PM Mudra Yojana gives small and micro businesses collateral-free loans of up to ₹20 lakh to start or grow non-farm, income-generating activities. There is no need to pledge land, gold or property — the loans are backed by a government credit guarantee. This guide explains the loan categories, who is eligible, and how to apply through your bank or the government aggregator portals.
| Scheme | Pradhan Mantri MUDRA Yojana (PMMY) |
| Loan amount | Up to ₹20 lakh (collateral-free) |
| Categories | Shishu (≤₹50k), Kishore (₹50k–₹5L), Tarun (₹5L–₹10L), Tarun Plus (₹10L–₹20L) |
| For | Non-corporate, non-farm income-generating micro units |
| Guarantee | Covered under CGFMU (no third-party collateral) |
| Where to apply | Any bank/NBFC/MFI; udyamimitra.in, JanSamarth portal |
The four Mudra loan categories
- Shishu — up to ₹50,000, for new or very early-stage businesses.
- Kishore — above ₹50,000 up to ₹5 lakh, for established businesses needing expansion.
- Tarun — above ₹5 lakh up to ₹10 lakh, for well-established businesses.
- Tarun Plus — above ₹10 lakh up to ₹20 lakh, for entrepreneurs who have successfully repaid a Tarun loan.
Who is eligible?
Any Indian citizen with a viable non-farm business plan — proprietorships, partnerships, small manufacturers, shopkeepers, service providers, artisans, food vendors and more. The activity must be income-generating and non-agricultural (though allied activities like dairy, poultry and beekeeping are covered).
Documents you typically need
- Identity & address proof (Aadhaar, etc.)
- Business proof / plan and quotation for the asset to be purchased
- Bank statements and, for larger loans, past business financials
How to apply
- Through a bank: approach any public/private bank, RRB, NBFC or MFI, fill the Mudra loan application and submit your documents.
- Online aggregators: apply via udyamimitra.in or the JanSamarth portal, which let you compare offers from multiple lenders.
- The lender assesses your plan; on approval, funds are disbursed (as a term loan or a Mudra card/overdraft for working capital).
Things to know
- Loans are collateral-free under CGFMU; genuine business viability matters most.
- A reasonable credit history helps for Kishore/Tarun; Shishu focuses on the business idea.
- Interest rates vary by lender and risk — compare before you borrow.
Frequently asked questions
Is any collateral required?
No — Mudra loans are collateral-free and backed by a government guarantee fund.
Can I get ₹20 lakh directly?
Tarun Plus (₹10–20 lakh) is meant for entrepreneurs who have already repaid a Tarun loan; first-time borrowers usually start lower.
Can salaried people apply?
Mudra is for business/self-employment activities, not personal or salaried needs.
Information last verified: 16 July 2026. Categories, limits and terms can change — confirm with the lender or on the official Mudra/JanSamarth portals before applying.