Mudra Loan Yojana 2025

Overview of Mudra Loan Yojana (PMMY)

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship government scheme launched to provide financial assistance to micro and small enterprises. It offers loans up to ₹10 lakh without collateral, enabling entrepreneurs to start or expand their businesses across India in 2025.

Loan Categories under Mudra Yojana

• Shishu: ₹50,000 and below for startups and micro-businesses.
• Kishor: ₹50,001 to ₹5,00,000 for small business expansion.
• Tarun: ₹5,00,001 to ₹10,00,000 for growing enterprises needing larger capital.

Eligibility Criteria

• Indian citizen aged 18 to 65 years.
• Small business owner, self-employed, or partnership firm.
• Business type: manufacturing, trade, services, or allied agricultural activities.
• Existing businesses or startups both eligible.
• No defaulters on previous bank/financial loans.

Documents Required

• Identity Proof: Aadhaar, PAN, Voter ID, Passport, or Driving License.
• Address Proof: Electricity/Water bill, Ration card, Passport.
• Business Proof: Trade license, GST registration, Shop license.
• Income Proof: Last 6 months bank statements, last 2 years ITR if applicable.
• Business Continuity Proof: Documents showing ongoing business operations.
• Project Report: Business plan with financial estimates and growth projections.

Application Process Online

1. Visit Udyami Mitra portal.
2. Register a new account or login.
3. Fill the loan application form with personal & business details.
4. Upload required documents and project/business plan.
5. Submit application for verification.
6. Loan sanction & disbursement will be transferred to your bank account after approval.

Top Banks Offering Mudra Loans

• SBI – SBI PMMY
• Axis Bank – Axis Bank PMMY
• HDFC Bank – HDFC Bank PMMY
• Canara Bank – Canara Bank PMMY
• Bank of Baroda – Bank of Baroda PMMY

Benefits of Mudra Loan

• Collateral-free loans for small businesses and startups.
• Competitive interest rates (approx. 8%-12% p.a.).
• Flexible repayment tenure from 12 months to 5 years.
• Support to expand and develop business operations.
• Recognized & supported government initiative for entrepreneurship.

Key Considerations

• Ensure no previous loan defaults.
• All documents must be authentic and verified.
• Define loan purpose clearly.
• Have a clear repayment plan for timely EMI payment.

Common FAQs

Q1: Can startups apply?

Yes, both new and existing businesses can apply for Shishu or Kishor category loans.

Q2: What is the maximum loan amount?

Maximum loan under PMMY is ₹10 lakh under the Tarun category.

Q3: Are collateral/security required?

No, all Mudra loans are collateral-free.

Q4: How fast is disbursal?

After verification, disbursal may take 3–7 working days depending on bank and completeness of documents.

Q5: Can self-employed professionals apply?

Yes, self-employed professionals, retailers, and service providers can avail Mudra loans.