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HomeGovt. SchemesPM MUDRA Yojana (Micro Units Development & Refinance Agency)
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PM MUDRA Yojana (Micro Units Development & Refinance Agency)

Ministry of Finance
Collateral-free loan scheme for small businesses and micro-enterprises up to ₹10 lakh — one of India's most successful MSME schemes.
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Overview & About

Collateral-free loan scheme for small businesses and micro-enterprises up to ₹10 lakh — one of India's most successful MSME schemes.

PM MUDRA Yojana provides institutional credit to micro and small businesses that are unable to access formal banking credit. Loans are provided without collateral through banks, MFIs, and NBFCs. Three categories — Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), and Tarun (₹5–10 lakh) — cater to different stages of business growth.

💰 Key Facts
Authority Central Government
Shishu Up to ₹50,000
Kishore ₹50,000–₹5,00,000
Tarun ₹5,00,000–₹10,00,000
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Benefits

  • Shishu Loan: up to ₹50,000 (start-up stage)
  • Kishore Loan: ₹50,000–₹5,00,000 (growth stage)
  • Tarun Loan: ₹5,00,000–₹10,00,000 (expansion)
  • No collateral required
  • Low interest rate (7–12% typically)
  • Mudra Card for working capital (like credit card)

Eligibility Criteria

  • Any individual, proprietor, or partnership in India
  • Non-corporate micro/small enterprise
  • Business in manufacturing, trading, or service sector
  • Good credit history (for larger loans)
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Required Documents

Aadhaar, PAN card, Bank account, Business proof, Identity & address proof, Quotation/project report for equipment
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How to Apply

1
Visit any public/private bank, NBFC, or Microfinance Institution
2
Or apply online at mudra.org.in
3
Choose Shishu/Kishore/Tarun category
4
Submit business plan and documents
5
Loan processed within 7–10 working days

Frequently Asked Questions

Do I need collateral for MUDRA loan?
No, MUDRA loans do not require any collateral or guarantor. The loan is covered by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Can I get MUDRA loan for farming?
MUDRA loans are primarily for non-farm businesses. For farm activities, Kisan Credit Card (KCC) is the appropriate scheme.
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Quick Facts

Authority Central Government
Shishu Up to ₹50,000
Kishore ₹50,000–₹5,00,000
Tarun ₹5,00,000–₹10,00,000

Need Help?

For queries, visit the official ministry website or call the helpline.

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