Everything you need to know about PM Mudra Yojana 2024. Learn about Shishu, Kishor, and Tarun loan categories, eligibility, documents required, and how to apply online or at your nearest bank.
PM Mudra Yojana 2024: Your Complete Guide to Mudra Loans
PM Mudra Yojana (PMMY), launched on April 8, 2015, by Prime Minister Narendra Modi, is a flagship government scheme that provides micro-credit to small businesses that are not able to access credit from mainstream financial institutions. The word "MUDRA" stands for Micro Units Development and Refinance Agency.
What is PM Mudra Yojana?
Pradhan Mantri Mudra Yojana provides financial assistance to micro and small businesses in the non-farm sector. Under this scheme, loans are classified into three categories based on the stage of business development and funding needs:
Three Categories of Mudra Loans
1. Shishu (शिशु) - Infant Stage
- Loan Amount: Up to ₹50,000
- Interest Rate: 1% to 12% per annum (depending on lender)
- Target: Businesses in their early stages or yet to start
- Collateral: Not required
- Repayment Period: Up to 5 years
- Best For: Street vendors, small shopkeepers, roadside mechanics, beauticians, artisans
2. Kishor (किशोर) - Adolescent Stage
- Loan Amount: ₹50,001 to ₹5 Lakh
- Interest Rate: 8% to 14% per annum
- Target: Established businesses seeking expansion
- Collateral: May be required for higher amounts
- Repayment Period: Up to 5 years
- Best For: Small grocery shops, tailoring units, food stalls, beauty parlors, small manufacturing units
3. Tarun (तरुण) - Youth Stage
- Loan Amount: ₹5 Lakh to ₹10 Lakh
- Interest Rate: 10% to 16% per annum
- Target: Well-established businesses with expansion plans
- Collateral: Required in most cases
- Repayment Period: Up to 7 years
- Best For: Established SMEs, service providers, traders, small manufacturers
Eligibility for PM Mudra Yojana
- Indian citizens aged 18 to 65 years
- Self-employed individuals, proprietors, partnership firms, and small companies
- Business must be in the non-farm sector (manufacturing, trading, or services)
- No requirement of any specific credit score for Shishu loans
- The business should not be defaulting on any existing loan
- Both new and existing businesses can apply
Documents Required for Mudra Loan
- Completed Mudra loan application form
- Identity Proof: Aadhaar Card, Voter ID, Driving License, or Passport
- Address Proof: Utility bills, Aadhaar, or rent agreement
- Recent passport-size photographs (2 copies)
- Business address proof
- Bank account statements for last 6 months
- Business registration certificate (if available)
- Quotation for machinery or equipment being purchased
- SC/ST/OBC certificate (if applicable, for priority processing)
How to Apply for Mudra Loan Online
- Visit the official Mudra website: mudra.org.in or mudramitra.in
- Find your nearest Mudra-empaneled bank, NBFC, or MFI
- Download the Mudra loan application form (Shishu/Kishor/Tarun)
- Fill out the form with accurate business and personal details
- Attach all required documents
- Submit the application at your nearest branch or submit online
- Bank will process the application and communicate within 7-10 working days
Banks and Institutions Providing Mudra Loans
Over 27 public sector banks, 17 private sector banks, 36 MFIs, and 25 NBFCs are empaneled under PMMY including:
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- Bank of Baroda
- HDFC Bank
- ICICI Bank
- Axis Bank
- Bandhan Bank
- Microfinance Institutions (MFIs)
Mudra Loan Success Stories
Since its launch in 2015, PM Mudra Yojana has disbursed over ₹23 lakh crore to more than 40 crore accounts. The scheme has been especially beneficial for:
- Women entrepreneurs (68% of Mudra beneficiaries are women)
- SC/ST/OBC communities (over 50% beneficiaries)
- Rural entrepreneurs without formal credit history
Frequently Asked Questions
Q: Can a salaried person apply for a Mudra loan?
A: Mudra loans are designed for self-employed and business owners, not salaried individuals. However, if you plan to start a business alongside your job, you may be eligible.
Q: What is the Mudra Card?
A: A Mudra Card is a type of debit/credit card provided with working capital loans under PMMY. It allows borrowers to withdraw money as per their working capital requirement, reducing interest costs.
Q: Can I apply for Mudra loan online?
A: Yes, many banks now accept online Mudra loan applications through their internet banking portals. You can also apply through the mudramitra.in portal to find the nearest lender.
Conclusion
PM Mudra Yojana is one of the most accessible and successful financial inclusion initiatives in India. Whether you are a first-time entrepreneur with a small venture or an established business owner looking to expand, there is a Mudra loan category designed just for you. Take the first step today and visit your nearest bank to begin your application.