Direct answer. PM Mudra Yojana (PMMY) gives micro-loans up to ₹20 lakh to non-corporate non-farm small business owners. No collateral. 4 tiers: Shishu (≤ ₹50,000), Kishore (₹50k–5L), Tarun (₹5L–10L), Tarun Plus (₹10L–20L, added in 2024). Apply at any PSU bank, private bank, RRB, or NBFC. ₹0 application fee. Decision in 7–15 days.

• ₹50,000 – ₹20 lakh, no collateral.
• For small business: shop, kirana, manufacturing, services, transport, trading.
• NOT for agriculture (use KCC instead).
• Apply at any bank OR udyamimitra.in OR Jan Samarth portal.
• Helpline: 1800-180-1111 (toll-free).
• Stuck or rejected? 🪄 RTI in 60 sec.

PMMY launched 8 April 2015, run by MUDRA Ltd (subsidiary of SIDBI). 4.7 crore loans worth ₹17 lakh crore disbursed since launch. Tarun Plus (₹10–20 lakh tier) added in 2024 for businesses upgrading from Tarun.

Set by lender (within RBI guidelines):

• Shishu: 9–12% (PSU banks) / 11–14% (NBFCs)
• Kishore / Tarun: 10–14% (PSU banks)
• Tarun Plus: 12–16%
• Sector add-ons: women, SC/ST get small interest concession in some banks.

• Non-corporate small business — proprietorship, partnership, LLP (small).
• Non-farm activities — agriculture explicitly excluded.
• Existing or new business is fine (Shishu can be for starting; Tarun + needs operational history).
• Indian resident, age 18+.
• Aadhaar + PAN + bank account mandatory.
• No major default on existing loans.

• Manufacturing: tailoring, food processing, repair, fabrication, handicrafts.
• Trading: kirana, vegetable shop, restaurant, e-commerce reseller.
• Services: salon, photography, AC repair, courier, IT services.
• Transport: auto-rickshaw, taxi, e-rickshaw, mini-truck (vehicle loan under PMMY).
• Allied: dairy, poultry, beekeeping (not pure agriculture).

• Pure agriculture (KCC instead)
• Real estate / land trading
• Stock market / commodity trading

1. Aadhaar card (mobile-linked)
2. PAN card
3. Photograph — passport-size, recent
4. Address proof — Aadhaar / utility bill
5. Business proof (for Kishore/Tarun): GST registration / udyam / shop & establishment / partnership deed
6. Last 6 months bank statement
7. ITR last 2 years (Tarun + Tarun Plus typically)
8. Quote / pro forma invoice for the asset / inventory you'll buy with loan
9. Project report (Tarun + Tarun Plus): expected revenue, profit, repayment plan

1. Visit any PSU bank, private bank, or RRB branch.
2. Ask for “Mudra loan / PMMY”.
3. Submit form + documents.
4. Officer assesses + visits business (Kishore/Tarun).
5. Decision in 7–15 days.
6. On sanction: loan agreement, EMI auto-debit, MUDRA Card issued (working-capital component).

1. Visit https://udyamimitra.in OR https://www.jansamarth.in.
2. Register → enter business + financial details.
3. Multiple banks auto-bid for your application.
4. Pick best offer + complete bank's e-KYC.
5. Loan disbursed in 7–15 days.

• Wrong tier selection — applying for Tarun without operational history. Start with Shishu/Kishore, build, upgrade to Tarun.
• Trusting “Mudra agents” charging ₹5k-25k fees — Mudra is direct-to-bank. Agents = fraud.
• Vague project report — Tarun + needs clear revenue plan. Banks reject vague applications.
• Existing default undisclosed — bank checks CIBIL; default = rejection. Settle first or use OTS.
• Asking for too much — banks size loan to your turnover. Realistic ask = faster approval.

• Tarun Plus (₹10–20 lakh) — fully rolled out.
• Jan Samarth Portal — single window for 13 government credit schemes including Mudra. Reduces approval time to 7 days.
• MSME-Mudra integration — Udyam-registered businesses get auto-fast-track in Mudra.
• Co-lending model — Mudra now eligible for PSU + NBFC co-lending (faster disbursal).

Yes for Shishu (< ₹50k) — GST not mandatory. For Kishore + Tarun, GST or Udyam registration is preferred. Banks may give Kishore without GST if turnover < ₹40 lakh.

Apply for Shishu — starts most new businesses. Can upgrade to Kishore after 12 months operation.

Bank reports to CIBIL → score drops 75–100 points. Recovery via SARFAESI doesn't apply (Mudra has no collateral) but banks can sue civil. Best: contact branch manager early, restructure / OTS. See loan settlement.

Yes — under “transport” category. Loan against the vehicle. No external collateral but vehicle itself is hypothecated.

Mudra Card is a working-capital RuPay card linked to your Mudra loan account. Use to purchase inventory; balance refreshes monthly within sanctioned limit. Like a credit card but tied to business loan.

Mudra: max ₹20 lakh, faster, less paperwork. Stand-Up India: ₹10 lakh – ₹1 crore, only for greenfield ventures, full project report needed. Pick Stand-Up if you need > ₹10 lakh + greenfield.

No — Indian residents only.

No subsidy on the interest itself (unlike PM SVANidhi which has 7% subvention). But MUDRA refinances banks at lower rate, so banks pass on slightly lower interest than commercial loans.

• Stand-Up India — for SC/ST/woman, ₹10L–1Cr greenfield
• PM SVANidhi — for street vendors specifically
• Jan Dhan — open the bank account first
• APY — pension after 60 for self-employed
• 💰 All financial schemes

• MUDRA — official
• Udyamimitra portal
• Jan Samarth portal
• DFS, MoF
• Helpline: 1800-180-1111

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Last reviewed: 3 May 2026.