PSL micro target — eligibility, benefit, norms, documents (Central)

§1Who it is for

All micro enterprises: register on Udyam

Not a scheme you apply to

Micro enterprise as per Udyam classification. A micro enterprise has investment in plant & machinery/equipment up to Rs 2.5 crore and turnover up to Rs 10 crore (Gazette S.O. 1364(E), 21 Mar 2025, per RBI MSME FAQ).
Informal micro enterprises with an Udyam Assist Certificate are treated as micro enterprises for PSL (RBI MD MSME para 2.4).
Retail and wholesale trade count as MSME for PSL only (RBI MSME FAQ Q4).

Sub-target: 7.5% of ANBC or CEOBSE (whichever is higher) for micro enterprises, for domestic commercial banks, foreign banks with 20+ branches, RRBs and SFBs. Not applicable to foreign banks with fewer than 20 branches.
Urban co-operative banks: total PSL 60%, micro enterprises 7.5%.
Overall PSL target: 40% of ANBC for domestic commercial banks; 75% for RRBs.

PM Task Force targets for banks: 20% year-on-year growth in MSE credit, 10% annual growth in number of micro enterprise accounts, and 60% of MSE lending to micro enterprises (RBI MD MSME para 3.2).
In FY 2024-25, commercial banks achieved PSL of 42.10% of ANBC against a 40% target (DFS Year Ender).

Tick each one as you get it ready.

1
Nothing to apply for. Keep your Udyam registration current so the bank can count your loan as priority sector, which makes it more willing to lend.

Banks have a regulatory reason to lend to micro units. Udyam registration is the key that makes your loan count.

The target is at bank level, not borrower level. It does not guarantee you a loan.

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.