The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme launched by the Government of India to promote self-employment and small businesses. In 2025, the government has restarted fresh online applications for Mudra Loans of up to ₹10 lakh, making it easier for small entrepreneurs, street vendors, women, and micro enterprises to get financial support.
Whether you’re planning to start a new business or expand an existing one, PM Mudra Loan Yojana can be a game-changer.
In this blog, we cover everything you need to know — from loan types and eligibility to the step-by-step online application process.
🏦 What is PM Mudra Loan Yojana?
Launched in April 2015 under Micro Units Development and Refinance Agency (MUDRA), this scheme offers collateral-free business loans to non-corporate, non-farm small/micro enterprises.
🔹 Key Objectives:
- Empower small business owners
- Provide financial assistance without guarantors
- Encourage job creation and economic inclusion
💸 Types of Mudra Loans
PMMY is categorized into three loan segments depending on the stage of the business:
| Category | Loan Amount | Suitable For |
|---|---|---|
| Shishu | Up to ₹50,000 | Start-ups, early-stage businesses |
| Kishor | ₹50,001 – ₹5 Lakh | Businesses in development phase |
| Tarun | ₹5 Lakh – ₹10 Lakh | Established businesses looking to expand |
🧾 Eligibility Criteria for Mudra Loan 2025
To apply for a PM Mudra Loan, the applicant must meet the following conditions:
- Age: 18–65 years
- Citizenship: Indian citizen
- Should be involved in:
- Manufacturing
- Trading
- Services
- Agriculture-based activities
- No default history with any bank
- Must have a business plan
📑 Documents Required
Here’s a list of documents required for applying under PM Mudra Yojana:
- Identity Proof – Aadhaar Card, Voter ID, PAN Card
- Address Proof – Aadhaar, utility bill, rental agreement
- Business Proof – GST certificate, registration, Udyam Certificate (if available)
- Bank Statement – Last 6 months
- Passport-size photographs
- Quotation or invoice for machinery, equipment (if applying for expansion)
🌐 How to Apply for PM Mudra Loan Online – Step-by-Step
You can apply for the loan both online and offline. Here’s how to apply online in 2025:
✅ Step 1: Visit Your Bank’s Website
PMMY loans are offered by most banks including:
- SBI, PNB, Canara Bank, Bank of Baroda
- HDFC, ICICI, Axis Bank
- Regional rural banks (RRBs)
- NBFCs and micro-finance institutions
Log in to the official website of your preferred bank.
✅ Step 2: Select “Apply for PM Mudra Loan”
Navigate to the loan section and select Mudra Loan under business loans. You will be redirected to an online application form.
✅ Step 3: Fill Out the Application Form
Enter details such as:
- Full Name
- Aadhaar and PAN number
- Business Type
- Address and contact details
- Desired loan amount (Shishu/Kishor/Tarun)
- Purpose of the loan
✅ Step 4: Upload Documents
Scan and upload all required documents. Ensure clear visibility and correct file formats (PDF/JPEG).
✅ Step 5: Submit the Form and Await Approval
After form submission:
- A reference number will be generated
- You may be contacted for physical verification or further clarification
- If approved, the loan is usually credited within 7–15 working days
📝 Offline Application Method
If you prefer to apply offline:
- Visit the nearest bank branch or Common Service Centre (CSC)
- Ask for the PM Mudra Loan application form
- Fill it, attach photocopies of documents
- Submit to the bank official for processing
🧠 Important Features of PM Mudra Loan
- No collateral required
- Interest rates starting from 7.30% per annum (may vary by bank)
- Repayment tenure: Up to 5 years
- No processing fee for Shishu loans
- Option for EMI-based repayment
👩🎓 Special Focus: Mudra for Women Entrepreneurs
Under PMMY, there are special provisions for women including:
- Concessional interest rates
- Faster approvals
- Higher preference for loan processing
Schemes like Mahila Udyam Nidhi, Stand-Up India, and Dena Shakti work in tandem with PMMY.
✅ Benefits of PM Mudra Loan Yojana 2025
- Boosts self-employment
- Helps start or expand business without credit history
- Simplified documentation and fast processing
- Widely available across India through over 300+ banks and MFIs
🙋 Frequently Asked Questions (FAQs)
Q1: Is a CIBIL score required for PM Mudra Loan?
Not mandatory for Shishu or Kishor loans, but good credit history improves chances for Tarun category loans.
Q2: Can I apply without a business registration?
Yes, for small traders or vendors, minimal documentation is accepted, especially under Shishu loans.
Q3: Is there any subsidy under Mudra Loan?
No direct subsidy, but interest rates are subsidized for some categories, especially for women and SC/ST applicants.
Q4: Can I apply for a second Mudra loan?
Yes, if the first loan is repaid successfully, you can apply again, or move from Shishu to Kishor, or Kishor to Tarun.
🏁 Final Words
The PM Mudra Loan Yojana 2025 is a golden opportunity for budding entrepreneurs, small business owners, and self-employed individuals to access capital without the burden of collateral or complicated procedures. Whether you are a shopkeeper, tailor, beautician, mechanic, or food stall owner, this scheme can support your journey toward financial independence.
Apply today, and take your first step toward becoming a self-made success story.
Leave a Comment