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Pradhan Mantri Mudra Yojana 2026 (PMMY): Pradhan Mantri Mudra Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015, to provide loans of up to Rs.10 lakh to non-corporate, non-farm small or micro-enterprises (though this limit can extend to Rs.20 lakh for entrepreneurs who have previously availed and successfully repaid a loan under the ‘Tarun’ category). Loans under PMMY are referred to as ‘MUDRA loans’. These loans are disbursed through commercial banks, Regional Rural Banks (RRBs), small finance banks, microfinance institutions (MFIs), and non-banking financial companies (NBFCs). Borrowers can approach any of these lending institutions or apply online via the www.udyamimitra.in portal.
Under PMMY, MUDRA has introduced four loan products or schemes: ‘Shishu’, ‘Kishor’, ‘Tarun’, and ‘TarunPlus’. These categories signify the stage of development and financial requirements of the beneficiary micro-unit or entrepreneur, and also serve as a benchmark for subsequent stages of growth or expansion.
Starting a business often requires capital, but arranging funds can be a major challenge for first-time entrepreneurs. To encourage self-employment and support small businesses, the Government of India launched the Pradhan Mantri Mudra Yojana (PMMY), a flagship loan scheme that provides collateral-free financial assistance to eligible borrowers.
Whether you dream of opening a tea stall, expanding a small shop, launching a service business, or starting a manufacturing unit, PMMY can help eligible entrepreneurs access institutional credit without pledging assets.
What is the Pradhan Mantri Mudra Yojana (PMMY)?
The Pradhan Mantri Mudra Yojana (PMMY) is a government-backed loan scheme designed to provide financial support to non-corporate, non-farm micro and small enterprises.
Under the scheme, eligible applicants can obtain loans through banks, regional rural banks, small finance banks, microfinance institutions and other approved lending institutions.
The primary objective is to promote entrepreneurship, generate employment and strengthen India’s micro-business sector.
Loan Amount Available
Under PMMY, eligible borrowers can receive loans of up to Rs.20 lakh, subject to the latest scheme guidelines and lender approval.
The amount sanctioned depends on the nature of the business, repayment capacity and the lending institution’s assessment.
Pradhan Mantri Mudra Yojana: Who Can Apply?
Individuals planning to start or expand a small business may apply, provided they meet the eligibility criteria laid down by the lending institution.
Generally, applicants should:
- Be between 18 and 65 years of age.
- Intend to establish or expand a non-farm business.
- Meet the documentation and eligibility requirements prescribed by the bank or financial institution.
Is Collateral Required?
One of the biggest advantages of PMMY is that no collateral security is generally required for eligible loans.
Loans under the scheme are supported under the Credit Guarantee Fund for Micro Units (CGFMU/CGTMSE-related guarantee framework, as applicable under current guidelines), helping improve credit access for small entrepreneurs.
Interest Rate for Pradhan Mantri Mudra Yojana
PMMY does not have a single fixed interest rate.
Instead, the interest rate is determined by the lending bank or financial institution, based on RBI guidelines, the applicant’s credit profile, and business assessment.
Different banks may therefore offer different interest rates and repayment terms.
Also Read: PM SVANidhi Scheme 2026 | Rs.50,000 Loan for Street Vendors, Eligibility, Benefits and Apply Online
Businesses That Can Benefit
The scheme supports a wide range of eligible micro-enterprises, including:
- Tea and food stalls
- Grocery and retail shops
- Beauty parlours and salons
- Tailoring and boutique businesses
- Repair and maintenance services
- Small manufacturing units
- Transport services
- Local traders and vendors
- Service-based businesses
Key Benefits of PMMY
Some of the major benefits include:
- Collateral-free business loans for eligible applicants.
- Financial support for new and existing micro-enterprises.
- Encourages self-employment and entrepreneurship.
- Helps small businesses expand operations.
- Available through a large network of banks and financial institutions.
How to Apply for Pradhan Mantri Mudra Yojana 2026 (PMMY)
Interested applicants can approach:
- Public sector banks
- Private sector banks
- Regional Rural Banks (RRBs)
- Small Finance Banks
- Microfinance Institutions (MFIs)
- Other authorised lending institutions
Applicants should carry identity proof, address proof, business-related documents and any additional documents required by the lender.
Official Website: https://udyamimitra.in/
