Security Related Expenditure (Relief and Rehabilitation) 2026

The Pradhan Mantri Mudra Yojana (PMMY) is a government scheme that provides loans of up to Rs Read More... 20 lakh to small businesses in the non-farm sector, including manufacturing, trading, and service industries. Read less

Details

The Pradhan Mantri Mudra Yojana (PMMY) is a significant initiative by the Government of India aimed at empowering small businesses and entrepreneurs. It focuses on providing financial support to micro-enterprises that are crucial for generating income and employment across the country.

What Is This Scheme?

PMMY helps micro-enterprises get loans up to Rs 20 lakh. These businesses can be in manufacturing, trading, or service sectors. Even activities related to agriculture, like dairy farming or poultry, are covered. The scheme provides loans through various banks and financial institutions to non-corporate, non-farm small businesses.

Who Can Benefit From This Scheme?

This scheme is designed for a wide range of small businesses and individual entrepreneurs. This includes sole proprietorships, partnership firms, small manufacturing units, service providers, shopkeepers, fruit and vegetable vendors, truck operators, food stalls, repair shops, artisans, and food processors. Basically, anyone running a small business that needs a loan to grow can potentially benefit.

Why This Scheme Is Important

The Mudra Yojana is vital for fostering entrepreneurship and financial inclusion at the grassroots level. By providing access to credit, it helps millions of small businesses expand, create jobs, and contribute to the economy. It specifically targets those who might find it difficult to get loans from traditional banking channels, thereby boosting economic activity and self-employment.

Objective

The Pradhan Mantri Mudra Yojana (PMMY) is a government scheme that provides loans of up to Rs 20 lakh to small businesses in the non-farm sector, including manufacturing, trading, and service industries.

Benefits

1. Cash relief to Kashmiri and Jammu migrants settled in J&K: ₹3,250 per person per month, with a maximum of ₹13,000 per family per month.

2. Cash relief to Kashmiri migrants settled in Delhi/NCR: ₹3,250 per person per month, with a maximum of ₹13,000 per family per month.

3. Cash relief to migrants in the hilly areas of the Jammu division, equivalent to Kashmiri migrants: ₹2,500 per person per month, with a maximum of ₹10,000 per family per month.

4. Relief for ration/fodder to migrants in hilly areas of Jammu division, including 9 kg of Atta, 2 kg of Rice per person per month, and 10 litres of kerosene oil per family per month, along with ₹300 per cattle per month for fodder.

5. Basic dry ration for needy migrants, including 9 kgs of rice, 2 kgs of Atta per person, and 1 kg of sugar per family per month, with additional ex-gratia relief for property loss, up to ₹10,00,000, divided between immovable and movable property.

The Government of India also supports employment opportunities for Kashmiri migrants, providing 3000 youths with salaries until they secure regular positions in the State Government. Additionally, an extra 3000 State Government jobs were approved for Kashmiri migrants under PMDP-2015.

Financial support is directed towards the rehabilitation of migrants, including the construction of transit accommodations and housing facilities, along with scholarships, employment opportunities, and waivers on interest for loans. This includes:

1. One-time compensation of ₹5,00,000 for the Next of Kin (NoK) of civilians killed in militancy-related incidents.

2. Pension of ₹750 per month for widows of civilians killed in militancy-related violence.

3. Scholarships for orphans affected by militancy, with an additional ₹150 per month for vocational/technical training.

4. Construction of 6000 transit accommodations for Kashmiri migrants with State Government jobs.

5. An advance of ₹19,00,00,000 crore for the Corpus Fund of the Jammu and Kashmir State Rehabilitation Council.

Ex-gratia payments of ₹5 lakh have been extended to the Next of Kin of JKP/SPOs/CAPFs/Army personnel deceased due to violence. Relief measures, including the construction of bunkers, have been initiated to support those living in areas affected by Cross Border Firing.
A surrender policy has been put in place with a stipend of ₹2,000 per month for three years and an immediate grant of ₹1,50,000. Incentives for the surrender of weapons have also been specified.
Relief is offered to victims of cross-border firing, terrorism, and militancy, including compensation for housing, crop, and livestock losses. The compensation for the loss of milch animals has been increased from ₹30,000 per animal to ₹50,000 per animal.
Furthermore, the Government of India provides ex-gratia cash relief of ₹5,00,000 to the Next of Kin or victims with over 50% disability due to Cross Border Firing, effective from 24.08.2016. Financial assistance of ₹5,50,000 per family is provided to 5764 families of West Pakistani Refugees (WPRs).

Sources and references

Guidelines & Application Form

Eligibility Criteria

To be eligible for a Mudra loan, you must fall under one of these categories:

Individuals
Proprietorships
Partnership Firms
Private Limited Companies
Public Companies
Any other legal business structures

Important Notes:

You should not have any past defaults with banks or financial institutions and must have a good credit history.
Individual borrowers might need to show they have the necessary skills or experience for the business they plan to start or expand.
Educational qualifications might be required, depending on the nature and needs of the proposed business activity.

How To Apply

You can apply for a Mudra loan through various Member Lending Institutions (MLIs). These include:

Public Sector Banks
Private Sector Banks
State Cooperative Banks
Regional Rural Banks
Micro Finance Institutions (MFIs)
Non-Banking Finance Companies (NBFCs)
Small Finance Banks (SFBs)
Other financial intermediaries approved by Mudra Ltd.

Visit your nearest branch of any of these institutions and request the loan application form. Fill it out completely and submit it along with the required documents. The MLI will process your application based on their internal guidelines and the Mudra scheme’s broad framework.

Note: MUDRA or PMMY does not use any agents or middlemen. Be cautious of individuals claiming to represent MUDRA for loan facilitation.

Interest Rates & Fees: Interest rates are set by the lending institutions according to RBI guidelines. For 'Shishu' loans (up to Rs. 50,000), upfront fees are often waived by most banks.

Documents Required

The documents needed can vary slightly based on the loan category (Shishu, Kishore, Tarun, Tarun Plus) and the lending institution. Here’s a general list:

For Shishu Loans (up to Rs. 50,000)

Proof of Identity: Self-attested copies of Voter ID, Driving Licence, PAN Card, Aadhaar Card, Passport, or any government-issued photo ID.
Proof of Residence: Recent utility bills (phone, electricity, not older than 2 months), property tax receipts, Voter ID, Aadhaar Card, Passport, or a bank passbook/statement attested by the bank. Domicile certificates or certificates from local authorities are also accepted.
Photographs: Two recent (not older than 6 months) coloured passport-sized photographs of the applicant.
Quotations: Quotations for machinery or items you plan to purchase. Include supplier names and prices.
Business Proof: Copies of relevant licenses, registration certificates, or other documents proving the ownership, identity, and address of your business unit, if applicable.

For Kishore, Tarun, and Tarun Plus Loans (above Rs. 50,000)

Proof of Identity: Self-attested copies of Voter ID, Driving Licence, PAN Card, Aadhaar Card, or Passport.
Proof of Residence: Recent utility bills (phone, electricity, not older than 2 months), property tax receipts, Voter ID, Aadhaar Card, or Passport for proprietor/partners/directors.
Photographs: Two recent (not older than 6 months) coloured passport-sized photographs of the applicant.
Business Proof: Copies of relevant licenses, registration certificates, or other documents related to the business ownership, identity, and address.
Defaulter Status: Confirmation that you are not a defaulter with any bank or financial institution.
Bank Statements: Last six months' statement of accounts from your current banker, if you have one.
Financial Statements: Balance sheets for the last two years, along with income tax and sales tax returns (required for loans of Rs. 2 lakh and above).
Projected Financials: Projected balance sheets for one year (for working capital) or the loan period (for term loans) (required for loans of Rs. 2 lakh and above).
Sales Details: Details of sales achieved in the current financial year up to the application date.
Project Report: A detailed report on the proposed project, covering technical and economic viability.
Business Registration Documents: Memorandum and Articles of Association for companies, or Partnership Deed for firms.
Asset & Liability Statement: If third-party guarantee is not provided, an asset and liability statement from borrowers, including directors and partners, might be required to assess net worth.

FAQ’s

Can I get a Mudra loan to buy a CNG tempo or taxi?

Yes, Mudra loans are available for purchasing vehicles like CNG tempos or taxis, provided you intend to use them for commercial purposes and to generate income.

What is the processing time for a Shishu loan under PMMY?

According to the Banking Codes and Standard Board of India (BCSBI), loan applications up to Rs. 5 lakh should generally be processed and decided within 2 weeks.

Do I need to submit income tax returns for the last two years for a Rs. 20 lakh PMMY loan?

While income tax returns are not typically insisted upon for small loan amounts, the specific document requirements will be communicated by the lending institution based on their internal policies and guidelines.

If I have a savings bank account, can I still get a Mudra loan?

Absolutely. You can approach the bank where you hold your savings account and apply for a Mudra loan using their provided format. The loan terms will be determined by the bank's policies, guided by RBI regulations, and based on the needs of your income-generating activity and its expected cash flow.

Are Khadi-related activities eligible for Mudra loans?

Yes, Mudra loans can be availed for any activity that generates income. Since Khadi is an eligible activity within the textile sector, loans taken for income generation through Khadi work can be covered under the scheme.