Pradhan Mantri MUDRA Yojana : How to apply for a Business Loan under PMMY?

I have been receiving lot of queries on Pradhan Mantri MUDRA Yojana (PMMY) or MUDRA Bank. Many blog readers have been asking for information on loan application procedure, whom to approach for assistance and which banks / financial institutions are offering loans under PMMY scheme.

In his last Budget speech (2015-2016), Finance Minister Arun Jaitley proposed to set up a ‘Micro Units Development Refinance Agency (MUDRA Bank)with a corpus of Rs 20,000 crore. On 8th April, 2015 Prime Minister Narendra Modi launched MUDRA Yojana.

Since then many banks and financial institutions have been offering business loans to sole-proprietors or entrepreneurs of Small & Medium Enterprises under PMMY scheme. It is estimated that Banks may disburse loans worth Rs 1.22 Lakh crore under PM Mudra Yojana by end of this fiscal.

In this post let us understand – What are the types of loans offered under PMMY? How to apply for loans under on Pradhan Mantri MUDRA Yojana? What are the required documents for processing of loans under MUDRA scheme? What are the contact numbers for Mudra Bank Loans?

How to avail Business Loans under Pradhan Mantri MUDRA Yojana ?

As of now Mudra Bank is not a full fledged banker. In future this will be converted into a full-fledged one. Currently it is offering Refinancing services only.

So whom to approach for assistance under PMMY scheme? You can approach any of the following lending institutions in your respective regions to apply for loans under MUDRA Yojana.(Picture courtesy Mudra.org.in)Pradhan Mantri MUDRA Yojana how to apply for mudra loan

Following are the lending institutions;

  • Scheduled Commercial Banks (Public / Private Banks)
  • Regional Rural Banks (RRBs)
  • Scheduled Urban Co-operative Banks
  • State Co-operative Banks
  • Micro Financial Institutions – MFIs (like NBFCs, Societies, Trusts etc.,)Mudra Yojana MFIs list for loans

MUDRA has enrolled 27 Public Sector Banks, 17 Private Sector Banks, 27 Regional Rural Banks and 25 Micro Finance Institutions as partner institutions for channelizing Loan assistance to the end borrower.

Sanction of assistance shall be as per the eligibility norms of respective lending institution. The loan will be released to undertake small business activities / micro enterprise.

These lending institutions will then approach MUDRA Bank for financial assistance or for refinancing of the sanctioned loans.

Types of Loans under Pradhan Mantri MUDRA Yojana (PMMY)

It has been proposed to fund the business units based on the stage of growth or funding needs of an entrepreneur or a micro unit.

  • Under ‘Shishu’ Scheme, loans up to Rs 50,000 will be sanctioned. This is the first stage when the business is just starting up. (Click on the below image to download Shishu loan application form)Pradhan Mantri MUDRA Yojana loan application form
  • Under ‘Kishor’ Scheme, loans above Rs 50,000 and up to Rs 5 Lakh will be provided.
  • Under ‘Tarun’ category, loan of above Rs 5 Lakh and up to Rs 10 Lakh will be sanctioned.

Key features of Shishu loan are;

  • No collateral is required
  • No loan processing fee
  • Rate of interest is 1% per month
  • Repayable in maximum period extended up to 5 years
  • Working capital loans will be given through MUDRA cards.Mudra Card

(Mudra Cards are issued by a bank or in association with MFI. It is issued as ‘RuPay’ Debit card. Cash can be withdrawn from any ATM.)

For details regarding loans above Rs 50,000 under PMMY, you may have to contact your nearest bank branch.

Checklist for loans under Pradhan Mantri MUDRA Yojana

Following are the documents that are to be submitted along with the MUDRA loan application form;

  • Self-attested Proof of Identity (Voter ID / Driving license / Aadhar card / Passport etc.,).
  • Proof of Residence (Recent telephone bill / electricity bill / Voter Id / Aadhar card / Bank statement / Passport etc.,).
  • Loan applicant’s recent Photograph (2 copies).
  • Quotation of Machinery / other items to be purchased (if any).
  • Name of supplier / details of machinery / price of machinery and / or items to be purchased.
  • Proof of Identity / Address of Business Enterprise, copies of relevant Licenses / Registration Certificates / other documents pertaining to the ownership identity and address of business unit (if any).
  • Proof of category like SC / ST / OBC / Minority etc., (if applicable).

MUDRA Bank Helpline / Contact numbers

If you wish to avail assistance under Pradhan Mantri MUDRA Yojana (PMMY), youcan approach the local branch of any of the above referred institutions in your region.

For information on MUDRA products and for any kind of assistance, the borrower can either approach/contact MUDRA office at Mumbai or the identified MUDRA Nodal Officers.MUDRA officers contact details

MUDRA has identified 97 Nodal Officers at various SIDBI Regional offices/Branch Offices to act as “first contact persons” for loans under MUDRA scheme.

The borrower may also visit MUDRA website, mudra.org.in and can send any query/suggestion to help@mudra.org.in.


Latest Update (26-Feb-2016) :Till 12th February, 2016, the loans extended are as follows:

CategoryNo. of borrowers
Shishu2,50,54,052
Kishore16,53,010
Tarun2,93,566
Total2,70,00628

Out of the total disbursement of Rs. 99, 467 crore as on 12th February, 2016, Rs. 21,119 crore is under Tarun Category. This constitutes 21.23% of the total portfolio. (Source : PIB)


My Opinion

It is estimated that there are around 5.77 crore Small Business units (mostly under individual proprietorship) which run small manufacturing, trading or service businesses in India. These sole-proprietors or entrepreneurs of Small & Medium Enterprises, find it difficult to get credit / finance from the financial institutions and end up acquiring loans at very high interest rates from financiers or money-lenders.

If Pradhan Mantri MUDRA Yojana is implemented well, it surely can be a boon to many of these small business owners. I believe these types of schemes are better than providing unnecessary subsidies.

Give a man a fish you feed him for a day, teach him how to fish and he will never go hungry

Kindly share your views and comments on Pradhan Mantri MUDRA Yojana 🙂

  • Mytechnicalhindi says:

    Very good information shared. Awesome and nice information. Thanks for sharing such a informative blog.

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  • Udayababu.K,N says:

    I am a unemployment person &family 2childrens,and wife so I interesting in my own business starting and I wanted money so I requesting you 20 lacks amount loan and staying in rent house I have a reunion card, health card, and one more news telling my 4/year’s daughter sugar paishent my wife is working in vessels cling some more houses my name is udayababu K?N, my phone number is 7892112469 my income is yearly 45000/ my caste is Vokkaliga of Category111 (A) my house address is#210, 8thcross, 1st N block,Rajajinagar, Bangalore -560010 please I requesting honable to yours loan amount only 20laks requires thank yours

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  • Yatin kumar says:

    LOan registration

  • Prakash sharma says:

    Loan

  • Ashwani kumar says:

    I need 5,00000Rs loan for mobile shop. How I get it.i have full document ready for mudra yojna.but no bank give me loan.how I get the mudra loan.banks are not ready for give me loan.how to I complaint against bank

  • bhawani says:

    i m managing a school at pakyong in east sikkim. due to the airport construction school collepsed.shifted to new location. the damage compensation is not sufficient to purchase of land and construction. school is affiliated to cbse in 2007. we need loan of at-least 1 cr. pl advice.

  • NARAYANAN says:

    The most black list bank is icici bank Why can’ arrest these bank criminals who are available in our country.BECAUSE OF THIS BANK I WENT TO COURT FOR GETTING JUSTICE

  • mohammad aijaz says:

    sir i want to purchase a laptop so that i could work as a freelancer, approximately rs.45000, how could i do?

  • Megha says:

    I want to invest in e commerce business. I need 5 lakh rupees and I’m 18 year old girl. How can I get money?

  • Rekha says:

    I want loan for start my shop of garment of 20000 dis is my start up business n m not working can I get loan reply me wid this

  • Pramod Kumar says:

    hello sir
    I’m interior design plz help need lond

  • Aji Sabu says:

    Dear Sir,

    Is there is deduction available for repay the loan.Means do we have to pay the whole principle or not?

  • farah ahmed says:

    dear sir
    i want to start my small mustard oil business
    in what ways i can avail financial help from diffrent yojnas by the govt,

  • venugopal nn says:

    how to get the lone

  • Noor Hossain says:

    Tomorrow I shall go to bank then I will apply for a loan. I am starting a Very sofisticated farm. If within 20 days I got the loan amount. Then I shall. be grateful of mudra yojana.

  • rajeshwari says:

    namaste i would like to start namkeen and snack manufacturing unit. kindly guide me in getting financial support from mudra scheme

  • Ramesh chandra parida says:

    Dear,
    I want 5lakhs loan from mudra bank yajona to start Electronics business. I have an account of PNB Pank in Odish .so help me plz. plz answer.

  • k.hariharasudhan says:

    Dear Sir,
    I am well experience transport line want to open new transport office , what kind of approch to get pmmy loan from bank ? how?

  • Yuvraj Pawar says:

    hi sir me mudra loan aply karna chahta hu but muze koi suport nahi mil rahai so please muze help ki jiye mera no 7387795237

  • rajesh says:

    Dear sir
    I’m one of the operator of self loading concrete mixer
    Sir give me loan for self loading concrete mixer please
    I want loan rs. 300000

  • prakash sing dewari says:

    Hello My name is Prakash singh dewari i want to start a PLywood Business But because lack of Capital My Business is not getting overcome So I wanted to know whether will I be able to get Pradhan Mantri Mudra yojana of 400000

    Thanking You
    Waiting for Response

  • Syed Hassan says:

    Hello My name is Syed Hassan i want to start a Garments Business But because lack of Capital My Business is not getting overcome So I wanted to know whether will I be able to get Pradhan Mantri Mudra yojana of 10,00,000

    Thanking You
    Waiting for Response

  • RAMAKRISHNAN M says:

    Sir,
    I have a small business implement of new machines my audio system and lighting systems .so loan approved bank and apply for mudra loan.

  • amit kumar says:

    Sir mujhe poultry farm khelne ke liye 500000 repay ki jarurat pad Rahi h to mujhe loan ke liye apply kese karna padega or kiss bank mn karna padega

    • Jagannath. bera says:

      Sir mujhe ek chasme ka dukan karna hai iske liye kuch instruments kharidna hai. Is liye 450000.00Rupiya ke jarurat hai. Pls sir hume kayse ye loan milega kaya karna parega agar jankari denge to mai aapki avari rahunga. Mera phone no hai -9002705371 Name Jagannath bera.

  • Chaitanya varma says:

    Hello Dear,

    I have plan to start new textile shop, can i apply MUDRA LOAN this FY 2017-2018.

  • Luxmi says:

    Hello sir
    I want to open a book shop. I need loan up to 500000. Pls help

  • Bhopal singh mewada says:

    Name bhopal singh Mewada

    sar me businiss karna cahta hu jiske leye mujhe lon ke jarurat he me apna sapns pura karna cahta hu so pls sar mere madad kejye pls sar mene pm ji k bhi chethe lekhe he pls sar

  • SURENDRA UPADHYAY says:

    Dear Sir/madam,

    My Wife want to Start a Shop for ladies Purpose She is good doing tailoring But not able to Expand his business,

    I need to Help but some i am unable to help so my wife need some amount of loan to Expand her Shop Earn some Money ,
    to fulfill his ambitious & help other to grow with her…………….,

    Please help my Contact nos 9821193931

  • sandeep pathak says:

    sir my name sandeep pathak sir mera plot hain lucknow main sarojani nagar main aur main us main dairy plant lagana chahata hun kya mujhey mudra loan mil sakta hain

  • K.Akalya says:

    Hi Madam / Sir,

    I am Akalya K, i am apply this loan my father, because my father working very hard in cooli, so now not available money,
    could you please provide this loan means my father purchase auto.

    Any i am surity for this loan, because correctly pay on time of every month.

    Thank You & Pls Help my father.
    Akalya Kumar

  • Shivani Singh says:

    MY NAME -SHIVANI SINGH
    CITY – VARANASI (UP)
    SIR MERE PAPA AUTO CHALATE HAI JISME BAHOT MUSHKIL SE HMARI FAMILY CHALTI HAI MERI MUMMY KA SAPNA THA KI HAMARA VARANASI ME GHAR HO PAR UNKI 2 SAL PAHLE DEATH HO GAI MAI UNKA YE SAPNA PURA KARNA CHAHTI HU JISKE LIYE MUJHE LOAN KI NEED HAI. SO AAPSE REQUEST KARUGI KI AAP MERI PLEASE HELP KARE

  • G S GOPI NATH says:

    Hi Mr. Sreekanth Reddy,

    I really appreciate your intention & afford to wards assisting many guys about financial & investment planning…
    I just wanna know how to get successful approval to receive loan around Rs. 1000000/- (Monthly i can bare 10000 to 12000 for payment) through Mudra (pradhan manthri plan) , Mainly i am looking for my personal commitments, so will u able to guide me the best way to survive my commitments by getting appropriate amount which i quoted?

    Right now i do not have any assets with me except debts so i have to clear all those & only asset i have with me is my Educational certificates till B.COM (correspondence).. any bank or financial institution will be giving best way to come out from my critical situation?

    At present i m working in OMAN which means like NRI.. so assist me the procedure to meet my commitments dude…

    Hope i can get best solution soon from you…

    I am waiting for your valuable advice..

    Thank you.

  • Madhu punjabi says:

    hello sir,

    I want do business i dont have enough money to run them.am i eligible for mudra loan.and how i can i contact the person for this help me sir Please urgent

  • Girish S Ingale says:

    I am unemployed please sir i need to do business in my life & i am having family,
    I WOULD LIKE TI APPLY FOR MUDRA LOAN TO START UP A NEW BUSINESS .
    CAN YOU GUIDE ME
    PH NO 9167472758

  • rathod asfak H. says:

    hello pm sir..
    respected sir me ek chemical engineer hu. or gujrat ka rehne wala hu. sir me plastic manufacture ka chhota sa project start karna chahta hu. sir gujrat me itne sare project har sal aate he but sb ka mu bada he kisi ko 8 sal ka experience chahie to kisi ko phd mere jese 2 sal vale aaj bhi apna kharcha bhi nahi utha pate kuchh naya nahi karpate to sir engineer banneka kya fayda hu knowledge bdha wo me manta hu but sir khali jab ke knowledge kisi kam ka nahi. khudki ek chhoti si factory karna chahta hu to 15 laks ki loan chahiye. to meri badi hap ho jaegi.sir hu gujrati to khwaishe umra se bdi hi rahegi.kuchh na kuchh karuga. sir apka support mila to meri apne goal tk pahochneki rfttar badh jayegi or nahi bhi mila to der lagegi but pahuchuga zarur. sir meri bat is platform se aptk pahhuchaneka mauka mila is ke lye thank u sir JAY HIND

  • SUMAN DAS says:

    Dear sir,

    I am from a very poor rural area at cooch behar district in west Bengal. I want to start a Small scale handmade soap manufacturing business at home. I have no documents about this.I am very enthusiastic about this.
    May i get a loan from PMMLY to start my business.please help me about this matter. I am so serious about this matter.
    I am a student of BA part I…
    It is a main Aim of my life now.
    it is not funny I am serious.
    I want to do something with myself and others…..Help me as soon as possible. Please……….

  • Thakor Bharatkumar says:

    I have a Porsonal Loan Recured

  • vinod sonkar & mansi sonkar says:

    To,
    Respected pm sir

    Mera naam mansi Sonkar hai main or mere husband ek kiraye k ghar me rh kar garment job karte hai. Main or mere husband khud ka garment business karna chahte hai. Plz aap 1 lakh ka loan dene ki kripa kre him aapke aabhari rhege

  • Navnath narsinge says:

    Hellow sir
    Maze rubber molding cha ek choyasa shop aahe aato devlop karnyasathi 250000 chi garaj aahe jar lon jar lon milu shakat aasel tar baga Sir

  • 7698974305 says:

    Loan lens k li a kiya karnapadega?
    Busses Ka pruf nahihe?
    To mere ko loan milegi k Nani?

  • VELLINGIRI R says:

    Dear Sir,
    I am well experience transport line want to open new transport office , what kind of approch to get pmmy loan from bank ? how?

  • sanjay kumar bansal says:

    muje 1000000rupeki pmmudaraloan kijarurat muje koi rasta batai

  • Mahendra says:

    sir
    i wants to take a dairy loan in mudra yoyana .say how we take loan from bank.

    • Basanta kumarDas says:

      Pm Sir me private sector me job kartahun me ghar bananeke lia 3 lakh homeloan chahatahun respected Sir

  • nathi ram says:

    Hello sir,

    Sir i am nathiram sr me apna ek general stor kholna cahta hu jisme mujhe 300000 rupe ki jrurt he kya mujhe ye kam krne ke liye mudra yojna se loan mil skta hen please guide me.

  • bhagwandassharma says:

    I want to start small iron door and cot industry in arban area.so I say near bank of broda that have my account . ineed only two lac rupees. but bank not gave proper loan. I went disst DM but did not success me please guide me.

  • Geeta Sharma says:

    Dear Sir/Mam i want requirement of
    5,Lac to start my own Business so sir can we explain me i am eligible for this loan. But sir i have no property to morgage in this requirement give me a great suggestion i like to start my own garments fashion business only i have experience in retaile knowlgede

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