The Pradhan Mantri Mudra Yojana (PMMY) is one of the flagship schemes of the Union government to encourage self-employment. Under PMMY, collateral-free institutional credit up to ₹10 lakh is provided by Member Lending Institutions (MLIs) i.e. Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).

Pradhan Mantri Mudra Yojana: Eligibility

-The applicant must be a citizen of India.

-Any individual, who is otherwise eligible to take a loan and has a business plan for a small business enterprise can avail loan under the Scheme. S/he can avail loans for income-generating activities in the manufacturing, trading, and services sectors and also for activities allied to agriculture across three loan products.

The applicant should not have a history of loan default

  • The applicant’s business must be at least 3 years old.
  • The entrepreneur should belong to the age group of 24 to 70 years.

Pradhan Mantri Mudra Yojana: Benefits

The scheme offers three types of loans:

a)Shishu (loans up to ₹50,000)

b)Kishore (loans above ₹50,000 and up to ₹5 lakh)

c)Tarun (loans above Rs. 5 lakh and up to Rs. 10 lakh).

Existing small businesses can also avail of credit facilities at reasonable interest rates to expand their operations.

Select from the provided options between ‘New Entrepreneur’, ‘Existing Entrepreneur’, and ‘Self-Employed’.

  • In case of a new registration, add the ‘Name of the Applicant’, ‘Email ID’, and ‘Mobile Number’.

Generate OTP and Register.

The Government has taken various steps towards spreading awareness about PMMY across the country. These, inter-alia, include publicity campaigns through print media, TV, radio jingles, hoardings, town hall meetings, financial literacy and awareness camps, special drives for financial inclusion, etc. Banks also undertake publicity through their branches and also through Banking Correspondents (BCs).