PM Mudra Loan Yojana 2025: It is very beneficial for those citizens in India who want to start their small business. However, if you are already running your small business, then you can also apply for the PM Mudra Loan Yojana 2025 through online mode. You can get up to a 20 lakh rupee loan under their scheme. The loan will be provided by various central banks and regional banks.
So, if you need the money to start your business, then you can read our article where we are providing you complete details of the PM Mudra Loan Yojana 2025. Including the eligibility criteria and the application procedure to apply online with essential documents.
PM Mudra Loan Yojana 2025 Overview
| Name of Yojana | Pradhan Mantri Mudra Yojana (PMMY) |
| Benefits | Loans at low interest rates to MSMEs |
| Amount of Loan | Rs.50,000 to Rs.20 lakh |
| Fee | Shishu loan – NIL Kishore and Tarun—Depends on the lender |
| Repayment Period | Different between 1 and 7 years depending on the lender |
| Collateral | NIL |
| Official website | mudra.org.in |
What is PM Mudra Loan Yojana 2025?
The Pradhan Mantri Mudra Loan Yojana was first launched in April 2015 with a vision to provide collateral-free loans to small and micro enterprises that often struggle to obtain credit from formal financial institutions. The scheme operates under three categories, Shishu, Kishor, and Tarun, each designed to meet different stages of business development.
By October 2025, the program has already helped nearly 40 crore beneficiaries, including a large share of women entrepreneurs and small traders, strengthening India’s backbone of small and medium-sized enterprises (SMEs).
Eligibility Criteria for PM Mudra Loan Yojana 2025
- Small and micro-enterprises engaged in non-farm business activities.
- Shopkeepers, traders, artisans, service sector entrepreneurs, and self-employed individuals.
- Home-based businesses, startups, and farmers involved in allied agricultural activities like beekeeping, poultry, and agro-processing.
- Women entrepreneurs and socially backward groups are strongly encouraged.
- Applicants should be Indian residents with a viable business plan and no prior default history in credit.
Objectives of PM Mudra Loan Yojana 2025
- For laying down policy guidelines for financing small/micro enterprises.
- Getting all the microfinance institutions and the related entities registered and then regulating the same.
- For helping the small businesses develop and grow further.
- To assist in creating easy access to finance for the unbanked and help in lowering their cost of finance.
- For regulating all the microfinance institutions that are dealing with trading, manufacturing, and service.
Benefits of PM Mudra Loan Yojana 2025
There are three types of Mudra loans. They are as follows:
| Category | Loan Limit | Target Group |
| Shishu Loan | Up to ₹50,000 | Start-ups and new micro businesses |
| Kishore Loan | ₹50,001 to ₹500,000 | Growing small enterprises |
| Tarun Loan | ₹500,001 to ₹1,000,000 | Established microbusinesses |
| Tarun Plus Loan | ₹10,00,001 to ₹20,00,000 | Expanding enterprises needing higher capital |
Documents Needed to Apply for PM Mudra Loan Yojana 2025
You need to carry the following documents at the time of online application for PM Mura Loan Yojana 2025.
- Aadhar card of the applicant.
- PAN card of the applicant.
- GST number of the applicant.
- Business-related documents.
- Address proof.
- Bank passbook and bank statement for at least 6 months.
- Business plan to promote your business.
How to Apply for PM Mudra Loan Yojana 2025 Online?
There are many banks, including State Bank of India, Bank of Baroda, Punjab National Bank, Central Bank of India, etc., that are providing PM MUDRA loans through online mode. You can follow this procedure to apply online:
- Go to the UdyamiMitra portal or the Mudra loan official website.
- If you are a new user, register on the portal. If you are an existing user, log in to your account.
- Find and click on the “Mudra loan” or “Apply Now” option. You can choose to apply as a new or existing entrepreneur or as a self-employed professional.
- Fill in personal and professional details: mobile number. You will be asked to generate an OTP to verify your mobile number.
- Fill in all the required fields and upload scanned copies of the necessary documents. These may include proof of identity, address proof (for you and your business), photos, and bank statements.
- Review all the information and documents you have provided.
- Submit the application for processing. The loan will be processed by the bank or financial institution.
PM Mudra Loan Yojana 2025 Offline Process
- Visit any authorized bank branch or microfinance institution offering Mudra loans.
- Request the PM Mudra Loan Application Form.
- Fill in required details and attach documents.
- Submit to the loan officer for verification.
- Await approval and disbursement into your registered bank account.
PM Mudra Loan Yojana 2025 Interest Rate
Interest rates for PMMY loans vary by bank and applicant profile. They are as follows:
- Shishu Loans: 7% – 8.5% per annum
- Kishor Loans: 8.5% – 10% per annum
- Tarun Loans: 9% – 12% per annum
Banks may provide rebate or subsidy for women entrepreneurs or first-time borrowers under government initiatives like Stand Up India and Digital MSME.
PM Mudra Loan Yojana 2025 Latest Updates
For 2025, the government announced a loan limit increase to ₹20 lakh under the Mudra Yojana. This enhancement aims to:
- Support scale-up operations for successful small enterprises.
- Encourage new-age startups and self-reliant entrepreneurs.
- Promote employment generation in rural and semi-urban regions.
- Simplify collateral-free lending through digital banking.
List of Banks Offering PM Mudra Loan Yojana 2025
Over 1200 financial institutions are authorized to provide Mudra loans, including:
- State Bank of India (SBI).
- Punjab National Bank (PNB).
- Bank of Baroda.
- HDFC Bank.
- ICICI Bank.
- Axis Bank.
- Union Bank of India.
- Canara Bank.
- Indian Bank.
- Regional Rural Banks and NBFCs.
PM Mudra Loan Yojana 2025 for Women Entrepreneurs
The government encourages female entrepreneurship under the Mudra Yojana with special interest rebates and faster processing. Schemes like Mahila Uddyam Nidhi, Annapurna Yojana, and Women Enterprise Program run under the PMMY umbrella to boost participation of women in self-employment.
Conclusion – PM Mudra Loan Yojana 2025
PM Mudra Yojana in 2025 continues to empower small businesses and entrepreneurs by providing easy, collateral-free loans to help them start or expand. The scheme remains a key tool for financial inclusion and has seen positive trends, including a decline in loan defaults.
FAQ’s About PM Mudra Loan Yojana 2025
The maximum loan amount has been increased to ₹20 lakh under the Tarun Plus category as part of the 2025 update.
No, the scheme provides collateral-free loans, making it easier for small entrepreneurs to access credit without security deposits.
Small and micro businesses, shopkeepers, artisans, traders, startups, and allied agriculture entrepreneurs residing in India can apply.
Applicants can apply online through the official Udyamimitra portal (udyamimitra.in) or through the websites of participating banks and financial institutions.
The repayment tenure typically ranges from 5 to 7 years depending on the loan amount and business requirements.
Yes, women entrepreneurs are strongly encouraged to apply for Mudra loans and benefit from the scheme.