What is PM Mudra Yojana?
Pradhan Mantri Mudra Yojana (PMMY) is a government scheme launched in 2015 to provide business loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises. The biggest advantage: No collateral or guarantee required!
- Loans from ₹50,000 to ₹10 lakh for small businesses
- No security or collateral needed
- Available through all banks, NBFCs, and MFIs
- Special focus on SC/ST, women, and minority entrepreneurs
- Over 40 crore loans disbursed since launch
Official Government Websites
Mudra Loan Categories
| Category | Loan Amount | Business Stage | Interest Rate |
|---|---|---|---|
| Shishu | Up to ₹50,000 | Start-up / New business | 10-12% p.a. |
| Kishore | ₹50,001 - ₹5 Lakh | Mid-stage / Growing business | 11-14% p.a. |
| Tarun | ₹5,00,001 - ₹10 Lakh | Established / Expansion | 12-16% p.a. |
Who Can Apply for Mudra Loan?
✅ Eligible Businesses
- Small shopkeepers & vendors
- Fruit/vegetable sellers & food stall owners
- Artisans, tailors, & handicraft workers
- Small manufacturers & machine operators
- Auto/taxi/truck drivers (fleet owners)
- Salon, spa & beauty parlour owners
- Repair shops & service centers
❌ Not Eligible
- Farm/agriculture activities (covered by other schemes)
- Corporate entities or large enterprises
- Existing bank loan defaulters (CIBIL issues)
Documents Required for Mudra Loan
Identity & Address Proof
- Aadhaar Card
- PAN Card
- Voter ID / Passport
- Utility bills or rent agreement
Business Documents
- Business plan or project report
- Business registration / GST certificate (if applicable)
- Quotation of machinery/equipment (if any)
- Last 6 months bank statements
Other Documents
- Passport-size photographs
- Caste certificate (for SC/ST benefits)
- Proof of business existence (utility bill, lease, etc.)
How to Apply for Mudra Loan
Choose Your Category
Decide between Shishu (up to ₹50K), Kishore (₹50K-5L), or Tarun (₹5L-10L) based on your business needs.
Prepare Business Plan
Create a simple business plan covering: what your business does, how the loan will be used, expected revenue, and repayment plan.
Visit Bank or Apply Online
Visit any public/private bank, NBFC, or MFI branch. Or apply online via Udyamimitra.in or your bank's website.
Submit Application & Documents
Fill the Mudra loan application form and submit all required documents. The bank will verify your details.
Loan Assessment & Approval
Bank assesses your business plan, credit score, and repayment capacity. Approval typically takes 7-15 working days.
Loan Disbursement
After approval, loan is disbursed to your bank account and a Mudra Card may be issued for working capital needs.
Mudra Loan Interest Rates & Repayment
| Parameter | Details |
|---|---|
| Interest Rate | 10-16% p.a. (varies by bank & category) |
| Processing Fee | 0.5-1% of loan amount (some banks waive it) |
| Repayment Period | 12 months to 5 years |
| Collateral | None required |
| Guarantee | Covered under CGFMU (Credit Guarantee Fund) |
Frequently Asked Questions About Mudra Loan
Interest rates vary by bank: Shishu: 10-12%, Kishore: 11-14%, Tarun: 12-16% per annum. Women and SC/ST entrepreneurs may get preferential rates.
No. Mudra loans up to ₹10 lakh do not require any collateral, security, or third-party guarantee.
Yes! Apply through Udyamimitra.in, your bank's website, or PSB Loans in 59 Minutes. You can also visit any bank branch.
A Mudra Card is a debit card linked to your loan account for drawing working capital. You can withdraw cash as needed, and interest is charged only on the amount used — similar to a credit card.
Agricultural activities, corporate entities, existing loan defaulters, and businesses with turnover above ₹10 crore are not eligible for Mudra loans.