Pradhan Mantri MUDRA Yojana, PMMY

Purpose:

PMMY provides institutional credit for income-generating micro and small enterprises in the non-corporate, non-farm sector. Eligible activities include manufacturing, trading, services and activities allied to agriculture, such as poultry, dairy and beekeeping. Assistance can be structured as a term loan, working-capital facility, overdraft or composite loan.
web.umang.gov.in,
jansamarth.in

Key documents:

Documents vary by bank, applicant type and loan amount. Commonly requested documents include: completed loan application; Aadhaar, PAN, voter ID, driving licence or other identity proof; current address proof; photographs; business address and ownership/lease proof; quotation for machinery, vehicle or equipment; project report/business plan; expected sales and cash-flow estimates; bank statements, commonly for the previous six months; income-tax returns and financial statements for an existing business; Udyam registration, GST registration, licences or trade registrations where applicable; partnership deed, LLP agreement, memorandum/articles of incorporation documents for entities; and category certificates if concession or priority consideration is claimed. mudra.org.in,

Relevant Government Reference / Government Resolution / Orders / Circulars

PMMY was launched by the Government of India on 8 April 2015. The scheme operates through guidelines and circulars issued by the Department of Financial Services, MUDRA Ltd., RBI, NCGTC and participating lenders. Tarun Plus was introduced with effect from 24 October 2024, increasing the maximum facility to ₹20 lakh for borrowers who have successfully repaid an earlier Tarun loan. The credit-guarantee mechanism is linked to the Credit Guarantee Fund for Micro Units, CGFMU, operated through NCGTC. jansamarth.in

Online Facility Available

Available throughout India. Applicants may approach participating lenders or use the JanSamarth digital portal. Availability at a particular lender depends on its PMMY participation, loan policy, branch coverage and the applicant’s credit and project assessment.
mudra.org.in, jansamarth.in

Applicable Fee

PMMY does not prescribe one uniform processing fee for every lender. Banks and other lending institutions may charge an upfront or processing fee according to their internal policies. Processing charges for Shishu loans up to ₹50,000 are waived by most banks. The applicable interest rate is determined by the lender under its board-approved policy and RBI guidelines. JanSamarth states that its portal does not ask applicants to make any payment for submitting an application. web.umang.gov.in,
jansamarth.in

Mode of Fee Payment

If the selected lender levies a legitimate processing, documentation or statutory charge, it should be paid directly to the bank, NBFC or MFI through its authorized channel and against an official receipt. No amount should be paid to an agent or middleman. MUDRA has expressly stated that it has not appointed agents or intermediaries for sanctioning PMMY loans.
web.umang.gov.in,
mudra.org.in

Decision-Making Authority

Micro Units Development and Refinance Agency Limited, MUDRA Ltd. MUDRA Ltd. is primarily a refinancing and development institution. It does not normally lend directly to individual entrepreneurs. PMMY loans are sanctioned and disbursed by Member Lending Institutions such as public- and private-sector banks, foreign banks, Regional Rural Banks, Small Finance Banks, cooperative banks, Non-Banking Financial Companies and Microfinance Institutions. [mudra.org.in], [financials…ces.gov.in] Important Eligibility Conditions Eligible borrowers: Individuals, proprietorship concerns, partnership firms, private limited companies, public companies and other eligible legal entities may apply, subject to the
lender’s credit policy. web.umang.gov.in,
jansamarth.in; Department of Financial Services, Ministry of Finance, Government of India. jansamarth.in

Time Required for Decision

There is no single guaranteed sanction period applicable to all lenders and all loan amounts. Processing time depends on loan category, completeness of documents, credit history, project viability, field verification, lender appraisal and guarantee formalities. JanSamarth provides digital processing and online tracking, but final sanction and disbursement are undertaken by the lender. Applicants should obtain an acknowledgement or application reference number and track the case with the selected branch or through the portal.

Online Grievance Redressal Link

First submit the complaint to the concerned lender using its grievance-redressal system. A JanSamarth application-related grievance can be filed through the Grievances facility on the JanSamarth portal. If a complaint against an RBI-regulated bank or NBFC is not satisfactorily resolved, the customer may approach RBI through the Complaint Management System:
cms.rbi.org.in, Under the Reserve Bank Integrated Ombudsman Scheme 2026, the CMS process is cost-free and covers eligible complaints involving deficiency in service by covered regulated entities. rbi.org.in

Contact Us

Beneficiary:

As mentioned above

Benefits:

Loans are available under four categories: Shishu, up to ₹50,000; Kishore, above ₹50,000 and up to ₹5 lakh; Tarun, above ₹5 lakh and up to ₹10 lakh; and Tarun Plus, above ₹10 lakh and up to ₹20 lakh for entrepreneurs who have successfully repaid an earlier Tarun loan. PMMY loans are collateral-free, although the lender generally creates a charge over assets purchased or created from the loan. Both capital expenditure and working-capital requirements can be financed.