The Pradhan Mantri Mudra Yojana (PMMY), popularly known as PM Mudra Loan Yojana 2025, is one of the most impactful government initiatives aimed at empowering small and medium entrepreneurs, startups, and local businesses. This scheme provides collateral-free loans up to ₹10 lakh, enabling millions of individuals to establish or expand their businesses.
As of 2025, the scheme has been further strengthened with easier access, categorization of loans, and special focus on financial inclusion. This makes it a golden opportunity for young entrepreneurs, women, and micro-business owners to achieve their dreams of self-employment.
Objectives of PM Mudra Loan Yojana 2025
- Financial Inclusion – To bring unorganized and micro-businesses into the formal banking system.
- Collateral-Free Loans – Providing up to ₹10 lakh without asking for security or collateral.
- Promote Entrepreneurship – Supporting startups, small shopkeepers, manufacturers, service providers, and traders.
- Boost Employment – Encouraging job creation through business expansion and self-employment.
Loan Categories under Mudra Yojana
The scheme has been divided into three primary categories and one advanced stage to meet the needs of different business sizes:
| Category | Loan Amount Range |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishor | ₹50,001 – ₹5 lakh |
| Tarun | ₹5 lakh – ₹10 lakh |
| Tarun Plus | ₹10 lakh – ₹20 lakh (for borrowers who repaid Tarun loans successfully) |
This categorization ensures that both beginners and experienced entrepreneurs can benefit from the scheme.
Eligibility Criteria
To apply for the PM Mudra Loan Yojana 2025, applicants must fulfill certain conditions:
- Must be an Indian citizen.
- Minimum age 18 years.
- Must have a positive credit history/CIBIL score.
- Should be running or planning a business activity – manufacturing, trading, or services.
- Can be an individual, sole proprietor, partnership, small company, or micro-enterprise.
Required Documents
The list of basic documents for Mudra Loan includes:
- Aadhaar Card (for ID proof)
- PAN Card (for taxation purposes)
- Mobile Number
- Residence Proof
- Caste Certificate (if applicable)
- Income Proof (such as ITR)
- Bank Passbook details
- Business Proof (licenses, registration, or shop details)
Loan Features: Interest, Tenure & Security
- Interest Rate – Varies as per the bank. For instance, SBI applies rates based on EBLR, around 12% onwards (as of Feb 2025).
- Collateral/Security – No collateral required up to ₹10 lakh.
- Processing Fee – Many banks, like Bank of Baroda, charge zero processing fees.
- Repayment Tenure:
- Loans up to ₹5 lakh → Repayment up to 5 years (with 6 months moratorium).
- Loans from ₹5–20 lakh → Repayment up to 7 years (with 12 months moratorium).
- Credit Guarantee – Loans are covered under CGFMU (Credit Guarantee Fund for Micro Units), reducing risk for banks.
List of Participating Banks
You can apply for Mudra Loan at almost all leading banks across India, such as:
- State Bank of India (SBI)
- Bank of Baroda (BOB)
- Punjab National Bank (PNB)
- Union Bank of India
- Canara Bank
- HDFC Bank
- ICICI Bank
- Kotak Mahindra Bank
Apart from these, Regional Rural Banks (RRBs), Co-operative Banks, NBFCs, and Micro Finance Institutions (MFIs) are also authorized to provide Mudra loans.
How to Apply for PM Mudra Loan 2025?
Applying for a Mudra Loan is simple and can be done in two ways:
Offline Process:
- Visit your nearest bank branch that offers Mudra Loans.
- Collect the Mudra Loan Application Form.
- Fill in personal, business, and financial details.
- Attach required documents.
- Bank will verify your application and approve the loan.
Online Process:
- Some banks provide online Mudra Loan application forms on their websites.
- Applicants can fill in details, upload documents, and track status digitally.
- However, physical document verification may still be required in some cases.
| official website | View |
The PM Mudra Loan Yojana 2025 stands as one of the most powerful financial schemes for India’s small entrepreneurs. By offering up to ₹10 lakh without collateral, with flexible repayment and minimal documentation, it opens doors for millions of people to achieve self-employment and business success.
If you are planning to start a new business, expand your shop, invest in equipment, or support your trade, this scheme is highly beneficial.
To apply, visit your nearest bank branch or check the official bank website for updated details before proceeding.