Pradhan Mantri Mudra Yojana : PM Modi

Pradhan Mantri Mudra Yojana : PM Modi

Pradhan Mantri Mudra Yojana (PMMY) is a government-backed scheme launched by Prime Minister Narendra Modi on April 8, 2015. The scheme aims to provide loans up to Rs.10 lakh to non-corporate, non-farm small and micro enterprises (SMEs). The loans are provided by banks, NBFCs, and other financial institutions.

Scheme has three categories of loans:

  • Shishu: Loans up to Rs.50,000 for new and small businesses.
  • Kishore: Loans between Rs.50,000 and Rs.5 lakh for growing businesses.
  • Tarun: Loans for established businesses between Rs.5 lakh and Rs.10 lakh.

The government subsidizes the interest rates on PMMY loans. Notably, the interest rate on Shishu loans is 10.50%, while for Kishore loans, it stands at 11.50%, and for Tarun loans, it’s 12.50%.

Furthermore, the scheme has achieved tremendous success. As of December 2022, over 130 million loans have received approval under PMMY, amounting to over Rs.11 trillion. Undoubtedly, the scheme has played a significant role in creating millions of jobs and boosting economic growth.

Additionally, PM Modi has been a staunch advocate for PMMY. He frequently emphasizes the importance of SMEs in the Indian economy and the necessity to provide them with access to credit. He has consistently praised the remarkable success of the scheme.

In a speech in 2016, PM Modi said, “PMMY has changed the face of India’s SME sector. It has given wings to the dreams of millions of entrepreneurs. It has created millions of jobs and boosted economic growth.”

PMMY is a landmark scheme that has significantly impacted the Indian economy. It has helped to create millions of jobs, boost economic growth, and empower millions of entrepreneurs. The scheme is a testament to the vision and leadership of PM Modi.

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Key Features of PMMY:

  • The scheme is open to all small and micro-enterprises in India, regardless of sector or location.
  • The loans are provided at competitive interest rates and with flexible repayment terms.
  • The loans can be used for various purposes, including working capital, equipment purchase, and business expansion.
  • The scheme provides a range of support services to borrowers, including training, marketing assistance, and access to government procurement opportunities.

Eligibility criteria for Pradhan Mantri Mudra Yojana loans:

The following are the eligibility criteria for PMMY loans:

  • The loanee must be a citizen of India
  • The loanee must be engaged in a non-corporate, non-farm business
  • The loan amount must be ₹10 lacks or less

Benefits of PMMY:

There are many benefits to taking a PMMY loan. These include:

  • Access to credit: PMMY loans are designed to make it easier for small and micro enterprises to access credit. This can help them to grow their businesses and create jobs.
  • Subsidized interest rates: The interest rates on PMMY loans are subsidized by the government. This can save borrowers money and make it easier to repay their loans.
  • Flexible repayment terms: PMMY loans can be repaid over up to 5 years. This gives borrowers more flexibility and makes it easier for them to manage their cash flow.
  • Government support: The government provides support to PMMY borrowers through a number of channels, including training, mentoring, and access to markets.

How to apply for a Pradhan Mantri Mudra Yojana loan:

To apply for a PMMY loan, you can visit your nearest bank or NBFC. Initially, you will need to provide some basic information about your business, such as your name, address, and PAN number. Additionally, you will need to provide information about your business plans, including your products or services, your target market, and your financial projections.

Subsequently, the bank or NBFC will review your application and decide whether to approve it. If your application is approved, you will be given a loan agreement. Consequently, you will need to sign the loan agreement and repay the loan according to the terms of the agreement.


PMMY is a great opportunity for small and micro enterprises to access credit and grow their businesses. If you are thinking about starting a business or expanding your existing business, you should consider applying for a PMMY loan.

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