions offering micro finance
- Financial companies other than banks
Objectives of Pradhan Mantri Mudra Yojana :
- Funding the unfunded – To sanction loans up to rupees 10 Lakhs to those who have a business plan to generate income from a non-farm activity like manufacturing, processing, trading, or service sector but don’t have enough capital to invest
- Reducing jobless economic growth – To help generate sources of employment and increase the overall GDP by providing micro-enterprises with credit facilities.
- Monitoring and regulating the Microfinance institutions (MFI) – With the help of MUDRA bank, the network of microfinance institutions will be monitored and new registration will also be done.
- Integration of Informal economy into Formal sector – It will help India also grow its tax base as incomes from the informal sector are non-taxed.
- Promoting financial inclusion – PMMY further adds to the vision of financial inclusion with the aim to reach the last mile credit delivery to micro-businesses and taking the help of technology solutions.
Types of PMMY Loans
| Name of the Type of Loan | Coverage of the Loan |
| Shishu | < ₹50,000 |
| Kishor | Above ₹50,000 up to ₹5,00,000 |
| Tarun | Above ₹5,00,000 up to ₹10,00,000 |
Sectors Covered under PMMY :
To maximize coverage of beneficiaries and tailor products to meet requirements of specific business activities, sector/activity focused schemes would be rolled out. To begin with, based on the higher concentration of businesses in certain activities/sectors, schemes are proposed for:
| Sector | Comments | Types of Activities under that Sector |
| Land Transport Sector | Loans to support the purchase of transport vehicles. These vehicles could be used for goods or personal transport. | Auto-rickshaws, E- rickshaws, etc.Passenger cars and taxis.Small-goods transport vehicles.Other three-wheelers. |
| Service Sector | This includes community services, social services, or personal services. | Hair and beauty salons, beauty parlours, etc.Tailoring stores, boutiques, dry cleaning services, etc.Gymnasium, Athletic training, medical shops, etc.Garage, Cycle & motorcycle repair centres, etc.Other services like photocopying shops, courier agencies, etc. |
| Food Product Sector | Support for small scale food industries. | Manufacturing papads, pickles, jams/jellies, and other agricultural produce/preservation methods.Sweet shops, small service food centres, etc.Everyday catering services, canteens, etc.Micro cold storages, ice-making factories, Cold chain vehicles, ice cream making industries, etc.Bakeries and Baked products manufacturing. |
| Textile Sector | Supporting micro textile industries that produce garment and non-garment products. | Handloom and power loom industryHandwork industry like embroidery, chikan work, dyeing and printing, knitting, etc.Mechanical or computerized stitching for garments and non-garments.Production of automobile and furnishing accessories, etc. |
Important Links :
| Apply for Loan through Udyamimitra Portal | Click Here |
| Official Website | Click Here |
