Central SchemeAll IndiaBusiness, MSME & Startups

Last Updated: 10 Oct 2026 Official Source

Pradhan Mantri Mudra Yojana (PMMY)

Collateral-free micro-credit up to ₹20 Lakh for small business entrepreneurs (₹10–20 Lakh under Tarun Plus for repeat borrowers).

Ministry: Ministry of Finance (Department of Financial Services (DFS))

Verified Government GatewayDomain: www.udyamimitra.in

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Scheme Overview

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Prime Minister to provide loans up to ₹10 Lakh (expanded in October 2024 up to ₹20 Lakh under the new Tarun Plus category for borrowers who have repaid a Tarun loan) to non-corporate, non-farm small and micro enterprises. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs without demanding third-party collateral.

Target Beneficiaries

Small business owners, artisans, shopkeepers, service providers, food vendors

Assistance / Benefit Type

Collateral-free Business Loan

Key Benefits & Financial Assistance

Zero collateral or third-party guarantee required from the borrower.
Four loan tiers: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 Lakh), Tarun (₹5 Lakh to ₹10 Lakh), and Tarun Plus (₹10 Lakh to ₹20 Lakh, only for borrowers who have successfully repaid a Tarun loan).
No processing fee for Shishu and Kishore loans at public sector banks.
Access to MUDRA Debit Card for working capital overdraft limit withdrawals at ATMs.
Low competitive interest rates governed by RBI's benchmark guidelines.

Eligibility Criteria

Ensure you satisfy all the following government conditions before applying:

1Any Indian citizen who has a business plan for non-farm income-generating activity.
2Engaged in manufacturing, trading, or service sector activities, including allied agricultural activities like poultry, dairy, and beekeeping.
3Applicant must have no previous default record in any scheduled bank or financial institution.
4Minimum age of 18 years at the time of application.

Documents Required Checklist

Keep clear digital scanned copies (PDF or JPG under 200 KB) ready:

Identity Proof (Aadhaar Card / Voter ID / PAN Card / Driving Licence)

Residence Proof (Electricity bill / Telephone bill / Aadhaar / Ration card)

Business Address and Proof of Establishment (Udyam Registration / Shop Act / GSTIN if registered)

Bank account statements for the last 6 months

Quotations of machinery or equipment to be purchased

Passport size photographs of applicant/partners

How to Apply (Official Process)

Prepare Business Plan

Outline your business idea, machinery or working capital requirement, and estimated projected revenue.

Visit JanSamarth or Udyamimitra Portal

Go to jansamarth.in or udyamimitra.in, the official Government of India credit facilitation platforms.

Select Business Activity & Check Eligibility

Answer a few quick questions regarding business type, turnover, and loan tier (Shishu, Kishore, or Tarun).

Upload Required Documents

Upload your Aadhaar, PAN, bank statement, and business registration proof digitally.

Choose Bank Branch & Receive Digital Approval

Select your preferred bank branch. The portal matches with willing lenders for fast in-principle sanction.

Proceed to Official Registration Portal

Frequently Asked Questions about Mudra Loan

Can I get a Mudra loan to open a grocery shop or beauty parlor?

Yes, small service establishments, retail shops, salons, transport vehicles, and food stalls are all covered under the Shishu or Kishore category.

Do banks ask for collateral under Mudra Yojana?

No. As per RBI directives and government rules, banks cannot demand collateral security for loans sanctioned under PMMY up to ₹10 Lakh (or ₹20 Lakh for successful past borrowers).

Scheme Factsheet

Classification:

Central Government Scheme

Applicable Region:

All India

Target Category:

Business, MSME & Startups

Maximum Benefit:

₹20.0 Lakh

Application Timeline:

Applications accepted continuously throughout the financial year at all authorized bank branches.

Verified Government Sources

Official Portal Website:https://www.mudra.org.in

Direct Application Link:https://www.udyamimitra.in

Official Helpline:

1800-180-1111 / 1800-11-0001

Official Email Support:

help@mudra.org.in

Open Official Portal

Citizen Advisory

Never pay money to agents promising guaranteed approval for Mudra Loan. Government welfare registrations are strictly handled through official channels.