Pradhan Mantri MUDRA Yojana loan up to ₹10 lakh. How to apply, eligibility & other details

Pradhan Mantri MUDRA Yojana loans: MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution that aims to provide funds to businesses through various financial institutions such as Banks, NBFCs, and MFIs.

In 2015, the Narendra Modi government introduced the Pradhan Mantri MUDRA Yojana (PMMY) to offer loans up to 10 lakh to small or micro enterprises outside the corporate and farming sectors.

What is MUDRA?

MUDRA (Micro Units Development & Refinance Agency Ltd) is an agency that provides funds to businesses through different financial institutions such as Banks, NBFCs, and MFIs.

MUDRA’s main objective is to support micro units or entrepreneurs by supplying funds through different financial institutions. This initiative, announced during the FY 2016 Union Budget, introduced three specific products: ‘Shishu’, ‘Kishore’, and ‘Tarun’. Each product represents a different stage of growth and funding requirements for micro units, providing guidance for their progression and expansion.

Eligibility Criteria

The MUDRA loans are accessible to small businesses operating as proprietorship or partnership firms, including small manufacturing units, service providers, shopkeepers, fruit or vegetable vendors, truck operators, food-service establishments, repair shops, machine operators, small-scale industries, artisans, food processors, and similar entities. These businesses can be located in both rural and urban areas. The eligibility criteria for MUDRA loans are as follows:

  • The applicant must be a citizen of India.
  • Eligible individuals with a viable business plan for a small enterprise can apply for the loans. These loans are available for income-generating activities in manufacturing, trading, services, and allied agricultural sectors across the three loan products.
  • The applicant should have no record of previous loan defaults.
  • The applicant’s business must have been operational for a minimum of three years.
  • Entrepreneurs applying for the loan should be between the ages of 24 and 70.

Application Process

To apply for MUDRA loans, interested individuals can visit the official website The application process involves the following steps:

  1. Visit the official website and click on the ‘Apply Now’ feature.
  2. Choose between the options available: ‘New Entrepreneur’, ‘Existing Entrepreneur’, or ‘Self-Employed’.
  3. For new registrations, provide details such as the applicant’s name, email address, and mobile number.
  4. Create a One-Time Password (OTP) and complete the registration process.

Types of Loans

The PMMY 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 ₹5 lakh and up to ₹10 lakh

Existing small businesses also have the opportunity to access credit facilities at fair interest rates to support their expansion endeavors. Gruha Jyoti Yojana Karnataka: Free Electricity to All Citizens and Tenants will also be eligible