Micro finance
MUDRA / PMMY - Pradhan Mantri MUDRA Yojana
PMMY (MUDRA) loans for non-farm micro and small enterprises: understand Shishu, Kishor, and Tarun stages, typical ticket sizes, and documents. Ideal for traders, vendors, and service micro-units seeking affordable credit.
Important: Scheme limits, subsidy rates, and eligibility change with government notifications. Banks and agencies make final decisions. Use this page as a structured overview - not legal or financial advice.
Overview
Pradhan Mantri MUDRA Yojana (PMMY) supports micro enterprises through refinancing and last-mile lending partners. Businesses often start with Shishu for the smallest needs and move up as cash flows stabilise. We help you pick the right stage, prepare a clean application, and align KYC with lender expectations.
At a glance
- Three products: Shishu (smallest ticket), Kishor (mid), Tarun (higher band)
- Delivered through banks, MFIs, NBFC-MFIs as per PMMY guidelines
- For non-corporate small business / MUDRA borrower categories
Typical eligibility signals
- Micro / small business need (non-agriculture income-generating activity in most cases)
- No default history that disqualifies per lender policy
- Identity, address, business proof, and bank account
- Where applicable, Udyam / shop establishment as supporting evidence
Why businesses pursue this route
- Designed for first-time and informal-to-formal transitions
- Competitive pricing relative to informal money markets when sanctioned
- Can strengthen credit history for larger facilities later
- Wide network of lending institutions for last-mile access
Official resources
Always verify circulars on the official portal - programme parameters are updated periodically.
How StartupStambh supports you
- 1
Need assessment
We map ticket size to Shishu / Kishor / Tarun and pick partner institutions.
- 2
Application pack
Application form, projections (if asked), and clean KYC set.
- 3
Submission & queries
Branch-level follow-up for queries and sanction.
- 4
Next stage planning
Once stable, evaluate WC / CGTMSE / other programs for scale.
Frequently asked questions
What is the maximum MUDRA loan?
PMMY is structured in stages; upper bands for Tarun are subject to current RBI / scheme circulars. We confirm the applicable cap with your chosen lender.
Can a Private Limited company take PMMY?
PMMY primarily targets micro enterprises / MUDRA borrower definitions. Corporate structures may need other products - we advise after reviewing your entity and activity.
Is collateral required?
PMMY emphasises funding micro units without immovable collateral for eligible cases - final terms depend on the lending institution.
Related schemes
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