Pradhan Mantri MUDRA Yojana (PMMY): Mudra Loan Interest Rate, Mudra Loan Online apply

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Pradhan Mantri MUDRA Yojana (PMMY): Empowering Microenterprises in India

In an effort to promote entrepreneurship and financial inclusion, the Government of India launched the Pradhan Mantri MUDRA Yojana (PMMY).

This flagship scheme aims to provide financial support to micro and small enterprises by offering affordable loans through various financial institutions.

This article provides an overview of the PMMY, including details about the MUDRA loan interest rates and the process of applying for a MUDRA loan online.

Understanding Pradhan Mantri MUDRA Yojana (PMMY)

Pradhan Mantri MUDRA Yojana (PMMY) was introduced in April 2015 to address the financing needs of the micro and small enterprise sector in India.

“MUDRA” stands for Micro Units Development and Refinance Agency. The primary objective of PMMY is to encourage entrepreneurship, generate employment opportunities, and enhance the socio-economic status of the country’s micro-businesses.

The scheme operates through three different loan categories:

  1. Shishu: Loans up to Rs. 50,000 are provided to startups or small businesses in their early stages. These loans require minimal documentation and are often collateral-free.
  2. Kishore: Loans ranging from Rs. 50,001 to Rs. 5,00,000 cater to businesses that have already established themselves and need additional funds for expansion or diversification.
  3. Tarun: Loans ranging from Rs. 5,00,001 to Rs. 10,00,000 support established businesses looking for higher loan amounts to scale up their operations.

MUDRA Loan Interest Rates

The interest rates for MUDRA loans are determined by the financial institutions participating in the PMMY.

These rates may vary based on the borrower’s credit profile, the loan category, and the prevailing market conditions.

However, MUDRA loans are generally offered at competitive interest rates, making them affordable and accessible for micro and small businesses.

Applying for a MUDRA Loan Online

To facilitate a seamless loan application process, MUDRA loans can be applied for online through the official MUDRA portal ( Here are the steps to apply for a MUDRA loan online:

  1. Visit the MUDRA website: Go to the official MUDRA portal using a web browser.
  2. Select the loan category: Choose the loan category that aligns with your business needs—Shishu, Kishore, or Tarun.
  3. Download the application form: Download the loan application form available on the website. Fill in the required details accurately.
  4. Gather necessary documents: Gather all the necessary documents, such as identity proof, address proof, business registration certificates, financial statements, and any other supporting documents specified by the financial institution.
  5. Approach a financial institution: Based on your preference, approach a bank or financial institution that is a part of the MUDRA network. Submit the loan application form along with the required documents.
  6. Loan processing and approval: The bank or financial institution will review your application and documentation. If all requirements are met, the loan will be processed, and the decision will be communicated to you.
  7. Loan disbursement: Upon approval, the loan amount will be disbursed directly to your bank account. Make sure to provide accurate banking details during the application process.


The Pradhan Mantri MUDRA Yojana (PMMY) has emerged as a crucial initiative to empower micro and small enterprises in India.

By offering affordable loans through various financial institutions, the scheme supports entrepreneurship and creates opportunities for economic growth and job creation.

With competitive MUDRA loan interest rates and the convenience of online application, the PMMY aims to foster an environment conducive to the development of micro and small businesses across the country.

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