Pradhan mantri mudra yojana 2022

What is MUDRA Yojana

Micro Units Development and Refinance Agency (MUDRA) Loan scheme under PMMY or Pradhan Mantri Mudra Yojana is an initiative by the Government of India that offers loans to individuals and MSMEs with the help of banks and NBFCs. MUDRA Yojana is offered under 3 loan schemes, named Shishu, Kishor, and Tarun. Loans offered by banks under the Mudra scheme are collateral-free.



Features of Mudra Loan

Types of Mudra Schemes Shishu, Kishor, and Tarun

Loan Amount

Under Shishu Scheme: Up to Rs. 50,000

Under Kishor Scheme: Rs. 50,001 – Rs. 5,00,000

Under Tarun Scheme: Rs. 5,00,001 – Rs. 10,00,000

Interest Rates As per the applicant’s profile and business requirements

Processing Charges Nil, or 0.50% of the loan amount

Collateral/Security Not required by Banks/NBFCs

Repayment Tenure From 12 months to 5 years



Benefits of Mudra Loan

Loan amount up to Rs. 10 lakh

Collateral-free loans

Low interest rates with even lower processing fees

Loan covered under Credit Guarantee Schemes from Govt. of India

Can be used as term loans, working capital loans, and overdraft facilities

All Non-farm enterprises, i.e. small or micro firms engaged in the income-generating activities can avail Mudra loans

Mudra loans can also be availed by people belonging to SC/ST category at concessional interest rates

Loans for Women Entrepreneurs at lower interest rates

How to Apply for Mudra Loan?

The application form is available at, so you can download the form and fill in all the required details. Different banks may have slightly different application procedures. You must visit the nearest branch of the desired bank from where you want to get the Mudra loan and submit the duly filled application form and complete the bank formalities.


Documents required

Duly filled application with passport-sized photographs

KYC documents of Applicant and Co-applicants: Passport, Voter’s ID card, Aadhar Card, Driving License, PAN card, Utility Bills (Water/Electricity Bills)

Proof of belonging to a special category, such as SC, ST, OBC, Minority, etc. (if applicable)

Last 6 months’ bank statement

Business address and tenure proof, if applicable

Any other documents required by the bank or NBFC



List of Businesses covered under Mudra Scheme

List of businesses that are covered under the Mudra scheme to perform income-generating activities are mentioned below:


Commercial Vehicle: Mudra finance for machinery and equipment can be used to purchase commercial transport vehicles like tractors, auto-rickshaws, taxis, trollies, tillers, goods transports vehicles, 3-wheelers, e-rickshaws, etc.

Service Sector Activities: Starting businesses of salons, gyms, tailoring shops, medical shops, repair shops, and dry cleaning and photocopying shops, etc.

Food and Textile Product Sector Activities: Various activities involved in the respective sector, such as papad, achaar, ice cream, biscuits, jam, jelly, and sweets making, as well as for agriculture produce preservation at rural level

Business activities for Traders and Shopkeepers: Setting up shops, service enterprises, trading and business activities, and non-farm income-generating activities

Equipment Finance Scheme for Micro Units: Maximum loan up to Rs. 10 lakh

Agri-allied Activities: Activities related to businesses in agri-clinics and agribusiness centers, food & agro-processing units, poultry farming, pisciculture, beekeeping, sorting, livestock-rearing, grading, aggregation agro-industries, dairy, fishery, etc.



Leave A Reply

Your email address will not be published.