Launched by the Indian Government, the Pradhan Mantri Mudra Yojana (PMMY) is a flagship initiative designed to offer collateral-free loans up to ₹10 lakhs to non-corporate small businesses, MSMEs, and self-employed individuals.
If you’re wondering what is PM Mudra Yojana, it’s essentially a PM business loan scheme under which the government helps small entrepreneurs access credit easily.
Also known informally as the PM Modi loan yojana, this program was created to financially empower India’s grassroots businesses — from chaiwalas and tailors to startups and traders.
PM Mudra Yojana loan is classified into three types based on business needs:
| Loan Type | Amount Range | Interest Rate (avg) | Ideal For |
|---|---|---|---|
| Shishu | Up to ₹50,000 | 8% – 12% | Early-stage/startup businesses |
| Kishore | ₹50,001 – ₹5 Lakhs | 8% – 11.5% | Growing MSMEs needing working capital |
| Tarun | ₹5 Lakhs – ₹10 Lakhs | 7.30% – 10% | Expansion, machinery, hiring |
Wondering about the PM Mudra Yojana interest rate? It’s kept low to support small entrepreneurs — especially in rural and semi-urban India.
🔍 If you’re searching for a prime minister interest free loan scheme in India, note: PMMY doesn’t offer 0% loans, but provides low-interest loans without collateral.
This scheme is designed for:
You can apply if:
If you’re wondering how to apply for PM Mudra Yojana or how to get loan from PM Mudra Yojana, here’s the easy process:
✍️ Search queries like pm mudra yojana online apply and how to apply pm mudra yojana are trending in 2025 — and this process answers them directly.
Apart from online application, you can also apply through:
💼 Affiliate CTA:
👉 Apply for PM Mudra Yojana Loan – Check Eligibility
If you’re looking for a Modi loan for self-employment, this is your best bet in 2025.
If you’re preparing for UPSC, note: PM Mudra Yojana UPSC relevance includes topics like:
Include this under Government Schemes in your preparation.
Rekha, a tailor from Udaipur, took a ₹1 lakh Kishore loan in 2021 under Pradhan Mantri Mudra Yojana. Today, she owns 4 sewing machines and employs two other women. She’s now eligible for a Tarun loan to expand her shop.
Answer:
PM Mudra Yojana is a government-backed scheme launched by PM Narendra Modi to provide collateral-free business loans to micro and small businesses in India. Benefits include:
Know More about Other Govt. Schemes
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The maximum loan offered under the PM Mudra Yojana is ₹10 Lakhs, available under the Tarun category. Borrowers can choose from three tiers:
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The Mudra loan scheme (Micro Units Development and Refinance Agency) is a flagship initiative under the PMMY program aimed at providing business loans without collateral to small entrepreneurs, traders, artisans, and MSMEs. It helps promote financial inclusion and employment at the grassroots level.
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There is no official maximum age limit for applying under PM Mudra Yojana, but most banks typically require applicants to be between 18 and 65 years at the time of loan maturity.
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If you default on a Mudra loan:
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Interest rates vary by lender. On average:
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The Mudra Yojana was initiated to:
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If your bank rejects your application:
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Mudra Shishu loan is the entry-level category under PMMY, offering loans up to ₹50,000. It’s best suited for:
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SBI Mudra loan is offered by the State Bank of India under the PM Mudra Yojana. It follows the same three-tier format (Shishu, Kishore, Tarun) but is known for:
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