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Empowering Entrepreneurs: A Guide to Pradhan Mantri Mudra Yojana (PMMY)

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  • Post published:December 15, 2023
  • Post category:General


Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana (PMMY) is a cornerstone in the government’s efforts to foster self-employment and entrepreneurship in India. This flagship scheme offers collateral-free institutional credit of up to ₹10 lakh through various Member Lending Institutions (MLIs) such as Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies, and Micro Finance Institutions (MFIs). This article delves into PMMY’s eligibility criteria, benefits, and application process.

Pradhan Mantri Mudra Yojana: Eligibility Criteria

To take advantage of PMMY, aspiring entrepreneurs must fulfil the following eligibility criteria:

  1. Indian Citizenship: Applicants must be citizens of India.
  2. Business Plan: Individuals eligible for loans should have a well-thought-out business plan for a small business enterprise. These loans are available for income-generating activities in manufacturing, trading, and services sectors and activities allied to agriculture.
  3. Loan History: Applicants should not have a history of loan default, ensuring a clean financial record.
  4. Business Age: The applicant’s business must be operational for at least three years.
  5. Age Group: Entrepreneurs falling in the age group of 24 to 70 years old are eligible to apply.

Pradhan Mantri Mudra Yojana: Benefits

PMMY provides three distinct types of loans, catering to the diverse needs of entrepreneurs:

  1. Shishu: Designed for small-scale enterprises, Shishu offers loans up to ₹50,000.
  2. Kishore: Entrepreneurs requiring higher capital can opt for Kishore, which provides loans above ₹50,000 and up to ₹5 lakhs.
  3. Tarun: Tarun offers loans above ₹5 lakhs and up to ₹10 lakhs for substantial business expansion.

Existing small businesses can also benefit from credit facilities at reasonable interest rates, facilitating the expansion of their operations and contributing to economic growth.

Pradhan Mantri Mudra Yojana: How to Apply Online?

Applying for PMMY is a straightforward process. Follow these steps:

  1. Visit the official website at
  2. Click on the ‘Apply Now’ option on the Home Screen.
  3. Choose from the options provided: ‘New Entrepreneur,’ ‘Existing Entrepreneur,’ or ‘Self-Employed.’
  4. For new registrations, input the ‘Name of the Applicant,’ ‘Email ID,’ and ‘Mobile Number.’
  5. Generate OTP and complete the registration process.

Government Initiatives and Awareness:

The government has proactively spread awareness about PMMY throughout the country. These initiatives include:

  • Publicity campaigns through print media, TV, radio jingles, hoardings, and town hall meetings.
  • Financial literacy and awareness camps.
  • Special drives for financial inclusion.
  • Awareness programs facilitated by MLIs, including Scheduled Commercial Banks and Micro Finance Institutions.


Pradhan Mantri Mudra Yojana is a catalyst for transforming entrepreneurial dreams into reality. The scheme empowers individuals to establish and expand their businesses by providing easy access to credit. Aspiring entrepreneurs are encouraged to explore the opportunities PMMY presents, contributing not only to their personal growth but also to the nation’s overall economic development.


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