The Pradhan Mantri Mudra Yojana (PMMY) is one of the most ambitious schemes launched by the Government of India, aimed at supporting small businesses, self-employed individuals, and new entrepreneurs in India. Pradhan Mantri Mudra Yojana 2025 is Launched first in 2015, the scheme intended to provide easy access to collateral-free credit to micro and small enterprises that commercial banks often overlook.
As of 2025, the scheme has come a long way in both access and realised potential in creating jobs and local economic development. PMMY remains one of the most available financial schemes for small entrepreneurs due to low PM Mudra Yojana Interest Rates 2025. It’s not just about money – it’s about enabling dreams and allowing millions to convert their ideas to self-sustained businesses.
Pradhan Mantri Mudra Yojana 2025
India is a country of micro and small enterprises for which Pradhan Mantri Mudra Yojana 2025 is very helpful so that they can scale their business.. From street vendors and shop owners to small manufacturers and service providers, thousands and thousands of entrepreneurs are contributing to India’s GDP every day. However, every entrepreneur understands that getting timely financial support can be a challenge (a universal truth).
That is where Mudra Yojana comes in – up to ₹10 lakh without documentation or collateral! 2025 is a decade since it started, and the results say it all! With a basic aim to stimulate entrepreneurship in the country by offering small businesses affordable credit facilities, the Mudra Yojana 2025 has more than just this elementary aim behind it; it has serious implications.
PM Mudra Yojana 2025
| Name of Yojana | PM Mudra Yojana 2025 |
| Eligibility Criteria for Pradhan Mantri Mudra Yojana 2025 | The applicant must be at least 18 years old at the time of application.The maximum permissible age is 65 years at the point of loan maturity. |
| Who launched this program? | Government of India |
| What is the main objective of this program? | To promote entrepreneurship across India by providing affordable credit facilities to small businesses. |
| Year | 2025 |
| Mode of Application | Online, Offline |
| Category | Yojana |
| Country | India |
| Resources | mudra.org.in |
Types of Mudra Loans Offered in 2025
The Mudra Yojana has three categories of loans to accommodate various types of entrepreneurs. By offering three distinct categories, the Mudra Yojana is designed to address the needs of each type of borrower, from first-time entrepreneurs to existing businesses that need funding.
Shishu Loan Scheme
- Loan Amount: Up to ₹50,000
- Ideal For: Start-ups, small traders, street vendors, or para traders who would like to set up a business for themselves.
- Features: Minimal documentation, straightforward approval and disbursement.
The Shishu loan scheme offers people with relatively small amounts of capital required to start up, such as shopkeepers, small providers of services or those who would like to purchase raw materials to begin operations. Invest their small amount of capital in whatever amount of business they plan on.
Kishor Loan Scheme
- Loan Amount: ₹50,001- ₹5,00,000
- Ideal For: Entrepreneurs who have started their business but require further funds to sustain or grow their business.
- Features: A need for aspects of business-related documentation (i.e. Financial statements, and other financial documents and measures of related aspects of the business).
The Kishor loan focuses on operational funding and small-level use of the loans for inventory or operational working capital.
Tarun Loan Scheme
- Loan Amount: ₹5,00,001 – ₹10,00,000
- Ideal For: Established businesses looking to grow/develop significantly.
- Features: More documentation than Shishu and Kishor loans; still does not require collateral.
Eligibility Conditions for Pradhan Mantri Mudra Yojana 2025
Read below to learn more about the Pradhan Mantri Mudra Yojana 2025:
Eligible Applicants:
- Individual entrepreneurs,
- Proprietorship firms,
- Partnership firms,
- Small manufacturing units,
- Retail traders and service providers.
Age Requirements:
- The applicant must be at least 18 years of age at the time of application.
- The maximum age limit is established at 65 years at the time the loan matures.
Business Type Restrictions:
- The program is designed for small business initiatives that are neither corporate nor agricultural.
PM Mudra Yojana Interest Rates 2025
Interest rate is a nice aspect of Pradhan Mantri Mudra Yojana. Unlike informal lenders who impose exorbitantly high interest rates on small loans, Mudra loans have reasonable and affordable interest rates.
Current Interest Rates in 2025:
- Generally, 8% to 12% per annum, depending on the lending institutions.
- There may be slight differences between public sector banks, private banks and micro finance institutions.
Contrasted with ordinary loans:
- Most conventional small business loans may charge an interest of 15-20%.
- Mudra loans are more affordable than numerous conventional loans, making them a better choice for small business owners.
Benefits of the Pradhan Mantri Mudra Yojana 2025
- Mudra Yojana’s greatest benefit is that it provides loans without collateral, making it easier for borrowers to secure funds.
- Mudra loans come with interest rates between 8% and 12%, cheaper than most conventional loans, which saves entrepreneurs significant interest payments with TTS.
- With repayment periods of three or five years, borrowers make EMIs more manageable and have less financial burden.
- A huge number of Mudra loan recipients are women, which provides a double benefit of gender equality, increasing family incomes, and improving living conditions.
- PMMY has aided rural entrepreneurs, farmers in agribusiness, and small shop owners in improving their businesses, reflecting their rural economies.
- Many recipients of Mudra loans grow and expand their businesses and employ people, resulting in real job creation.
Frequently Asked Questions On Pradhan Mantri Mudra Yojana 2025
The maximum loan limit is ₹10 lakh under the Tarun category of Mudra loans.
No, Mudra loans do not require collateral, and applicants are not obligated to pledge any property or assets in order to secure the loan.
Farmers engaged in allied activities like poultry, dairy, and fisheries can apply for a loan. However, Mudra loans are not available for core farming activities.
Bank portals and /or banks/NBFCs offer both online and offline processes for applications. Both processes are quick and easy.
