Pradhan Mantri Mudra Yojana — collateral-free loans up to Rs 10 lakh for small businesses
Government of India (Micro Units Development & Refinance Agency — MUDRA)
Overview
Collateral-free loans of up to Rs 10 lakh for non-corporate, non-farm micro and small enterprises — shopkeepers, traders, small manufacturers and service providers. First-time entrepreneurs and startups can also apply.
Loans come in three categories by business stage: Shishu (up to Rs 50,000), and Kishore and Tarun for larger amounts, up to a maximum of Rs 10 lakh. Smaller loans carry low or no processing fees, and many banks offer concessional rates to women entrepreneurs. A MUDRA Card (RuPay debit card) may be issued for drawing working capital.
Apply at any bank, microfinance institution (MFI) or NBFC that offers MUDRA loans, or through their online portal.
At a glance
- Administering authority
- Government of India (Micro Units Development & Refinance Agency — MUDRA)
- Scheme type
- Business & Finance
- Place of posting / area
- All India
- Application mode
- Online and offline
- Important dates
- Applications accepted year-round
Benefits
- Collateral-free loans of up to Rs 10 lakh
- Three categories: Shishu (up to Rs 50,000), Kishore and Tarun (larger amounts)
- Low or no processing fees on smaller loans (especially Shishu)
- Flexible repayment aligned with income and business cycles
- MUDRA Card (RuPay debit card) for working capital
- Concessional interest for women entrepreneurs at many banks
Eligibility
- Indian citizen above 18 years of age
- Non-corporate, non-farm micro or small enterprise (e.g. shopkeeper, trader, manufacturer, service provider)
- The business must be income-generating
- Not a defaulter to any bank or financial institution
- A viable plan for starting or expanding the business
- Existing small businesses, startups and first-time entrepreneurs are all eligible
Required documents
- Identity proof
- Address proof
- Business plan
- Financial details — investment needs and expected income
How to apply
- Visit a bank, MFI or NBFC that offers MUDRA loans, or apply on its online portal
- Fill in the form for the category you need (Shishu, Kishore or Tarun)
- Submit identity proof, address proof, business plan and financial details
- Describe the business (existing or proposed), its investment needs and expected income
- The lender verifies the application and your creditworthiness
- On approval, the loan is paid to your bank account; a MUDRA Card may be issued
Last updated: 1 Nov 2026
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