Pradhan Mantri MUDRA Yojana
PMMY provides collateral-free loans up to ₹20 lakh to non-corporate, non-farm micro enterprises in India.
- Funding amount
- ₹50,000 – ₹20L (grant)
- Funding type
- Grant
- Provider
- Government of India (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Pradhan Mantri MUDRA Yojana (PMMY) is a flagship scheme of the Government of India designed to extend affordable credit to non-corporate, non-farm small and micro enterprises. The program targets businesses engaged in manufacturing, trading, services, and allied agricultural activities. Loans are categorized into four tiers based on funding needs: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and Tarun Plus (₹10 lakh to ₹20 lakh). By facilitating access to formal banking channels, PMMY aims to empower grassroots entrepreneurs and promote self-employment across the country.
Highlights
- Loans from ₹50,000 up to ₹20 lakh without collateral.
- Four tiers: Shishu, Kishore, Tarun, and Tarun Plus.
- Open to non-corporate, non-farm micro enterprises across India.
- Suitable for manufacturing, trading, services, and allied agriculture.
- No DPIIT or MSME registration required.
- Non-dilutive debt financing — no equity given up.
Who can apply
PMMY is open to non-corporate, non-farm small and micro enterprises. Eligible applicants include individuals, sole proprietorships, partnerships, and other non-corporate entities engaged in manufacturing, trading, services, or allied agricultural activities. Applicants must not be defaulters with any financial institution and must possess a satisfactory credit track record. There is no specific requirement for DPIIT or MSME registration, nor any restriction on industry, state, or founder characteristics.
- Stages: All stages (idea, early, growth) are eligible.
- Industries: Manufacturing, trading, services, and allied agriculture.
- States: All India.
- Entity types: Individuals, proprietorships, partnerships, and other non-corporate entities.
- DPIIT/MSME: Not required.
- Founder requirements: None specified.
Pradhan Mantri MUDRA Yojana is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Pradhan Mantri MUDRA Yojana accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The primary benefit is access to collateral-free loans from banks, NBFCs, and MFIs. Loan amounts range from ₹50,000 to ₹20 lakh, with four distinct categories:
- Shishu: Up to ₹50,000
- Kishore: ₹50,001 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
- Tarun Plus: ₹10 lakh to ₹20 lakh There is no equity dilution as these are loans, not grants or equity investments.
About the provider
Pradhan Mantri MUDRA Yojana is offered by Government of India, a government body. As a government-backed grant, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the official portal. Confirm the current deadline and document checklist there before you start.
Selection process
Applications are submitted through banks, NBFCs, or MFIs. The lender reviews the application, assesses the creditworthiness and business viability, and if satisfied, sanctions and disburses the loan. No specific stages or timeline are mandated by the scheme.
Documents you’ll need
Before you apply to Pradhan Mantri MUDRA Yojana, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
Pradhan Mantri MUDRA Yojana is best suited for startups in India seeking non-dilutive funding of ₹50,000 – ₹20L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What is the maximum loan amount under PMMY?
The maximum loan amount is ₹20 lakh under the Tarun Plus category.
Is there an application deadline for MUDRA loans?
No, the scheme does not specify a deadline; applications are accepted on a rolling basis through participating lenders.
Who can apply for a MUDRA loan?
Non-corporate, non-farm small and micro enterprises including individuals, sole proprietorships, and partnerships engaged in manufacturing, trading, services, or allied agriculture.
Do I need DPIIT or MSME registration to apply?
No, DPIIT or MSME registration is not required for PMMY.
Does PMMY take equity in my business?
No, MUDRA loans are debt instruments; no equity is taken.
What documents are typically required to apply?
Standard loan documents such as identity proof, address proof, business plan, and financial statements may be required, but specifics vary by lender.
How do I apply for a MUDRA loan?
You can apply by approaching any bank, NBFC, or MFI that offers MUDRA loans. Visit the official website at www.mudra.org.in for more details.
Is collateral required for MUDRA loans?
No, MUDRA loans are collateral-free.
How much funding does Pradhan Mantri MUDRA Yojana provide?
Pradhan Mantri MUDRA Yojana provides ₹50,000 – ₹20L (range) as grant. Always confirm the exact amount and any conditions on the official site, as figures can change between cohorts.
Who offers Pradhan Mantri MUDRA Yojana?
Pradhan Mantri MUDRA Yojana is offered by Government of India, a government body. It is provided as non-dilutive funding.
More funding from Government of India
Government of India runs 3 other programs listed on startupfunds — compare them before you decide where to apply.
Alternatives to Pradhan Mantri MUDRA Yojana
Not sure Pradhan Mantri MUDRA Yojana is the right fit, or already applied? These are other grants open to Indian startups that founders shortlist alongside it.
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