Pradhan Mantri Mudra Yojana (PMMY) is a loan from Government of India — MUDRA / SIDBI for any individual 18+ years old with a business plan for small business enterprise in manufacturing, trading, services, or allied…. It provides Collateral-free loans: Shishu (up to Rs 50,000), Kishore (Rs 50,001-Rs 5 lakh), Tarun (Rs 5-Rs 10 lakh), Tarun Plus (Rs 10-Rs 20 lakh), for manufacturing, Trading, Services, Allied Agriculture - non-farm. Applications are open on a rolling basis.
Key facts
| Amount / benefit | Collateral-free loans: Shishu (up to Rs 50,000), Kishore (Rs 50,001-Rs 5 lakh), Tarun (Rs 5-Rs 10 lakh), Tarun Plus (Rs 10-Rs 20 lakh) |
|---|---|
| Provider | Government of India — MUDRA / SIDBI |
| Where | Pan-India |
| Sector | Manufacturing, Trading, Services, Allied Agriculture - non-farm |
| Deadline | Rolling / always open |
| Loan limit increase | Increased from Rs 10 lakh to Rs 20 lakh effective October 24, 2024 |
| Total loans sanctioned | Over 52 crore loans worth Rs 32.61 lakh crore since inception |
| Women beneficiaries | 68% of all Mudra beneficiaries |
| Loan categories | 4 categories based on business growth stage: Shishu, Kishore, Tarun, Tarun Plus |
What is Pradhan Mantri Mudra Yojana?
PMMY is a flagship collateral-free microfinance scheme launched in April 2015 to facilitate easy access to credit for non-corporate, non-farm micro and small entrepreneurs. The scheme provides loans up to Rs 20 lakh (increased from Rs 10 lakh in October 2024) through four categories: Shishu (up to Rs 50,000), Kishore (Rs 50,001-Rs 5 lakh), Tarun (Rs 5-Rs 10 lakh), and Tarun Plus (Rs 10-Rs 20 lakh). Loans are disbursed by banks, NBFCs, and MFIs without collateral requirement. It is run by Government of India — MUDRA / SIDBI.
The support is delivered through the programme’s own structure, and the form it takes is set by the issuing authority. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in manufacturing, trading, services, allied agriculture - non-farm. Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
Who is eligible for Pradhan Mantri Mudra Yojana?
Any individual 18+ years old with a business plan for small business enterprise in manufacturing, trading, services, or allied agriculture sectors. Non-corporate, non-farm entrepreneurs eligible. Women account for 68% of beneficiaries. Preference given to first-time entrepreneurs and those without prior access to formal credit.
How much does Pradhan Mantri Mudra Yojana give, and in what form?
Collateral-free loans: Shishu (up to Rs 50,000), Kishore (Rs 50,001-Rs 5 lakh), Tarun (Rs 5-Rs 10 lakh), Tarun Plus (Rs 10-Rs 20 lakh).
Borrower applies to any Member Lending Institution (banks, RRBs, SFBs, NBFCs, MFIs) with a basic business plan. Loans are collateral-free and unsecured. Credit is provided based on applicant credibility and business viability. Member Lending Institutions disburse loans directly; SIDBI provides refinance support to MLIs.
How to apply for Pradhan Mantri Mudra Yojana
- Download one-page Shishu application form or 3-page Kishore/Tarun application from MUDRA website
- Approach any Member Lending Institution (bank, NBFC, or MFI)
- Submit application with business plan to the lender
- Lender evaluates and sanctions the loan within stipulated timeframe
- Receive loan disbursement directly to bank account without collateral
Documents required for Pradhan Mantri Mudra Yojana
- Business plan
- Identity proof (Aadhaar/PAN/Voter ID)
- Address proof (electricity bill/telephone bill/rent agreement)
- Bank account details
- For Kishore/Tarun categories: Detailed project report for projects above Rs 5 lakh
Frequently asked questions
Is collateral required for MUDRA loans?
No, MUDRA loans are completely collateral-free and unsecured.
What is the difference between the four loan categories?
Shishu (up to Rs 50,000) for new entrepreneurs; Kishore (Rs 50,001-Rs 5 lakh) for growing businesses; Tarun (Rs 5-Rs 10 lakh) for established businesses; Tarun Plus (Rs 10-Rs 20 lakh) for previously successful Tarun borrowers.
Who can apply for MUDRA loans?
Any individual 18+ years old with a viable business plan in manufacturing, trading, services, or allied agriculture sectors. Non-corporate, non-farm entrepreneurs are eligible.
Which institutions disburse MUDRA loans?
Member Lending Institutions including Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Non-Banking Financial Companies, and Micro Finance Institutions.
Related programmes
Browse similar loan programmes. CapEasy handles this under Working-capital loan advisory.
Source and verification
Official programme page: mudrayojana.gov.in. Verification date pending. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.