PM Mudra Yojana Explained: Shishu, Kishor, and Tarun Loan Limits, Eligibility & Documents

Pradhan Mantri MUDRA Yojana (PMMY) was introduced to fulfill the credit needs of non-corporate small business owners who historically relied on informal, high-interest moneylenders. ### Three Categories of Mudra Loans 1. **Shishu Category**: - **Loan Amount**: Up to ₹50,000 - **Target**: Micro enterprises, street vendors, small kirana shops, home bakers, artisans needing startup equipment. - **Processing Fee**: Nil at Public Sector Banks. 2. **Kishore Category**: - **Loan Amount**: ₹50,001 to ₹5,00,000 - **Target**: Established small units planning to purchase additional machinery, buy inventory in bulk, or recruit staff. 3. **Tarun and Tarun Plus Category**: - **Loan Amount**: ₹5,00,001 to ₹10,00,000 (extended up to ₹20,00,000 for entrepreneurs who have previously taken and successfully repaid a Tarun loan). - **Target**: Mature small businesses expanding to newer branches, modern equipment, and commercial transport vehicles. ### Key Advantage: Zero Collateral Requirement Under RBI regulations and Credit Guarantee Fund for Micro Units (CGFMU), no bank can ask for residential land, property, or third-party guarantors for loans sanctioned under Mudra scheme.