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Pradhan Mantri MUDRA Yojana (PMMY)
Central scheme
Three loan tiers: Shishu (up to ₹50,000), Kishore (₹50,001–₹5 lakh), Tarun (₹5–₹10 lakh). Loans are collateral-free and can be used for working capital, equipment purchase, or business expansion. Interest rates are typically 8.5%–12% p.a. A MUDRA Card (RuPay debit card) is issued for working capital loans. Under PMMY 2.0, a new category 'Tarun Plus' up to ₹20 lakh is available for successful Tarun loan repayers.
Eligibility Criteria
- Non-farm micro or small enterprises engaged in manufacturing, trading, or services
- Individuals, proprietorships, partnership firms, limited liability partnerships, and companies
- No minimum income requirement for Shishu and Kishore loans
- Business plan required for Tarun loans (₹5–10 lakh)
- Good credit history preferred; no collateral required
Required Documents
- Aadhaar Card and PAN Card
- Business address proof
- Business registration documents (if any)
- Bank account statements (last 6 months)
- Passport-size photographs
- Quotation for machinery/equipment (for equipment loans)