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Mudra Yojana

Mudra Yojana

The Indian government set up the Pradhan Mantri Mudra Yojana (PMMY) via MUDRA, a subsidiary of SIDBI, to aid small business owners by offering microcredit up to Rs.10 lakh. MUDRA supports financial intermediaries in providing loans to micro and small businesses involved in non-corporate, non-farm sector income-generating activities with credit requirements up to Rs. 10 lakhs.


  • Indicate where the microenterprise or entrepreneur currently stands in terms of growth and development, as well as their financial requirements.
  • Offer a benchmark for their progression to the next stage of expansion or development.

Benefits of Mudra Yojana

    Shishu Stage: This stage is tailored for entrepreneurs who are just starting out or need a smaller amount of funds to kickstart their businesses, with loans covering amounts up to Rs. 50,000.

    Kishor Stage: Entrepreneurs at this stage have already initiated their businesses and seek additional funds to expand their operations, with loans covering amounts up to Rs. 5,00,000.

    Tarun Stage: Eligible entrepreneurs can apply for loans up to Rs. 10,00,000 at this stage, which represents the highest tier of funding available for startup ventures.

    Lending Rates: The lending rates are set in accordance with guidelines established by the Reserve Bank of India (RBI) as issued periodically.


    • If you’re an Indian citizen with a business idea in manufacturing, processing, trading, or services, you qualify.
    • Your plan should aim to generate non-farm income.
    • You can seek a loan of up to Rs 10 lakh for your venture.
    • To access loans under the PMMY scheme, you must follow the lending agency’s standard terms and conditions.

    The business should be either one of the follow:

    • Small manufacturing enterprise
    • Shopkeepers
    • Fruit and Vegetable vendors
    • Artisans
    • Other farming-related activities like raising fish, bees, chickens, and livestock, as well as sorting, grading, and aggregating produce, setting up agricultural businesses, processing food, and running agriclinics.

    Read Also: Pradhan Mantri Mudra Yojana : Credit saturation for livelihoods

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