The Pradhan Mantri Mudra Yojana (PMMY) has completed its 10 years on 8 April 2025, and on this occasion Prime Minister Narendra Modi interacted with the beneficiaries of the scheme. The scheme was launched with the aim of promoting self -employment and providing financial assistance to small entrepreneurs
The purpose and development of the scheme
The main objective of PMMY is to provide financial assistance to micro, small and medium enterprises (MSME), so that they can start or expand their business. Under this scheme loan is provided without any guarantee, which helps entrepreneurs to connect with the banking system.
Loans categories
The loan under the scheme is divided into four categories:
Shishu: Loan up to ₹ 50,000, which is for those starting business at a small level.
Kishore: A loan ranging from ₹ 50,001 to ₹ 5 lakhs, who want to expand their business
Tarun: A loan ranging from ₹ 5 lakh to ₹ 10 lakh, which wants to increase the business further.
Tarun Plus: Loans ranging from ₹ 10 lakh to ₹ 20 lakh, which have successfully repaid Tarun category loans and want to expand their business further.
This growth is particularly beneficial for emerging entrepreneurs, which will help them in growth and expansion.
There are the following eligibility criteria to apply for loan under PMMY
The age of the applicant should be between 18 and 65 years.
The applicant should be an Indian citizen.
The applicant should not default by taking a loan from the bank.
The applicant must have the educational qualification required to start a business.
For the application process, the applicant will have to go to his nearest bank, NBFC, or Micro Finance Institute and submit the necessary documents. Applicant for online application www.udyamimitra.in Can go on
Required documents
The following documents are required for application:
Identification proof (Aadhaar Card, PAN Card, Driving License, Passport, Voter ID card)
Residence proof (electricity bill, water bill, telephone bill, bank account details)
Documents related to business (industry base, license, registration certificate) passport size photo
Interest rate and repayment period
The interest rate depends on the bank’s policy, but usually it ranges between 8% to 12%. The repayment period depends on the loan amount
Maximum 5 years for loans up to ₹ 5 lakh.
Maximum 7 years for loans ranging from ₹ 5 lakh to ₹ 20 lakh.
Plan success
In the last 10 years, loans of more than Rs 33 lakh crore have been distributed under PMMY, which has benefited more than 53 crore people. Under this scheme, more than 70% of beneficiaries are women, which is an important step towards women empowerment.
conclusion
The Pradhan Mantri Mudra Yojana has played an important role in promoting self -employment in the country and providing financial assistance to small entrepreneurs. Under this scheme, loans are provided without guarantee, which helps entrepreneurs to start or expand their business. Applicants are advised to keep all the necessary documents ready before applying for the loan under the scheme and complete the application process correctly.
