Pradhan Mantri MUDRA Yojana (PMMY)
MUDRA loans are collateral-free loans of up to ₹20 lakh for small, non-corporate businesses, given through banks, NBFCs and microfinance institutions.
Last updated 31 October 2026Not yet verified against the latest official notification
Who can apply
Individuals and small businesses starting or growing an income-generating activity in manufacturing, trading, services or activities allied to agriculture.
- You run, or want to start, a non-corporate, non-farm small or micro enterprise, or an activity allied to agriculture.
- You meet the lending institution’s normal credit checks.
Benefits
- Shishu: loans up to ₹50,000.
- Kishore: above ₹50,000 and up to ₹5 lakh.
- Tarun: above ₹5 lakh and up to ₹10 lakh.
- Tarun Plus: above ₹10 lakh and up to ₹20 lakh, only for borrowers who have taken and fully repaid a Tarun loan.
- No collateral required. Loans are covered by a government credit guarantee.
Documents you will need
- Identity and address proof (such as Aadhaar)
- Business plan or quotation for the machinery/items you want to buy
- Proof of business address, and business registration (such as Udyam) where available
- Bank statements, and your category certificate if applicable
The exact list can vary by state and office. Carry originals and photocopies.
How to apply
- Prepare a simple plan of what the loan is for and how much you need.
- Visit a bank, NBFC or microfinance institution, or apply online through the Udyamimitra portal.
- Fill in the MUDRA application form for the right category (Shishu, Kishore, Tarun or Tarun Plus).
- The lender checks your documents and plan before sanctioning the loan.
When to apply: Open throughout the year.
Common mistakes to avoid
- Paying middlemen who promise a "guaranteed" MUDRA loan. There is no processing fee for applying through official channels.
- Asking for a bigger loan than your business plan can justify.
Frequently asked questions
Is a MUDRA loan free money?
No. It is a loan that must be repaid with interest. The interest rate is set by the lending bank.
Official links and sources
- MUDRA official website (www.mudra.org.in)
- Apply online (Udyamimitra) (www.udyamimitra.in)
to open the official application portal from here. Your account also lets you save schemes and results.
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