Pradhan Mantri MUDRA Yojana (PMMY)

What is Pradhan Mantri MUDRA Yojana?

Pradhan Mantri MUDRA Yojana (PMMY) is a Government of India scheme launched on 8 April 2015 to provide institutional, collateral-free credit to micro enterprises that were previously dependent on moneylenders. MUDRA stands for Micro Units Development and Refinance Agency, the institution set up to refinance lenders under the scheme.

According to the Department of Financial Services, PMMY loans are extended by Member Lending Institutions (MLIs) - public and private sector banks, foreign banks, regional rural banks, small finance banks, NBFCs, microfinance institutions and NBFC-MFIs - to non-corporate, non-farm enterprises with a credit requirement of up to Rs 20 lakh.

Key objectives

• Bring the country's smallest businesses - roughly six crore of them - inside the formal banking system.
• Remove collateral as a barrier so that first-generation entrepreneurs without property can borrow.
• Fund working capital and equipment for manufacturing, trading, services and activities allied to agriculture.

Main features

• Four loan categories, matched to the stage of business growth.
• No collateral and no processing fee for the smallest loans at most public sector banks.
• Loans are covered by a guarantee, so the lender's risk on an unsecured advance is shared.
• As of the scheme's 11th anniversary in April 2026, over Rs 40.07 lakh crore had been sanctioned across more than 57.79 crore loan accounts.
• Women borrowers account for 59.81% of loan accounts and 37.45% of the disbursed amount; SC, ST and OBC borrowers together account for 45.52% of accounts.

What are the four MUDRA loan categories?

Tarun Plus was introduced with effect from 24 October 2024, doubling the PMMY ceiling from Rs 10 lakh to Rs 20 lakh. It is a repeat-borrower category - a first-time applicant cannot start at Tarun Plus. The track record of full repayment on the earlier Tarun loan is what unlocks it.

Who is eligible for a MUDRA loan?

You can apply if:

• You are an Indian citizen aged 18 years or above.
• You run or plan to start a non-corporate, non-farm micro enterprise - proprietorship, partnership, self-help group, or a small manufacturing, trading or service unit.
• Your credit requirement is up to Rs 20 lakh.
• Your business is in manufacturing, trading, services, or an activity allied to agriculture such as dairy, poultry, beekeeping, fisheries, agri-clinics or food processing.
• Your repayment record with existing lenders is clean.

You cannot apply if:

• You need a crop loan or funds to buy agricultural land - crop finance is not eligible under PMMY and is served by the Kisan Credit Card.
• You need more than Rs 20 lakh, which is above the PMMY ceiling.
• The borrowing entity is a large corporate rather than a micro enterprise.
• You are a defaulter on an existing loan or your account is classified as a non-performing asset - lenders will not sanction a fresh MUDRA loan.
• You are applying for Tarun Plus without having repaid a Tarun loan - that category is not eligible to first-time or partly-repaid borrowers.
• The loan is for personal consumption rather than an income-generating activity.

What documents are required for a MUDRA loan?

Larger Tarun and Tarun Plus proposals normally also need a project report or business plan and, where the unit is already running, income tax returns and audited accounts.

How to apply for a MUDRA loan online

1. Open udyamimitra.in or jansamarth.in, the two official online application routes for PMMY.
2. Register with your name, mobile number and email address, and verify the OTP sent to your phone.
3. Select the Pradhan Mantri MUDRA Yojana product and choose the category - Shishu, Kishore, Tarun or Tarun Plus - matching the amount you need.
4. Enter your personal, business and financial details, including the purpose of the loan, expected turnover and existing borrowings.
5. Upload the identity, address, business and bank statement documents in the formats specified.
6. Choose a lender from the list of member lending institutions shown for your district and submit the application.
7. Track the application on the portal. The lender will contact you for verification, and on sanction the funds are credited to your business account.

How to apply for a MUDRA loan offline

1. Visit the branch of any bank, small finance bank, RRB, NBFC or microfinance institution that participates in PMMY.
2. Ask for the PMMY loan application form for your category and fill it in.
3. Attach the identity, address, business and bank statement documents, plus a project report for Tarun and Tarun Plus proposals.
4. Submit the form and collect an acknowledgement. Follow up with the branch manager, who is the sanctioning authority for most MUDRA loans.

How much does a MUDRA loan cost?

PMMY does not fix a single interest rate. Each member lending institution sets the rate under RBI guidelines according to its own benchmark lending rate and the borrower's risk profile, so rates differ between a public sector bank, an NBFC and a microfinance institution. Ask each lender for the annualised rate, the processing fee and the total repayment schedule in writing before you sign.

The loan is collateral-free up to Rs 20 lakh. A lender that demands property security or a third-party guarantee for a MUDRA loan is acting outside the scheme's terms, and that can be escalated to the bank's grievance cell or to the RBI Ombudsman.

Working capital sanctioned under PMMY can be drawn through a MUDRA card, a RuPay debit card that lets a borrower withdraw and repay in instalments, with interest charged only on the amount actually used.

Help and grievance redressal

• PMMY national toll-free numbers: 1800-180-1111 and 1800-110-001
• Official portal: mudra.org.in, which lists state-wise helpline numbers and the full list of member lending institutions
• Online application portals: udyamimitra.in and jansamarth.in
• Escalation: the nodal officer of the lending bank, then the bank's grievance redressal cell

No agent can guarantee sanction of a MUDRA loan, and no fee should be paid to any intermediary. The sanction decision rests entirely with the lending institution's credit appraisal.

How to check your application status

Because a MUDRA application lives with a lending institution rather than with a government department, there is no single national status window that shows every application. Where you check depends on how you applied. Work through the routes below in order.

If you applied online, check on the portal you used

1. Log in to udyamimitra.in or jansamarth.in with the mobile number and password you registered with, verifying the one-time password if prompted.
2. Open your applications or dashboard section and find the application by the reference number generated at submission.
3. Read the stage the portal shows. In broad terms an application moves through submitted, accepted by a lender, under process or under appraisal, sanctioned, and disbursed. It can also show as returned for more information, or as closed or rejected.
4. If the portal shows a query or a request for additional documents, respond there first, and follow it up with a call to the branch handling the file. Portal queries left unanswered are the most common reason an otherwise healthy application stalls.

Keep in mind that a lender's internal system is the master record. The portal reflects what the lender updates into it, so a status that has not moved for a while does not always mean the file has not moved. That is why the branch check below matters.

If you applied at a branch, or the portal is not updating

The branch is the authoritative source in every case.

1. Go to or call the branch where you submitted the file, quoting the date of submission and the acknowledgement reference number.
2. Ask for the name of the official who is processing your proposal, and ask a specific question rather than a general one: has the file been appraised, is any document pending from you, has it been sent for sanction, and what is the expected date of a decision.
3. Ask them to record the query. A follow-up you can point to later is worth much more than an informal conversation.
4. If a field visit or verification has already happened, ask whether the report is in and what it said.

Visit outside the busiest hours, carry your originals and the acknowledgement, and take notes on the date, the name of the person you spoke to and what they told you. That log becomes your evidence if you need to escalate.

Check the SMS and email trail

Every meaningful step in a loan application generates a message to the mobile number and email you registered.

• An acknowledgement of submission with the reference number.
• Requests for additional documents or clarifications.
• The sanction message, followed by the disbursement credit alert.

Search your inbox and message history before assuming nothing has happened. Applicants regularly discover that a document request went out weeks earlier and was missed. If you have changed your mobile number since applying, inform the branch immediately and in writing, because a file where the lender cannot reach the applicant gets closed.

Use the helplines

• The PMMY national toll-free numbers are 1800-180-1111 and 1800-110-001. These are the right place for general questions about the scheme, for confusion about which lenders participate in your area, and for a complaint that a branch is refusing to accept an application or is demanding collateral.
• The official portal mudra.org.in lists state-wise helpline numbers along with the full list of member lending institutions, which is useful when you need a state-level contact rather than a national one.
• Keep in mind what a helpline can and cannot do. It cannot open your file and tell you the credit officer's view, because the file is not held centrally. It can tell you where to take an unanswered application and can record that a lender has behaved outside the scheme's terms.

How long to wait before escalating

There is no single statutory turnaround published for PMMY, and lenders differ. As a working rule, a small Shishu application should not be sitting untouched for weeks with no contact at all, while a Tarun or Tarun Plus proposal legitimately takes longer because of the project report, the unit visit and the higher sanctioning authority involved. The signal to act on is not elapsed time alone. It is silence: no acknowledgement, no verification visit, no document request and no named officer handling the file.

If your application is stuck or has been refused

Escalate in this order, and keep each step in writing.

1. The branch manager. Ask for the current status in writing and, if the application has been declined, ask for the reason to be recorded. A borrower is entitled to know why a proposal was not accepted.
2. The bank's nodal officer for PMMY. Every lending bank has one, and the branch is obliged to tell you who it is. A written representation to the nodal officer, attaching your acknowledgement and a short chronology, moves files that a branch has parked.
3. The bank's grievance redressal cell. Most banks provide an online complaint form and issue a complaint reference number. Preserve that number.
4. The RBI Ombudsman, which is the route where a lender has demanded collateral or a third-party guarantee on a collateral-free MUDRA loan, has refused to accept an application without reason, or has not responded to a grievance within a reasonable time.
5. The PMMY toll-free numbers, in parallel, to place the complaint on record at the scheme level.

At every stage, a dated acknowledgement, a written query and a complaint reference number are what make escalation work. An undocumented follow-up leaves you with nothing to escalate.

Checking status of a sanctioned loan after disbursement

Once the loan is running, status means something different, and you check it through the loan account rather than the application.

• Use your bank passbook, net banking or mobile banking to see the outstanding balance, the instalments paid and the next due date.
• Where a MUDRA card was issued, the card account shows the limit sanctioned, the amount drawn and the amount repaid, since interest applies only to the drawn portion.
• Ask the branch for a statement of account if any instalment appears not to have been credited. Do this immediately rather than at the end of the year, because a repayment record that looks broken will cost you the next, larger loan in the Shishu to Kishore to Tarun to Tarun Plus progression.