Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India launched in April 2015 to provide loans up to ₹10 lakh to micro and small enterprises engaged in the non-farm sector. The scheme is implemented by the NBFC, Micro Units Development and Refinance Agency (MUDRA).

Pradhan Mantri Mudra Yojana (PMMY): Benefits, Eligibility & Key Features

Pradhan Mantri Mudra Yojana (PMMY)

Under this yojana PMMY, loans are provided under three categories. Read carefully:

  • Shishu (loans amount  up to ₹50,000)
  • Kishore (loans amount between ₹50,000 and ₹5 lakh)
  • Tarun (loans amount between ₹5 lakh and ₹10 lakh)

PMMY loans can be used for a variety of purposes, including:

  • Starting a new business
  • Expanding an existing business
  • Purchasing machinery and equipment
  • Working capital

PMMY loans are available to a wide range of borrowers, including:

  • Individuals
  • Proprietorships
  • Partnerships
  • Private limited companies

PMMY loans are provided by a variety of financial institutions, including banks, non-banking financial companies (NBFCs), and microfinance institutions (MFIs). Must read: Pradhan Mantri Swasthya Suraksha Yojana

Benefits of PMMY

PMMY offers a number of benefits to borrowers, including:

  • Collateral-free loans: PMMY loans are collateral-free, which means that borrowers do not need to pledge any assets to obtain a loan.
  • Low interest rates: PMMY loans are offered at low interest rates, which makes them affordable for borrowers.
  • Flexible repayment terms: PMMY loans offer flexible repayment terms, which allows borrowers to repay the loan at their own pace.
  • Quick processing: PMMY loans are processed quickly, which allows borrowers to access funds quickly.

Impact of PMMY

PMMY has had a significant impact on the micro and small enterprise sector in India. As of March 2023, more than 370 million loans have been disbursed under PMMY, with a total value of over ₹32 lakh crore. The scheme has helped to create and sustain millions of jobs in the micro and small enterprise sector.

PMMY has also helped to promote financial inclusion in India. By providing loans to micro and small enterprises, PMMY has helped to bring these businesses into the formal financial system. This has helped to increase the access of micro and small enterprises to financial services.

Overall, PMMY is a successful scheme that has had a positive impact on the micro and small enterprise sector in India. The scheme has helped to create and sustain millions of jobs, promote financial inclusion, and boost economic growth.

Disclaimer: Our website ( is not a government run website, nor does it have anything to do with any government ministry. This blog is run by a special person who is interested in government schemes and wants to tell others about it. We try our best to provide accurate information to our readers, but despite our best efforts, the possibility of error cannot be ruled out. We always recommend to check and read the official website. If you find any mistake in any article, you are requested to please inform us and we will make changes.

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