Pradhan Mantri Mudra Yojana (PMMY)
Collateral-free loans up to ₹20 lakh for non-corporate, non-farm micro and small enterprises.
Pradhan Mantri Mudra Yojana (PMMY), launched on 8 April 2015, provides collateral-free loans to micro and small businesses through banks, NBFCs and microfinance institutions. Loans are extended under four tiers — Shishu, Kishore, Tarun and Tarun Plus — based on the stage of the business, and are managed by the Micro Units Development and Refinance Agency (MUDRA).
At a Glance
- Government level
- Central
- State
- All India
- Category
- Business & MSME
- Target beneficiaries
- Micro and small non-farm business owners
Benefits
- Shishu: loans up to ₹50,000, for new or very small businesses
- Kishore: loans above ₹50,000 and up to ₹5 lakh
- Tarun: loans above ₹5 lakh and up to ₹10 lakh
- Tarun Plus: loans above ₹10 lakh and up to ₹20 lakh, for borrowers who have successfully repaid a Tarun loan
- No collateral required for the loan
- MUDRA Card (RuPay-based) available for flexible working-capital withdrawal
Eligibility
- Must run or plan to start a non-farm income-generating micro or small enterprise in manufacturing, trading, services or allied agricultural activities
- Credit requirement must be within the applicable MUDRA loan limit
- Eligible entities include individuals, proprietorships, partnerships and small companies
Documents Required
- Identity and address proof (Aadhaar/PAN)
- Business registration or proof of business activity
- Bank statements (where applicable)
- Passport-size photographs
How to Apply
- 1.Choose the appropriate loan category (Shishu, Kishore, Tarun or Tarun Plus) based on funding need
- 2.Apply through a participating bank, NBFC or MFI, or via the Udyami Mitra portal
- 3.Submit business details, purpose of loan and required documents for evaluation
- 4.On approval, funds are disbursed directly to the business account
Official Source
MUDRA (Micro Units Development and Refinance Agency)
Visit Official SourceImportant Information
Government scheme rules, benefit amounts and eligibility criteria can change. Always confirm current details on the official source above before applying, and never pay any third party to access a government service.
Frequently Asked Questions
What are the loan categories under PMMY?
Shishu (up to ₹50,000), Kishore (₹50,000–₹5 lakh), Tarun (₹5 lakh–₹10 lakh) and Tarun Plus (₹10 lakh–₹20 lakh).
Is collateral required for a Mudra loan?
No. Mudra loans under PMMY are collateral-free.
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