Credit facilities to micro and small enterprises
In PMMY - No security or collateral required
For fund or non-fund based requirements
Can be used for a variety of purposes
What is the Pradhan Mantri MUDRA Yojana?
Launched on April 8, 2015, by the Hon’ble Prime Minister of India, the Pradhan Mantri MUDRA Yojana (PMMY) is a flagship scheme designed to empower small and micro-enterprises. It provides loans up to ₹10 lakh to non-corporate, non-farm businesses in manufacturing, trading, and services, including allied agricultural activities.
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Pradhan Mantri Mudra Yojana: Latest Updates and Key Details
Collateral-Free Loans Up to ₹10 Lakh
The scheme now offers collateral-free loans up to ₹10 lakh, doubling the previous limit of ₹5 lakh. This enhancement aims to provide better access to formal financing for small businesses, enabling them to grow without the burden of pledging assets.
Hassle-Free Credit Access
Small businesses often struggle with limited access to formal banking due to their informal status. The updated scheme addresses this challenge by introducing a Unique Identification Number (UID) for borrowers, ensuring smoother credit access and reducing dependence on informal financial sources.
Impact of PMMY
Since its inception, the Pradhan Mantri Mudra Yojana (PMMY) has disbursed over ₹3 lakh crore in loans, supporting nearly 12 million small businesses by 2019. Approximately 80% of these loans were allocated to microenterprises, fostering entrepreneurship and economic growth while promoting financial inclusion.
Brief Summary of Pradhan Mantri Mudra Yojana
| Scheme Name | Pradhan Mantri Mudra Loan Yojana |
| Launched by | Shri Narendra Modi |
| Plan start date | year 2015 |
| Nodal agency | Micro Units Development & Refinance Agency |
| Beneficiary | Small and Medium Enterprise Startups |
| Target | to empower |
| Loan amount | Maximum Rs 10 lakh |
| Application system | offline |
| Start filling the application form | Available now |
| Type of scheme | Central Govt. scheme |
| Launched by | https://www.mudra.org.in/ |
Eligibility and Loan Categories
- Eligibility: Open to Indian citizens engaged in non-farm, non-corporate, and non-MSME activities with viable business plans.
- Loan Categories:
- Shishu: Loans up to ₹50,000 for basic business needs.
- Kishor: Loans between ₹50,000 and ₹5 lakh for growing businesses.
- Tarun: Loans between ₹5 lakh and ₹10 lakh for established businesses.
Features of Mudra Loans
- Loan amount: ₹50,000 to ₹10 lakh.
- Collateral-free: No asset pledging required.
- Interest rates: Subsidized and competitive.
- Repayment tenure: Flexible, ranging from 12 to 60 months.
Comparison of Business Loan Interest Rates Offered by Top Banks/NBFCs
Here is a comparison of business loan interest rates offered by top banks and NBFCs in India:
| Bank/NBFC | Interest Rate |
| SBI | 8.5% to 11.5% |
| HDFC Bank | 9.5% to 12.5% |
| ICICI Bank | 9.75% to 12.75% |
| Kotak Mahindra Bank | 9.99% to 12.99% |
| Bajaj Finance | 9.5% to 13.5% |
| Capital First | 10% to 14% |
| Fullerton India | 10.5% to 14.5% |
| Lendingkart | 11% to 15% |
| Indifi | 11.5% to 15.5% |
| SMEcorner | 12% to 16% |
| Bizongo | 12.5% to 16.5% |
Mudra Card
The Mudra Card offers seamless financial transactions with features like zero interest on withdrawals, unlimited transactions, and wide acceptance at financial institutions.
Benefits of PMMY
- Boosts financial inclusion.
- Provides affordable credit to small businesses.
- Promotes entrepreneurship and employment generation.
Key Highlights of PMMY
- Launch: 2015 by PM Narendra Modi.
- Maximum Loan Amount: ₹10 lakh.
- Nodal Agency: Micro Units Development & Refinance Agency (MUDRA).
- Target Beneficiaries: Small businesses and startups.