Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans upto 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, Cooperative Banks, MFIs and NBFCs.

The borrower can approach any of the lending institutions mentioned above or can apply online through this portal. Under the aegis of PMMY, MUDRA has created three products namely ‘Shishu‘, ‘Kishore‘ and ‘Tarun‘ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.

Pradhan Mantri MUDRA Yojana Rate of interest charged

MUDRA is a refinancing agency which will extend its funds to Last Mile Financiers to enable them to reach out to the sector. Access to finance in conjunction with rational price is going to be the unique customer value proposition of MUDRA. It will use a variety of innovative financing means including technology to bring down the cost of funding for the ultimate borrower.

Eligibility of persons for Pradhan Mantri MUDRA Yojana

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

Recovery method under Pradhan Mantri MUDRA Yojana

Mudra Bank would work on both ends, as per the scheme. It would ensure that proper and adequate credit facility is facilitated to the needy entrepreneurs on one hand, whereas, accurate and efficient recovery method is followed by the banks on the other, to create a justifiable and balanced credit system. You will have to repay the loans taken in a tenure ranging from 5 to 7 years.

Stages under Pradhan Mantri MUDRA Yojana

SNOStagesMaximum AmountDetails
1ShishuRS 50 ThousandThis stage would cater to entrepreneurs who are either in their primitive stage or require lesser funds in order to get their businesses started.  Under this stage the applicant would be eligible to get up to Rs 50,000 credit.
2KishorRs 5 LakhsThis stage would cater to entrepreneurs who have requirement of funds in the range of Rs 50,000 and Rs 5 lakh.  This section of entrepreneurs would belong to either those who have already started their business and want additional funds to mobile the business or those who simply require this much of money to start up their businesses.
3TarunRs 10 LakhsIf an entrepreneur meets the required eligibility conditions, he/she could apply for a loan up to Rs 10 lakh.  This would be the highest level of amount that an entrepreneur could apply for a start up loan.

Pradhan Mantri MUDRA Yojana Application Form

How to apply Pradhan Mantri MUDRA Yojana Loan

There is no formal or structured way of apply Mudra Loan. You will have to approach all the banks listed in this blog and give them the detailed description of your business. Then will ask to to fill the Mudra form. If you already have a current account in that bank then it will help your application to process quickly. If you need any equipment for your business please carry the invoice for the same. This is a collateral free loan so if you have a good credit history then it would help. Please take the acknowledgement slip with you for reference.

Pradhan Mantri MUDRA Yojana Loan Complaint Office (Helpline, Toll Free, Customer care) Numbers

I have got a lot of people inquiring about the complaint office of Mudra loan Yojana. Please find the toll free number on which you can call and file your complaint. Please provide them detailed information and ask them for the complaint id. Here is following toll free number:

  • 1800 180 1111
  • 1800 110 0001


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