PM Mudra Loan 2025: A to Z Details
A – About the Scheme
PMMY facilitates microcredit for income-generating activities in manufacturing, trading, services, and allied agricultural sectors (e.g., poultry, dairy, beekeeping) through the Micro Units Development and Refinance Agency (MUDRA).
B – Benefits
- Loan Amount: Up to ₹20 lakh (Tarun Plus category introduced in 2024-25).
- Collateral-Free: No security required.
- Flexible Repayment: 1-7 years, depending on the lender.
- Mudra Card: A RuPay debit card for working capital withdrawals.
C – Categories
- Shishu: Up to ₹50,000 (nascent businesses).
- Kishore: ₹50,001 – ₹5 lakh (growing businesses).
- Tarun: ₹5,00,001 – ₹10 lakh (established businesses).
- Tarun Plus: ₹10,00,001 – ₹20 lakh (for those who repaid Tarun loans successfully).
D – Documents Required
- Aadhaar Card (for e-KYC).
- PAN Card (optional for loans < ₹2 lakh).
- Business proof (Udyam Registration, licenses, etc.).
- Address proof (utility bill, Voter ID).
- Bank account details.
- Income proof (ITR for loans > ₹2 lakh).
- Caste certificate (if applicable).
E – Eligibility Criteria
- Citizenship: Indian nationals.
- Age: 18-65 years (varies by lender).
- Business Type: Non-farm, income-generating micro/small enterprises.
- Credit History: No defaults with banks/NBFCs.
- Experience: Skills/knowledge relevant to the proposed business.
F – Features
- No processing fee for Shishu loans (up to ₹50,000) in most cases.
- Refinance support by MUDRA to banks/NBFCs.
- Credit Guarantee Fund for Micro Units (CGFMU) covers defaults.
G – Goals/Objectives
- Fund the unfunded micro-enterprises.
- Promote entrepreneurship and employment.
- Support women, SC/ST, and minority communities.
H – How to Apply
- Online Method:
- Visit www.udyamimitra.in or a lender’s website (e.g., SBI, ICICI).
- Register/login with mobile number and Aadhaar for e-KYC.
- Select loan category (Shishu/Kishore/Tarun/Tarun Plus).
- Fill out the form, upload documents, and submit.
- Receive acknowledgment and track status.
- Offline Method:
- Visit a nearby bank (Public Sector, Private, RRB, NBFC, MFI).
- Collect the PMMY application form (1 page for Shishu, 3 pages for others).
- Submit with documents and business plan.
I – Interest Rates
- Range: 9.30% to 20% per annum (varies by lender).
- Factors Affecting Rates:
- Applicant’s credit score (CIBIL).
- Loan amount and category.
- Business type and repayment tenure.
- Lender’s policy (e.g., MCLR-linked rates).
- Sample Rates (2025):
- SBI: 11.75% (allied agri loans); EBLR-linked for others.
- Indian Bank (Shishu): Repo + 4.40% (~8.8% as of March 2025).
- Bajaj Finserv: 11.15% – 20%.
- Women Entrepreneurs: 0.25% concession by MUDRA-supported MFIs.
J – Job Creation
Aims to generate employment by funding micro-units like shops, vendors, and startups.
K – Key Lenders
- Public Sector Banks: SBI, Bank of Baroda, PNB.
- Private Banks: ICICI, HDFC.
- Regional Rural Banks (RRBs), Small Finance Banks, NBFCs, MFIs.
L – Last Date
No fixed deadline; applications are accepted year-round, but specific drives (e.g., 2025 targets) may have cutoffs announced via notifications.
M – Mudra Card
A debit card linked to the loan account for flexible cash withdrawals and POS payments.
N – Notification
Latest updates released via mudra.org.in and lender websites; 2024-25 Budget increased the loan ceiling to ₹20 lakh.
O – Online Portal
- Udyamimitra: www.udyamimitra.in (central portal for applications).
- Lender-specific portals (e.g., sbi.co.in, bankofbaroda.in).
P – Processing Time
- Shishu: 7-10 days.
- Kishore/Tarun/Tarun Plus: 2-4 weeks (varies by lender).
Q – Quick Facts
- Launched: April 8, 2015.
- Total Disbursed (till 2024): ₹43,015.68 crore (per mudra.org.in).
- Target 2025: ₹3 lakh crore (estimated).
R – Repayment Tenure
- 12 months to 7 years (extendable in specific cases).
- EMI calculated based on cash flow and lender norms.
S – Selection Process
- Application review by lender.
- Creditworthiness check (CIBIL not mandatory for small loans).
- Business plan evaluation.
T – Table of Interest Rates (Sample, 2025)
| Lender | Interest Rate (p.a.) | Category | Tenure |
|---|---|---|---|
| SBI | 11.75% (Agri-linked) | All | Up to 7 years |
| Indian Bank | Repo + 4.40% (~8.8%) | Shishu | Up to 5 years |
| Bank of Baroda | MCLR + 2.75% (~9.5%) | Kishore/Tarun | Up to 5 years |
| Bajaj Finserv | 11.15% – 20% | All | 1-5 years |
| MFIs (Women) | 9.30% – 12% (concession) | All | 1-5 years |
U – Updates (2025)
- Loan ceiling raised to ₹20 lakh (Tarun Plus).
- Digital push via Udyamimitra portal enhancements.
V – Vacancies/Target
No fixed vacancies; aims to fund millions of micro-units annually.
W – Who Can Apply
- Individuals, proprietorships, partnerships, startups.
- Non-farm sector (manufacturing, trading, services, agri-allied).
X – X-Factor
- Collateral-free up to ₹20 lakh.
- Special focus on women entrepreneurs with concessional rates.
Y – Yearly Targets
- 2024-25: ₹2.44 lakh crore disbursed (per historical data).
- 2025 Goal: ₹3 lakh crore (projected).
Z – Zero Collateral
Backed by CGFMU, ensuring no security deposit is needed.
Notes
- Interest Rate Variability: Rates are not fixed by MUDRA; lenders set them per RBI guidelines. Contact your bank/NBFC for exact rates in 2025.
- Application Tips: Maintain a good credit score and prepare a solid business plan for better rates and approval chances.
- Verification: Check mudra.org.in or udyamimitra.in for the latest notifications and lender-specific details.