Pradhan Mantri MUDRA Yojana (PMMY)

Pradhan Mantri MUDRA Yojana (PMMY) provides collateral-free business loans to micro and small enterprises — covering artisans, street vendors, small shop owners, transport operators, food processors, and other self-employed individuals who cannot access formal bank credit. Under PMMY, loans are categorised into three tiers: Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), and Tarun (₹5,00,001 to ₹10 lakh).

The defining feature of MUDRA loans is that no collateral is required — the government guarantees the loan through MUDRA. Interest rates are set by individual lending institutions but are generally lower than open-market micro-finance rates. MUDRA loans are available through public sector banks, private banks, regional rural banks, microfinance institutions, and NBFCs.

As of FY 2025-26, over 50 crore MUDRA loans have been sanctioned since the scheme's launch in 2015, disbursing more than ₹30 lakh crore to small entrepreneurs. Women entrepreneurs account for about 68% of beneficiaries. Our editorial team has reviewed the current loan limits and application process against the official MUDRA portal at mudra.org.in, July 2026.