Pradhan Mantri Mudra Yojana (PMMY)| Guide to apply

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Pradhan Mantri Mudra Yojana (PMMY)| Guide to apply

What is Pradhan Mantri Mudra Yojana?

In 2015, the Government launched Pradhan Mantri Mudra Yojana to help Micro and Small Enterprise related to non-corporate, Non-farm sector to get collateral-free loans up to 10 lakhs. The loan is for a maximum period of 5 years.

MUDRA stands for Micro Units Development and Refinance Agency Limited, which is a wholly-owned subsidiary of SIDBI. It is registered under Companies Act 2013 and is a Non-Banking Financial Institution.

The primary objective of MUDRA is to provide refinance to all eligible institutions like Commercial Banks, RRBS, Cooperative Banks, NBFC and MFI, etc. in the business of lending to micro / small business entities engaged in manufacturing, trading and services activities with loan requirement up to Rs. 10 lakhs under PMMY.

Benefits of Pradhan Mantri MUDRA LOANS

The scheme is promoted by the Government, so there is a special thrust by the various government agencies to encourage these loans. As per available reports, a total of Rs 1.69 lakh crore has been disbursed through 3.33 crore applications.

Benefits are as undermentioned

  1. These are collateral-free loans up to RS. 10 lakhs
  2. The Interest rate charged is competitive
  3. Various agencies involved to help in setup and guide entrepreneurs
  4. Flexible repayment periods

Types of MUDRA LOANS and Documents requirement

There are three types of mudra loans, depending upon the amount of credit required by the applicant.

1. Shishu

The maximum amount applied under SHISHU is Rs 50,000/-. It is suitable for first-time entrepreneurs who would like to start their enterprise.

The documents required to apply for SISHU loans along with the application are:-

1)  Proof of identity – Self-certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card/Passport/Photo IDs issued by Govt. authority etc.

2)  Residence Proof – Recent telephone bill/ electricity bill/ property tax receipt (not older than two months)/ Voter’s ID card/ Aadhaar Card/ Passport of Individual/ Proprietor/ Partners/Bank passbook or latest account statement duly attested by Bank officials/ Domicile certificate/certificate issued by Govt. authority/Local Panchayat/Municipality etc.

3) Applicant’s recent photograph (2 copies) not older than six months.

4)  Quotation of Machinery/ other items to be purchased.

5) Name of supplier/ details of machinery/ price of machinery and/or items to be purchased.

6) Proof of Identity/ Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents about the ownership, identity, and address of the business unit, if any

7) Proof of category like SC/ST/OBC/Minority etc.- caste certificate.

2. Kishor

As the name suggests, in this category, one can apply for a higher amount i.e. more than Rs 50,000/- and up to 5,00,000/-. Kishore loans are aimed for business owners who have started their business and looking for expansion.  

Documents checklist for KISHORE loan:-

1)  Proof of identity – Self-certified copy of Voter’s ID card / Driving License / PAN Card / Aadhaar Card/Passport.

2)  Proof of Residence – Recent telephone bill, electricity bill, a property tax receipt (not older than two months), Voter’s ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.

3)  Proof of SC/ST/OBC/Minority.

4)  Proof of Identity/Address of the Business Enterprise -Copies of relevant licenses/registration certificates/other documents about the ownership, identity, and address of the business unit.

5)  Applicants should not be a defaulter in any Bank/Financial institution.

6)  Statement of accounts (for the last six months) from the existing banker, if any.

7) Last two years balance sheets(Asset & Liability and Profit & Loss statements) of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).

8) Projected balance sheets for one year in case of working capital limits and the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).

9) Sales achieved during the current financial year up to the date of submission of application.

10)  Project report (for the proposed project) containing details of technical & economic viability.

11)  Memorandum and articles of association of the company/Partnership Deed of Partners etc.

12)  In the absence of a third-party guarantee, Asset & Liability statement from the borrower, including Directors & Partners, may be sought to know the net-worth.

13)  Photos (two copies) of Proprietor/ Partners/ Directors.

Pradhan Mantri Mudra Yojana

3. Tarun

The loan amount one can apply under Tarun is RS. 5 lakh to RS. 10 lakhs. The business persons who already have a running business and want to expand their business or modernize their equipment can apply.

The documents required are the same as KISHORE loans.

How to apply for Pradhan Mantri Mudra Yojana (PMMY)?

Most of the financial institutions like Banks, NBFCs, Fin-tech companies are providing loans under Pradhan Mantri Mudra Yojana. PMMY loans are popular because these loans are refinanced by the MUDRA, a subsidiary of SIDBI.

  1. To apply for the PMMY, you can visit your bank and inquire about it.
  2. Best way to apply is to visit; Government owned website

The best thing is through this website; you can get in touch with various listed agencies for help in multiple aspects like how to set up or develop business and how to fill forms? How to make business proposals, business projections, etc.

The various aspects in which you can get help are followings:-

  • Application filling and Project report preparation
  • Hand Holding Virtual Environment (HAVE) – virtual environment for filling the application without a physical presence
  • Training to enhance skill in vocational fields
  • Mentoring
  • Work sheds – allotment of land or shed for starting a business
  • Margin Money or Subsidy
  • Credit counselor
  • Entrepreneur Development Programmes – training on every aspect of business
  • Financial Training

Steps to follow after visiting website:-

  1. Create your login
  2. Edit your basic profile and loan requirements
  3. Scan documents required and upload on the website
  4. Choose Financial Institutions through which you want to apply for the loan
  5. Submit the details

There is a maximum of 6 pages to be filled for applying through this website.

  • SBI e-Mudra loan

Do visit link and go through the process to avail of the loan.

The loan you can apply through this link is a maximum of Rs 50,000/-. You have required an account with SBI and Aadhaar number with a registered phone number with you.


The PMMY scheme is a good initiative by the Government to provide initial hand-holding in terms of money to start one’s business or to expand the business.

In INDIA, There is infrastructure available for an established business to raise money through banks, mutual fund, venture capitalist, etc

Besides money, there is also infrastructure created to get knowledge of various aspects of running a business. If you have the desire to start your entrepreneurial journey, then you will find help for every stage starting from conceptualization, planning, finance skill development, etc.

Start your journey now. ShubhWealth.

This Post Has 3 Comments

  1. shubham kumar

    Very well put information about beginner who wish to start on their own and need financial assistance. Great work.keep it up.

  2. Ashwini

    Well explained. Hope to see more posts.

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