PM Mudra Yojana: Govt Offering Up to ₹20 Lakh Loan – Here’s How You Can Apply

The Pradhan Mantri Mudra Yojana (PMMY) is one of the Indian government’s most impactful initiatives aimed at empowering aspiring entrepreneurs and small business owners. Originally launched in 2015, this scheme provides collateral-free loans to help individuals either start or expand their businesses. On April 8, Prime Minister Narendra Modi once again engaged with beneficiaries to highlight the real-world success stories made possible through this scheme.

If you’re an entrepreneur or someone with a business idea and in need of funding, this guide covers all you need to know to benefit from the PM Mudra Yojana.

What is PM Mudra Yojana?

The PM Mudra Yojana provides financial support to micro and small enterprises without requiring any collateral. Initially offering up to ₹10 lakh, the loan cap has now been extended to ₹20 lakh under a new category.

The scheme has four categories based on loan amount:

These loans are available at low interest rates and with flexible repayment terms, making them especially beneficial for small-scale business owners, women entrepreneurs, artisans, vendors, and startup founders.

Who Can Apply for Mudra Loan?

You can apply if you:

• Want to start a new business or expand your existing business.

• Are involved in small manufacturing, trading, artisan work, food processing, retail, or service-based businesses.

• Are not a defaulter in any bank.

• Are aged between 18–65 years.

There is no requirement for collateral, and the scheme also benefits women entrepreneurs, with many banks offering concessional interest rates.

How to Apply for a Mudra Loan?

You can apply through:

• Public Sector Banks

• Private Banks

• NBFCs (Non-Banking Financial Companies)

• MFIs (Micro Finance Institutions)

• Regional Rural Banks (RRBs)

Step-by-Step Application Process:

1. Visit the nearest bank (government or private) that participates in the Mudra Yojana.

2. Collect and fill the PMMY application form.

3. Submit the following documents:

   • Aadhar card & PAN card

   • Business address and identity proof

   • Proof of income and business plan

4. Mention the loan category (Shishu, Kishor, Tarun, or Tarun Plus).

5. Submit the form and await loan processing and approval.

Loans are generally processed within 7–10 working days, depending on the bank and the type of loan.

Key Features & Benefits:

• No collateral required.

• Low processing fees.

• Flexible repayment with EMI-based options.

• Encourages self-employment and economic inclusion.

• Special focus on women, SC/ST, and rural entrepreneurs.

Where to Check More Details:

• Track your application via bank branches or portals.

• Access additional support through the Udyam Registration portal for MSMEs.