Mudra Loan 2025 Updates
Pradhan Mantri Mudra Yojana (PMMY) – Latest Overview
The Pradhan Mantri Mudra Yojana (PMMY) is a flagship government scheme designed to provide affordable credit to micro and small enterprises. It aims to bring informal businesses into the formal financial system and empower entrepreneurs by offering collateral-free business loans.
Types of Mudra Loans
- Shishu – Up to ₹50,000 (Ideal for startups)
- Kishore – ₹50,001 to ₹5,00,000 (For growing businesses)
- Tarun – ₹5,00,001 to ₹10,00,000 (For expanding enterprises)
- Tarun Plus – ₹10,00,001 to ₹20,00,000 (For borrowers with good repayment history under Tarun category)
Maximum Loan Limit: ₹20 lakh
Processing Charges: Nil
Collateral: Not required
ROI: As applicable to MSME sector
Eligibility Criteria
- Micro and small non-farm enterprises
- Businesses engaged in manufacturing, trading, or services
- Enterprises with credit needs up to ₹20 lakh
- Allied agricultural activities such as horticulture, fisheries are also eligible (since 01/04/2016)
Documentation Required
- Duly filled Mudra loan application form
- Identity Proof: Aadhaar, PAN, Passport, Voter ID, etc.
- Address Proof: Utility bills, Aadhaar, Passport, Bank Statement
- Business Proof: Udyog Aadhaar, Licenses, Deed copy, etc.
- Photographs of the applicant(s)
- Category proof (if SC/ST/OBC/Minority)
- Loan purpose proof: Equipment quotation, vendor bills, etc.
Important Terms & Conditions
| Parameter | Details |
|---|---|
| Loan Amount | Up to ₹20 lakh |
| Repayment Period | Up to 84 months with moratorium |
| Margin | As per bank's guidelines |
| Credit Score | Minimum as per bank policy |
| Processing Fee | Nil |
| Collateral | Not required (hypothecation of assets only) |
| Guarantee | Covered under CGTMSE |
| Pre-closure Charges | Nil |
Useful Links
Frequently Asked Questions (FAQ)
1. Can I apply for a Mudra loan online?
Yes, many banks and lending institutions now provide online application facilities for Mudra loans.
2. Is collateral mandatory for a Mudra loan?
No, Mudra loans are collateral-free. However, banks may hypothecate the assets created from the loan amount.
3. What is the interest rate on a Mudra loan?
The interest rate is as per the MSME sector norms of individual banks.
4. Who is eligible for Tarun Plus?
Borrowers who have repaid their Tarun category loans successfully are eligible for the Tarun Plus category up to ₹20 lakh.
5. What sectors are covered under Mudra?
Manufacturing, trading, services, and allied agricultural sectors like fisheries, poultry, and horticulture.
