• Indian citizen, age 18+
• Non-corporate, non-farm small enterprise (manufacturing, processing, trading, service)
• Aadhaar + bank account
• Existing or new business (not for personal use)

Three tiers: Shishu (up to Rs 50,000), Kishor (Rs 50,001-5L), Tarun (Rs 5L-10L). Collateral-free. Bank rate (typically 9-12%). Tenure 3-5 years. Available at all PSU banks, RRBs, Small Finance Banks, NBFCs, MFIs.

1. Identify your tier — Shishu for new, Kishor for established, Tarun for expansion.
2. Visit any bank / NBFC / MFI — All Mudra-empanelled lenders.
3. Submit business plan + KYC — Aadhaar + PAN + business proof + bank statement.
4. Lender appraises — 30-45 days — No collateral required.
5. Loan disbursed to bank account — EMI starts in 30-90 days post-disbursal.

• Aadhaar
• PAN
• Business proof (Udyam / GST / shop establishment)
• Bank statement (6 months)
• Business plan (Tarun)

Disbursal: 30-45 days for Shishu/Kishor; 45-60 days for Tarun.

• Official portal: mudra.org.in
• Helpline: PMMY: contact lender bank
• Step-by-step apply guide: How-to-apply walkthrough

• Bank refuses citing risk — try multiple banks; SLBC coordinator if blocked at all PSUs.
• Loan demanded for personal use — only business eligible. Show genuine business plan.
• Documents incomplete — get Udyam Registration first; speeds Mudra approval.
• Default risk — CGTMSE backstops to lender; you still owe principal + interest.

Most “delays” or “rejections” clear within 7-15 days of an RTI being filed. Use this 5-question template:

1. Status of my application no. _____ dated _____ as on date.
2. Name + designation of dealing officer assigned to my file.
3. Reasons for delay beyond the statutory timeline.
4. Copy of any noting / movement of my file in the past 30 days.
5. Likely date of disbursement / decision.

Auto-fill the PIO + your case: Open the AI RTI Drafter →

More schemes for you: All msme entrepreneurs schemes

Yes — fully collateral-free. CGTMSE backs the lender.

Yes — Shishu tier (up to Rs 50K) is for new. Provide business plan.

CGTMSE pays lender; you still owe debt. Recovery via standard process.

SLBC PMMY coordinator + RTI to lender + DRDA.

• All 150 Sarkari Yojanas
• 25 status-check guides
• 30 documents-required checklists
• 25 how-to-apply guides
• 16 rejection-recovery guides
• 10 audience-hub schemes
• 32 helplines + grievance routes
• Full RTI Playbook

• Official portal: mudra.org.in
• Issued by: Ministry of Finance / SIDBI
• Launched: 2015
• Citizen feedback via %%AwaazRTI%% (composite, identifying details removed)

Last reviewed: 26 April 2026.