Steps to Apply for PM Mudra Loan: A Complete Guide

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme by the Indian government aimed at providing financial assistance to micro-enterprises and small businesses. Through PMMY, individuals can avail of loans to start or expand their businesses. 

This post serves as a detailed guide on how to apply for a PM Mudra loan, outlining the step-by-step process, eligibility criteria, and loan categories available under the scheme.

Step 1: Prepare the Necessary Documents

Before applying for a PM Mudra loan, gather these documents:

  • ID Proof: Include the Aadhaar, voter ID, PAN card, or driving licence to verify your identity.

  • Address Proof: Submit utility bills like electricity, telephone, gas, or water bills to confirm your address.

  • Proof of Business: Provide documents such as a business registration certificate to prove your business’s legitimacy.

Having these documents ready will speed up the loan application process and ensure a smoother experience.

Step 2: Approach a Financial Institution

To initiate the process of applying for a MUDRA loan, individuals must visit a branch of any reputable financial institution operating in India. These institutions commonly provide loans under the Pradhan Mantri Mudra Yojana (PMMY) and are well-equipped to assist applicants throughout the application procedure.

Financial institutions offer valuable guidance and support to applicants, ensuring they understand the loan requirements, eligibility criteria, and documentation needed for a successful application. 

Additionally, bank representatives can address any queries or concerns that applicants might have, offering personalised assistance adapted to their specific circumstances.

Step 3: Fill in the Loan Application Form

Applicants need to follow either the online or offline application process:

  • Online Application Process:

To apply for a MUDRA loan online:

  1. Begin by downloading the loan application form from the official website of your chosen bank.

  2. Complete the form with all necessary details and attach the relevant documents as specified.

  3. Submit the completed application form through the bank’s online portal to receive a reference ID or number.

Subsequently, a bank representative will contact you to guide you through the remaining loan formalities. Remember to keep the reference ID handy for any future correspondence.

  • Offline Application Process:

For those preferring the offline route, visit the nearest bank branch eligible to offer MUDRA loans under PMMY. Obtain the loan application form from the bank’s counter and duly fill it out, ensuring all required details are provided accurately. Submit the completed form along with all necessary documents to the bank personnel at the counter. Proceed to complete any additional loan formalities and procedures as directed by the bank. 

Following thorough verification of all submitted documents, your loan application will be reviewed and approved.

Eligibility Criteria

The eligibility criteria for obtaining a PMMY loan are designed to be inclusive, allowing a wide range of individuals and enterprises to benefit from financial assistance:

  • Indian Citizenship: Any Indian citizen engaged in non-agricultural activities, including manufacturing, trading, or services, is eligible to apply for a PMMY loan. This criterion ensures that individuals across various sectors and industries have access to funding support to fulfil their entrepreneurial aspirations.

  • Enterprise Status: Both new and existing enterprises are eligible for PMMY loans, provided their credit requirements do not exceed Rs.10 lakh. This inclusive approach accommodates businesses at different stages of development, from startups to established ventures, enabling them to access affordable credit and fuel their growth ambitions.

By adhering to these eligibility criteria, the PMMY scheme aims to empower individuals and enterprises across India, promoting entrepreneurship, economic development, and job creation in diverse sectors of the economy.

Loan Categories

The credit offerings under the Pradhan Mantri Mudra Yojana (PMMY) are structured into three distinct categories, each catering to different credit needs and business requirements:

  • Shishu: This category is adapted for micro-entrepreneurs and startups seeking modest financing to kickstart their business ventures. Loans under the Shishu category extend up to Rs. 50,000, providing small-scale entrepreneurs with essential financial support to initiate their entrepreneurial journey confidently.

  • Kishore: The Kishore category targets enterprises with slightly larger credit needs, ranging from Rs. 50,001 to Rs. 5,00,000. This segment accommodates businesses at intermediate stages of growth, offering substantial funding to expand operations, invest in equipment, or scale their business activities.

  • Tarun: For enterprises with more substantial credit requirements, the Tarun category provides loans ranging from Rs. 5,00,001 to Rs. 10,00,000. This category caters to established businesses seeking significant capital infusion to fuel expansion initiatives, diversify product offerings, or enhance market penetration strategies.


The Pradhan Mantri Mudra Yojana offers a significant opportunity for aspiring entrepreneurs and small business owners to access affordable credit and realise their business dreams.


By following the simple steps outlined in this guide and meeting the eligibility criteria, individuals can successfully apply for a PM Mudra loan and take their business to new heights.

About The Author