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Pradhan Mantri Mudra Yojana- All You need to know:

Pradhan Mantri Mudra Yojana is a financial initiative for facilitating and motivating micro-units and providing them with sufficient funds to help them and to develop their business. It becomes difficult for the small and medium businesses which are incapable of availing loans from the banking institutes due to lack of security and lack of funds. There are more than 577 crore small businesses at present functioning in the country. Helping these businesses grow would ultimately lead to the advancement of the economy. 


Under the Jan Dhan Yojana, the government launched its MUDRA Bank (Micro Units Development and Refinery Agency) initiative on 8th April 2015.

What are the Key Objectives for Pradhan Mantri Mudra Yojana :

The inception of MUDRA yojana was done keeping in mind several objectives to be fulfilled during the implementation of this Yojana. The most prominent of these are:

  • Laying down policy guidelines for financing small/medium enterprises.
  • Getting all the microfinance institutions and related entities registered and then regulating the same.
  • For helping the small businesses develop and grow further.
  • Assisting lower-income groups in building and expanding their business.
  • To assist in creating easy access to finance for unbanked and help in lowering their cost of finance.
  • To provide SC/ST Lending preference.

What are the loan limits and interest rates under Pradhan Mantri Mudra Yojana ?

As per the choices for financing available under this scheme, the loan limits and interest rates vary for accommodating for the growth phase of the respective business availing such loan. The applicable limits and rates are as follows:

  • Shishu- Loans up to a limit of INR 50,000 with interest being 1 percent/ month or 12 percent/annum. The repayment period for such a loan is up to 5 years.
  • Kishor- Loans from INR 50,000 Up to 5,00,000. The interest rate would depend on the bank.
  • Tarun- Loans from INR 5,00,000 up to 10,00,000. The interest rate would depend on the bank, as per the guidelines of the schemes, and keeping in view the applicant’s credit history. 

 Overall, almost 27 public sector banks, 31 regional rural banks, 17 private sector banks, 36 microfinance institutions, 25 Non- Banking institutions, and 4 co-operative banks have been selected for disturbing this loan as of now.

What all are covered in Pradhan Mantri Mudra Yojana ?

The loans under this scheme could be availed for the purposes listed below:

  1. Car loan
  2. Commercial vehicle loan
  3. Two-wheeler loan
  4. Working capital loan
  5. Loan for plant and machinery
  6. Revamping the business space

 Emphasis on Specific Segments

The Finance Minister said that though the target for lending is scaled up, the key targets would be women, backward classes, minorities, Dalits and Tribals who have been usually not provided the adequate opportunity of getting finances for their businesses.

PM Kisan : Pradhan Mantri Kisan Samman Nidhi | Full Detail