The Indian government has constantly launched programmes to reduce unemployment and support entrepreneurship with financial aid. One of the most influential schemes is Pradhan Mantri Mudra Loan Yojana, which encourages aspiring business owners to take up to 10 lakh loans from banks with minimum formalities. If you are looking forward to starting or growing a business, the scheme is where you should start.
This guide is for reviewing the eligibility criteria, documentation requirements, application procedure, and salient features of the 2025 PM Mudra Loan Yojana.
PM Mudra Loan Yojana 2025 – Key Highlights
| Feature | Details |
|---|---|
| Scheme Name | PM Mudra Loan Yojana |
| Launched By | Government of India |
| Launch Date | April 8, 2015 |
| Beneficiaries | Small Business Owners & Entrepreneurs |
| Loan Amount | ₹50,000 to ₹10 Lakh |
| Official Website | https://www.mudra.org.in/ |
What is the PM Mudra Loan Yojana?
The Pradhan Mantri Mudra Yojana (PMMY) is a flagship initiative by the Central Government to provide collateral-free loans to small and micro-enterprises. Whether you want to start a new business or scale an existing one, this scheme offers financial assistance with low-interest rates and no processing fees.
PM Mudra Loan Benefits:
- No collateral required
- Competitive interest rates (10% – 12%)
- Quick and hassle-free approval process
- Supports women entrepreneurs, startups, and small traders
Types of PM Mudra Loans (2025)
Under this scheme, loans are categorized into three segments based on funding requirements:
- Shishu Mudra Loan – Covers loans up to ₹50,000 for small startups and vendors.
- Kishor Mudra Loan – Offers ₹50,000 to ₹5 lakh for growing businesses.
- Tarun Mudra Loan – Provides ₹5 lakh to ₹10 lakh for established enterprises.
Choose the category that aligns with your business needs and growth plans.
Eligibility Criteria for PM Mudra Loan
To qualify for the PM Mudra Loan Yojana 2025, applicants must meet the following conditions:
- Indian citizenship
- Minimum age of 18 years
- No existing loan defaults
- Clear business plan or existing enterprise details
This scheme is ideal for shop owners, freelancers, artisans, and small manufacturers looking for financial support.
Documents Required for PM Mudra Loan Application
Ensure you have the following documents ready before applying:
- Aadhaar Card (Identity Proof)
- PAN Card (Mandatory for loans above ₹50,000)
- Voter ID / Driving License (Address Proof)
- Bank Account Details
- Business Proof (GST registration, trade license, or ITR if applicable)
- Passport-size photograph
How to Apply for PM Mudra Loan Yojana Online (2025)
Follow these simple steps to apply for the PM Mudra Loan:
- Visit the Official Website – Go to https://www.mudra.org.in/
- Select Loan Category – Choose between Shishu, Kishor, or Tarun based on your loan requirement.
- Download the Application Form – Fill in the details accurately.
- Attach Required Documents – Submit self-attested copies.
- Submit to Nearest Bank – Visit an approved bank, NBFC, or microfinance institution.
- Loan Approval & Disbursement – After verification, the loan amount will be credited to your account.
Frequently Asked Questions (FAQs)
1. Who can apply for the PM Mudra Loan Scheme?
Any Indian citizen aged 18+ with a viable business idea or existing enterprise can apply, except for loan defaulters.
2. What is the maximum loan amount under this scheme?
You can avail up to ₹10 lakh, depending on your business stage (Shishu, Kishor, or Tarun category).
3. What is the interest rate for PM Mudra Loans?
Interest rates range between 10% – 12%, varying by lender and loan amount.
4. Is there a processing fee for the PM Mudra Loan?
No, the government has waived processing fees to encourage small businesses.
5. How long does loan approval take?
Typically, loans are processed within 7-15 days after document submission.