Banking & Insurance

What are the conditions for pradhan mantri mudra yojana?

pradhan mantri mudra yojana

India  is one of the largest growing economies in the world. Despite a strong reliance on primary sectors, India is making massive strides in the secondary and tertiary sectors as well, and its large conglomerates as formidable engines of growth. However, a lot of India’s economic prosperity actually comes from its  MSMEs or Micro, Small and Medium Enterprises. Unfortunately, this section of the economy has struggled to find funding and this is where the Pradhan mantri Mudra Yojana comes into play. 

The Pradhan mantri Mudra Yojana or PMMY

The Pradhanmantri Mudra Yojana, or PMMY is a scheme that aims to help these MSMEs secure funding to further their economic ambitions. In this article, we will break down what the Pradhan mantri Mudra Yojana is, and the Mudra loan eligibility rules. 

The PMMY is a scheme that allows MSMEs to borrow funds upto 10 lakhs to fund business ventures. But who can apply for this scheme? 

PMMY Eligibility

The following meet the Mudra loan eligibility:

  1. Fruit and Vegetable vendors. 
  2. Shop Keepers. 
  3. Individuals who are in the agricultural sector. 
  4. Small manufacturers. 
  5. Artisans. 

Here are some additional Mudra loan eligibility requirements:

  1. The applicant must be a minimum of 18 years old or above, and below 65. 
  2. This is not an unsecured loan, collateral required. 
  3. You need to provide residence proof, identity proof and passport photos with your applicant form for the Pradhanmantri Mudra Yojana. 
  4. New, as well as existing enterprises, are eligible to apply for the loan. 
  5. The repayment tenure for the Pradhan mantri Mudra Yojana ranges between three to five years. 
  6. You can use the loan amount to fund a slew of business operations, which include but are not limited to: A push to expand the business, to fund restructuring exercises, to meet any extended working capital requirements as well any purchases of manufacturing equipment and other machinery. 

Offerings Under PMMY

  1. The Shishu loan: This loan is targeted towards novice entrepreneurs that are just beginning their business. The loan amount can go up to Rs. 50,000 rupees. 
  2. The Kishore Loan: This loan is targeted at existing enterprises that are looking to expand. The loan amount ranges between Rs. 50,000 and Rs. 5 Lakhs. 
  3. The Tarun Loan: This loan is for companies that are established in the MSME sector, and allows them to avail of loan amounts ranging from Rs. 5 Lakhs to Rs. 10 Lakhs, the latter being the maximum amount offered under the Pradhanmantri Mudra Yojana. 

Read More: Top 10 best Instant Personal Loan Apps in India


The Pradhanmantri Mudra Yojana aims to provide the MSME sector with a much needed economic stimulus that is long overdue. If you meet mudra yojana loan eligibility criteria, you could apply for the Pradhan mantri Mudra Yojana to fund your business today. 

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I'm Ved Prakash, Founder & Editor @Newsblare Media, specialised in Business and Finance niches who writes content for reputed publication such as,, Motley Fool Singapore, etc. I'm the contributor of different... news sites that have widened my views on the current happenings in the world.

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