Here is the whole scheme in one place: what you get, who qualifies, how to apply, and what to check.
| Scheme | Pradhan Mantri Mudra Yojana (PMMY) |
|---|---|
| Ministry or Department | Ministry of Finance, Govt of India |
| Benefit | Collateral-free loans from Rs 50,000 up to Rs 20 lakh, in four categories |
| Who can apply | Small entrepreneurs, shopkeepers, service providers, manufacturers and small business owners |
| How it is given | Through banks, regional rural banks, small finance banks, NBFCs and microfinance institutions |
| Apply at | mudra.org.in or your nearest bank or lender branch |
| Cost to apply | Free |
Key points
- Four categories: Shishu, Kishor, Tarun and Tarun Plus.
- No collateral is needed, but the lender still checks your case.
- Loans can fund shops, small manufacturing, trade, transport, dairy, poultry and more.
- Loan amount and interest are decided by the lender under RBI rules.
So what exactly can you get?
Mudra loans come in four categories, based on loan size.
Shishu covers loans up to Rs 50,000. It is meant for very small starts.
Kishor covers loans above Rs 50,000 and up to Rs 5 lakh.
Tarun covers loans above Rs 5 lakh and up to Rs 10 lakh.
Tarun Plus covers loans above Rs 10 lakh and up to Rs 20 lakh. The government introduced it in 2024.
The loan can be used for working capital and for term finance. Interest rates are set by the lender in line with RBI rules, so amounts and rates can change. Please confirm the current terms on the official site.
Who can apply, and who cannot?
The scheme is for small non-farm businesses, and for many small agriculture-linked activities.
Shops, service centres, small manufacturing units, traders, transport operators, dairy and poultry owners can apply.
Beekeeping and other agriculture-linked activities are also covered.
The lender decides eligibility based on your business needs, documents and repayment capacity. Even though no collateral is needed, the lender does scrutiny before approving a loan.
Why was this scheme started?
Mudra was launched to help small business owners who find it hard to get bank credit.
It is run under the Ministry of Finance. The aim is to help people become self-reliant through loans.
Government data says that by March 2026, large amounts were disbursed to women borrowers across all categories.
What documents should you keep ready?
Keep your identity proof, such as Aadhaar, PAN or voter ID.
Keep your address proof and a recent passport size photograph.
Keep your business details, such as the type of work, location and any existing registration.
Keep your bank statements and any quotations or project details for the purchase you plan to make.
Your lender may ask for other papers, so check with them before you visit.
How do you apply online, step by step?
Visit mudra.org.in and read the scheme details for your category.
Many lenders also accept applications through their own online portal or app.
Fill in your personal and business details, and choose the loan category.
Upload your documents, submit the form, and note your application number.
- 1Visit mudra.org.inRead the scheme details for your loan category.
- 2Use a lender's portal or appMany lenders also accept applications through their own online portal or app.
- 3Fill in your detailsEnter your personal and business details and choose the loan category.
- 4Upload and submitUpload your documents, submit the form and note your application number.
Graphic: News Anek, from the facts in this report
How do you apply offline?
You can visit any bank branch, regional rural bank, small finance bank or NBFC.
Ask for a Mudra loan application form and take your documents with you.
You can also approach a microfinance institution near you.
Ask the staff about the interest rate, repayment period and processing charges in writing.
How do you check the status, and what if the loan is delayed?
Ask your lender for your application number and check the status with them.
If the loan is delayed, first speak to the branch manager and ask for a written reason.
If the issue is not solved, you can raise a complaint on the official website or with the RBI banking ombudsman.
What should you watch out for?
Never pay any agent or person who promises a Mudra loan for a fee.
Apply only through a bank, a registered lender or the official website.
Always read the interest rate, processing fee and repayment terms before signing.
Frequently asked questions
Do I need to give collateral for a Mudra loan?
No, the loans in all four categories are collateral-free. The lender still checks your eligibility and repayment capacity.
Which category should I apply for?
Choose based on how much money you need. Shishu is up to Rs 50,000, Kishor up to Rs 5 lakh, Tarun up to Rs 10 lakh, and Tarun Plus up to Rs 20 lakh.
Can women get a Mudra loan?
Yes. Women borrowers are a large part of the scheme, and many loans have gone to women under each category.
Who gives the Mudra loan?
Banks, regional rural banks, small finance banks, NBFCs and microfinance institutions can give Mudra loans.
Is there a fee to apply?
Applying through the official site or a bank is free. Ask your lender about any processing fee before you sign.
Official links
This guide is based on official scheme rules. Rules and amounts can change, so always confirm on the official website before you apply. News Anek is not a government website.
