Pradhan Mantri Mudra Yojana, Objectives, Mudra Card, Apply Online

Pradhan Mantri Mudra Yojana is a significant initiative from the 2016 financial year budget. This scheme allows companies needing funding of less than Rs. 10 lakhs to easily obtain loans. MUDRA stands for Micro Units Development and Refinance Agency. The government has collaborated with MUDRA to launch this scheme, hence it is known as Pradhan Mantri Mudra Yojana.

Small businesses often find it difficult to secure initial funds. The Pradhan Mantri Mudra Yojana is designed to benefit non-corporate and non-farm sector businesses. Here’s everything you need to know about this Yojana.

Pradhan Mantri Mudra Yojana

Who Can Apply for the Pradhan Mantri Mudra Yojana?

  • Only Indian citizens can apply for the scheme.
  • Under the MUDRA scheme, only non-farm activities are eligible for loans. Farmers can choose from schemes specifically designed for them.
  • Only non-corporate activities can apply for loans under this scheme.
  • The minimum age to apply is 23 years, and the maximum age is 28 years. Additionally, the applicant must repay the loan before reaching the age of 65.
  • The funds must be used for business activities only.
  • Eligible businesses include small enterprises such as vegetable shops, repair shops, or truck operations.
  • The business must return a profit. The government requires the business to have an annual turnover of Rs. 15 lakhs, with non-individuals showing a profit of Rs. 1 lakh and self-employed individuals a profit of Rs. 2 lakhs.
  • Applicants can apply for a loan from the bank where they have maintained good service relations for over a year. If they do not have a bank account, they must reside at their current address for a year.

Key Features of the Pradhan Mantri Mudra Yojana

  • The scheme is not assigned to a particular lender, allowing various lenders to participate.
  • Applicants should carefully read the terms and conditions of their chosen lender.
  • The government plans to give preference to backward classes under the scheme.
  • The scheme is active nationwide and is performing well.
  • Almost all banks provide this scheme, so applicants can approach any bank of their choice.

Various Interest Rates Under the Pradhan Mantri Mudra Yojana

The scheme is divided into categories based on interest rates to cater to different business needs:


  • For small businesses, with loans up to Rs. 50,000.
  • Interest rate: 12% per annum.
  • Repayment period: Up to 5 years.


  • For middle-sized businesses, with loans between Rs. 50,000 and Rs. 5 lakhs.
  • Interest rate and repayment period depend on the applicant’s credit history and the bank’s terms.


  • For larger businesses, with loans between Rs. 5 lakhs and Rs. 10 lakhs.
  • Rules are the same as for Kishore but with a higher loan amount.

Also Read: Pradhan Mantri Ujjwala Yojana Objectives, Eligibility, Apply Online

How to Apply for the Pradhan Mantri Mudra Yojana

As there is no specific government body assigned as a lender, there is no fixed procedure to apply. However, the general steps are as follows:

  1. Visit the nearest bank branch and discuss your business plans.
  2. If convinced, the bank will provide the Pradhan Mantri Mudra Yojana form, also available on the MUDRA website.
  3. Open a current bank account if you don’t have one.
  4. Fill out the form and attach the necessary documents as required by the bank.
  5. Submit the form and receive an acknowledgment slip.
  6. Upon approval, the loan amount will be credited to your account.
  7. Maintaining a good credit history will facilitate easier loan acceptance.

What is the Mudra Loan Card?

Mudra Loan Card
Mudra Loan Card

The Mudra Loan Card is issued upon loan approval. It is a RuPay debit card that allows you to:

  • Withdraw money from ATMs.
  • Use the loan amount loaded on the card.
  • Swipe the card at various PoS terminals for payments.

Let us know if you want to know anything else about the scheme. We would be happy to help you.

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